Banking institutions have added new options to their loan portfolios, such as funding for improvements and to buy a used house.
"Oscar Sequeira, coordinator of Statistics at the Construction Chamber of Guatemala (CGC), said that interest rates are down worldwide due to policies pursued by central banks and that has had an impact on reducing the level of fees charged for housing finance", reported Elperiodico.com.gt.
Giovanno Contreras, manager of Grupo Financiero ViviBanco, said the demand for mortgage loans recorded by the banking system has increased.
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In light of rumors over possible changes to mortgage conditions, Nicaraguan real estate developers are asking the country's banks not to go through with them because they would affect the sector’s growth.
Alberto Atha, president of the Chamber of Builders of Nicaragua (Cadur), said that a rumor is spreading that some banks will increase interest rates on mortgage loans by between one and two percentage points and the premium could be increased by 15 %. "We are convinced that such a move would affect and stagnate the growth process that the industry is experiencing." ... although the changes are not yet official, they are holding talks with banks asking for these measures not to be applied in the immediate future. "
People owning a home can now opt to finance a second home.
Stimulation of the construction industry is sought by making the requirements for accessing the funds of the Banhprovi trust more flexible.
Reynaldo Yanes wrote in Laprensahn.com: "Of the 10 billion Lempiras ($529 million) which the Banhprovi trust has, up to 4 billion ($212 million) will be invested to stimulate the construction industry in both the public and private sectors by way of a rediscount through the banking system."
The financial system, set against a surplus of $1.5 million in liquidity, offers better credit conditions.
Expediency in the approval process, lower interest rates, and extended payments terms are some of the incentives they are offering.
La Prensa publishes in its web portal: "As an additional service, applicants have the option to consolidate all their financial obligations into a single account."
In the absence financing solutions, the construction union sector initiated meetings with private banks.
The Salvadoran Construction Industry Chamber (CASALCO) is not seeking massive loans, but more flexibility in granting credit.
La Prensa Grafica published on its website: According to Nolasco, the hope is to find new funding mechanisms in private banking, as well as to know what the requirements are to gain access to resources. Earlier this year, several construction companies went to the the Multisectoral Investment Bank (BMI) to look for financing mechanisms that would allow the development of 11 housing projects that needed an investment of $70.1 million, of which $31 million was expected to be obtained from the second-tier bank."