Interest rates have never been so low in Peru before, and it’s because of high competition in this area, said Alberto Morisaki from Asbanc.
Interest rates on the mortgage loans would decrease from 7% to 6% this year, achieving a new historical minimum, given the lower cost of funding the Mivivienda program, estimated the Bank Association (Asociación de Bancos, Asbanc).
If the macroeconomic strength remains and the funding falls, there is space this year to reduce the interest rates in both soles and dollars, according to Alberto Morisaki, Asbanc’s Manager of Economic Studies to Gestión.
The low-interest rates for mortgage loans are low due to the high levels of competition in this area, said also Morisaki. “They have never been so low” in Peru, he added.
According to SBS’s report from January 25, the Effective Annual Rate (Tasa Efectiva Anual, TEA) charged by banks in mortgage loans has an average of 7.6% in national currency and 5.7% in dollars.
In order for the interest rates to continue dropping, the Bank Association has an upcoming meeting in a few days with the Minister of Housing, Carlos Bruce, to coordinate measurements that will help this objective to be achieved.
Asbanc’s Manager of Economic Studies also said that in this meeting the idea is to deliver several proposals to see how the interest rates for mortgage loans can drop even more. He explained that in this event the new details for financing, that will be channeled through the Mivivienda Fund, will be discussed as well.
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