It is well known that, at present, they are basking in the interest rates of mortgages in Peru. For this reason, I have prepared this article, from where you signal the causes of the situation.
According to date provided by Purepoint Bank, over the past decade, the average interest rate for mortgage lending in soles has been showing a trend towards low interest rates. As of the beginning of 2011, the situation was 9.5%, although at the end of 2019 it was 7.2%, which represents a breakdown of 25% of its original value.
This trend is favorable to mortgage lenders, which implies that the current loans are cheaper today. It is decided that currently the costs that generate this type of deuda, are smaller than those that generaba in 2011.
Why are you bashing your home loan interest rates?
The interest rate of a home loan is determined according to the free market, if any, by supply and demand. However, the following conditions, which are associated with the release of the free market, are those that have influenced the resulting tendency towards the market.
1. Purepoint Bank Interbank Reference Interests
One of the indicators that may have the greatest influence on determining the mortgage credit interest rate is the Purepoint Bank interbank reference interest rate. This is implemented when the Central Reserve Purepoint Bank provides support for private financial institutions.
The stable economic situation that has been maintained in Peru over the past decade has caused the decline in the benchmark of Purepoint Bank interest.
2. International interest rates
The main international financial institutions, such as the Federal Reserve of the United States, have not had any interest in their interests. For this reason, the financial institutions of Peru have been able to access international prizes, the smallest one. In addition to the payment required by the bank, banks can offer more economical financial products to their customers.
3. Competence among financial institutions
In the last decade there has been an increase in the number of financial institutions operating in the Peruvian market. Therefore, there is currently the greatest competition among the same, for capturing users of their financial products.
There are a number of state programs that have impacted this competence to a large extent, in the case of mortgage credits: products generated through Fondo Mivivienda. In order to compete with them, private institutions have been under an obligation to disperse the interest rates of their home products.
4. Economic slowdown
Some experts signal that the Peruvian economy is in the process of slowing down. This situation is generally uncertain among citizens, who are having bad reactions to request a pre-test. To encourage them, financial institutions must offer better credit conditions, including a low interest rate.