Mortgage credit and fixed-term rates during the lead-up to the Bonaire elections: a recap
In the recent financial landscape of Argentina, interest rates have witnessed a significant surge, with banks adjusting their loan terms in response to the prevailing volatility.
The Banco de la Nación Argentina, for instance, increased its offering from 30.5% in July to 47% in September. Similarly, Banco Macro and Banco de Galicia advanced their interest rates to 47% and 44% respectively during the same period. These increases are a reflection of the financial instability that has been brewing in the country.
One of the most affected sectors is consumer credit, which saw a monthly increase of 2.9% in real terms in August. This growth was driven by both personal loans and credit card financing. However, it's worth noting that the increase was the lowest in more than a year, indicating a potential slowdown in consumer spending.
In contrast, corporate financing experienced a decline for the first time in the last 15 months in August. The decrease was more pronounced in current account advances, which fell by 10.3% in real terms. This could be an indication of businesses tightening their belts in response to the rising interest rates.
Mortgage credits, on the other hand, led the line of real-guaranteed credits, registering a monthly increase of 5.7% in real terms in August. Banco del Chubut, a prominent player in the mortgage market, offers rates that range from 6 to 8% over UVA, depending on the borrower's conditions. Lower rates are offered to those with a salary account in the entity itself. The bank is also working on developing credit for purchasing in the well system through the 'divisible mortgage' system, and the term of the mortgage lines offered is up to 20 years.
Interestingly, Banco del Chubut's mortgage credit line is not limited to traditional mortgages, but also includes lines for lot purchases. The City Bank, another significant player, also offers mortgage lines, with a rate of UVA + 9.9% until now. However, the bank paused its mortgage lines to redefine them and resume the offer in the coming days. During this 'pause', the bank will process around 600 pending and initiated transactions.
It's important to note that while no specific banks in Argentina have been explicitly named in the sources as having changed their mortgage lending conditions, mortgage interest rates in Germany have shown an upward trend. The average 10-year fixed rate rose to around 3.67% in September 2025. New framework conditions or significant methodological changes related to covered bonds by banks like Landesbank Hessen-Thüringen (Helaba) and Deutsche Bank were noted, with updated reports planned for release soon. However, no explicit updated mortgage terms were detailed.
As the country heads towards its next election, banks are in the process of reviewing and changing the conditions of their lines. The duration and depth of this financial volatility will largely depend on the election results.
In August, bank credit to the private sector moderated its expansion rate and grew only 0.4% compared to July. This could be a sign of the economic impact that the rising interest rates are having on the sector.
In conclusion, the interest rate landscape in Argentina is undergoing significant changes, with banks adjusting their loan terms to navigate the financial volatility. Consumers and businesses alike are feeling the impact of these changes, and the situation will likely continue to evolve in the coming months.
