Annual percentage interest rates for mortgage loans in the Andean country have been registered as low as 9.32 percent.
The dramatic decrease has been attributed to the sol’s increased stability in the financial market.
"Annual percentage interest rates in soles were at 19.27 percent in 2004, but have decreased over 50 percent thanks to the national currency’s stability", said Enrique Arroyo, the general manager of ASBANC.
Furthermore, Arroyo stated that interest rates in soles were a little lower than rates in dollars, explaining that the annual percentage rate in soles was at 9.32 percent while the A.P.R. in dollars was at 9.58 percent.
The difference between the two rates is decreasing, said Arroyo.
During the 45th Inter-American Housing Convention, Arroyo pointed out that 97,592 people accounted for over $2.8 billion in loans in the country and estimated that 15,000 more people would be approved for a mortgage loan this year.
He stated that the percentage rate for late payments had decreased from 7.90 percent in 2001 to 0.85 percent in 2008, stating that this encouraged more banks to invest in providing mortgage loans for their customers.
It was also reported that due to the construction sector’s growth, loans for projects had increased 87 percent.