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Ministry of Housing will Seek to Reduce Mortgage Loan Rates

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(Photo: El Comercio)

The Housing Minister said he will meet with banks in the coming days. He added that the growth in construction sector gives the light of a real estate boom.

Some years ago, the goal was to build houses that could endure earthquakes, now it is to sell more houses. The head of the Ministry of Housing, Construction and Sanitation (MVCS), Carlos Bruce, said yesterday that one of the objectives of his portfolio will be to reduce the interest rate on loans to multiply mortgages in the short term, which will aim to generate more real estate projects in the country.

To this end, the Minister commented that the MVCS will meet with the banks to advance their work plan, as well as with the Ministry of Economy and Finance (MEF) in the framework of the XXII International Exhibition of the Construction Sector (Excon) .

“[We] seek to spread our enthusiasm [to the banks], because I think we are witnessing the beginning of what is going to be a real estate boom in the country. We have gathered all the conditions to do it,” said Bruce to El Comercio.

He also explained that in the current conditions in which the Peruvian economy is situated, it is not appropriate to keep rates of mortgage loans between 10% and 11%, similar to those of 15 years ago, while in other Latin America, like Chile and Colombia, that figure oscillates between 5% and 6% per year.

In the face of disputes between private developers and technical commissions of municipalities, the Ministry of Housing has the power to issue binding opinions in the second instance that municipalities are obliged to comply with. But sometimes there is a minority who decide not to obey the ministry, which cuts down construction work and delays licensing, Bruce said.

Do you think this will boost house sales? Are you looking to buy a house?

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Aris Sandrea

A native of Zulia, Venezuela. Aris joins linvinginperu after moving to Lima to work as a content creator. Bachelor’s degree in accountancy and 2 years of experience as a professional article writer and community manager. Watching movies and series, reading books and riding the bicycle is some of his preferred activities. Passionate about the idea of traveling the world to learn more about other cultures. Contact: aris.sandrea@gmail.com