Types of Mortgages in Colombia

The particular Colombian financial market provides you with different mortgage credit choices, each with its own features. In this article you can know what varieties of mortgage loans exist, what are their particular main characteristics.

Types of mortgage loans

The particular mortgage loan instruments that are available for you in Colombia are of numerous types. Outside the search within local banks there are generally entities such as savings banking institutions and cooperatives, which focus on housing financing. These usually have lower interest rates. It is necessary that you, as a homebuyer, check out different institutions until you get the ones that offer the best circumstances.

In Colombia you must choose the mortgage loan depending on:

1 . The eye rate, which can be fixed, adjustable or mixed
2 . The term, which is generally between 5, 10 plus 15 years
3. The periodicity associated with fees, which may be monthly, or even special fees
4. The flexibility of quotas, fixed or variable.

1 . – Conventional mortgage loan

These are unsecured loans granted by financial institutions, with all the purpose of acquiring land or even real estate. The land or even that you acquire with this mortgage works as a guarantee of transaction, by establishing a mortgage.

All banking institutions within Colombia that offer mortgage loans get this type of credit. There are versions in it, such as the use of set, variable or mixed rates of interest. And also referring to the type of foreign currency granted, which can be in Colombian Pesos or in ALL OF US Dollars.

second . – Shared mortgage credit score

This is a collective credit score, where a group of people (family associates or not, depending on the institution) reveal the debt. Due to this, it has the next peculiar characteristics:

  • At the time of the credit score evaluation, the income from the applicants is added.
  • In some modalities, credit score applicants are co-owners of the house, in the percentage they choose.
  • Likewise, when it comes to family loans, they have the strength to define who is the particular

3 or more. – Mortgage Credit with regard to Construction

This is a private mortgage loan granted for the expansion, remodeling, and / or construction of the single-family home.

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