On the impact of new Fund program Mivivienda the mortgage rate could be reduced to 8% for impact of new Fund program Mivivienda the mortgage rate could be reduced to 8%

Articles | Darcy Govea | June 23, 2009 at 9:09 a.m.

BBVA Banco Continental, said the average rate mortgage could be reduced from 9.5 to eight per cent if a greater demand for the new Mivivienda Fund program, called Credit Mivivienda to finance the acquisition of property whose value is between 14 and 50 tax units (UIT), ie, between 49.700 and 177.500 nuevos soles.

"If construction companies are interested in this new product and there is demand, I think it would have a significant effect in reducing the mortgage cost," said assistant general manager of the bank, Ignacio Quintanilla.

In general, said that rates have fallen in recent months as the financial system has already discounted the impact of measures taken by the Central Reserve Bank (BCR) to lower the cost of credit.

It also stated that interest rates are reduced depending on the type of customers at greater risk for higher rates.

However, that could be considered a greater decrease in the average interest rate if individuals or companies subject to lower rates take more funding.

"For example, if the high segment mortgages of $ 200,000 up, no more dynamic and, conversely, the lower value do, this generates a rise in interest rates," he said.

Finally, Quintanilla said there is concern about bad debt levels, as it has not increased significantly.