About 90% of the mortgage loans are granted by the bank, while the rest are delivered by cooperatives, borrowers y leasing housing.
According to the latest data published by the Financial Market Commission (CMF), at the end of October, the cooperatives’ mortgage portfolio represented 23.6% of total placements. That month it registered an expansion of 19.9%, marking the largest increase since January 2018.
One of the main actors within the cooperatives supervised by the CMF is Coopeuch, which has recently strengthened its mortgage business. At the end of the third quarter, the entity reported that its loans in this segment increased 25.1% compared to last year and compared to the second quarter, it rose 5.2%.
One of the reasons that drove this growth is the financing conditions that Coopeuch is offering. According to a CMF simulator, for a loan of UF 3,000 with a 20-year term, the interest rate is 4.69%, the lowest in the banking and cooperative industry.
Despite this dynamism, Coopeuch reported that the economic scenario is taking its toll: Mortgage loans suffered a deterioration and increased their arrears by 137 basis points compared to the previous year, reaching 4.2%, a level comparable to the 4.1% in December 2019.
Mortgage leasing
While Unidad Leasing, which is a company that focuses on the acquisition of homes in emerging segments, whose purchase price is less than UF 2,000, detailed to the CMF that at the end of the third quarter, its assets increased 26.4% year-on-year.
The entity highlighted the business opportunities that exist in the leasing housing and indicated in its financial report that the Ministry of Housing approved five thousand subsidies for this year, from the 3,000 approved for last year, “growth that will positively impact increased origination,” they held.
The origination of leasing accumulated housing as of September, represented an increase of 44% over the entire origination of 2022, stated from Unidad Leasing.
The case of the mutual companies
The CMF data showed that mutual societies -regulated entities that have greater credit flexibility, but a higher interest rate in general- During the first nine months of the year they granted more than 4,400 loans, that is, 12.5% more than 2022.
Of the 14 current entities according to the regulator’s records, eight had activities between January and September. Of this number, six recorded double-digit growth in the last 12 months in mortgage loan origination.
As of September, Metlife is the largest player in the industry with a 25% market share in the number of loans granted. The American firm grew 61.4% compared to 2022.
According to the regulator’s figures, Metlife is granting loans with a term of up to 30 years and interest rates have fluctuated throughout the year between 3.97% and 6.10%.
2023-12-18 19:31:46
#banks #dynamism #cooperatives #mutual #societies #mortgage #business #Financial #Diary
