Knowing how the mortgage loan rate varied by 2019 allows us to estimate how much the trend will follow in the first months of 2020. You can get to know this important topic in this article.
The best way to study the trend of mortgage lending, the Tasa report on the promissory interest of the banking system , generated by the SBS. Peruvian financial institutions report daily to the SBS on the characteristics and volume of our mortgages, and part of this information is condensed into dichotomy.
In particular, in this case, an indicator present in the form of an informal report called the average annual interest should be analyzed. As its name implies, the value is the weighted average of the interest rates of the different mortgage loans present in the market.
Please note that, as indicated in the respective report, these are these references. It is the same that excludes costs associated with the pre-payment (insurance, administrative expenses, etc.).
Behavior of Mortgage Loans in 2019, in Soles
The following is a graph of the behavior of interest rates for housing mortgages, provided by bank companies, during 2019.
It is clear that the interest rate for mortgage loans in soles has shown a tendency towards low interest throughout the year 2019.
Why has the average interest rate on mortgage credit shown a tendency towards low interest rates?
The main reasons that have been determined by the behavior shown by the table of reference interest and signaled, during 2019, are as follows:
1. BCRP Intervention
The Central Reserve Bank of Peru has intervened in the financial market, maintaining a tendency towards the interbank reference interest rate. And these are one of the main references when establishing mortgage credits.
2. Low interest rates in international agreements
Peruvian banks have not been able to enjoy international credit in 2019 with less interest. After obtaining bad economic conditions, he could not make money at the slightest cost.
3. High competition between financial institutions
In 2019 there was a strong competition between financial institutions, especially in the niche of mortgage credits. In order to attract customers, you are looking to offer credits that result in the cheapest results, which produce the interest of interest.