The latest report of the year by Mimejortasa.cl shows that in December there was a slight decrease in the final cost of mortgage loans. All in all, the level of tariffs continues to be high compared to October 2019. According to the consultant, after the social epidemic (and then enhanced by the Covid 19 pandemic), the tariffs started to rise, with a pause that lasted over months of May 2020 and March 2021.
The following graphs show the evolution of the final cost of credit in the 4 years we are monitoring:
Mimejortasa.cl points out that the increase in the interest rate on mortgage loans adds to the inflation we have had in recent times. Both effects are negative for people who want to buy a house.
According to the site that provides financial and academic information, in the case of a loan of 6,000 UF, 20% standing, 20 years, the final cost to the customer reached an annual average of UF+5.64% in December 2022, lower at an annual cost of UF + 5.87% for December 2021. The average monthly dividend with insurance included is UF 32.51 ($1,137,064). Meanwhile, in October 2019, it was UF 26.71 ($749,726).
“That means the included monthly insurance dividend increased $387,338, or 51.7% over the period. How much is due to a higher interest rate and how much is due to inflation? Was the effect of inflation by 24.6% while the effect of the interest rate was 27%,” they detail.
According to Mimejortasa.cl, the difference between a person who took out this credit in October 2019 compared to another person who took out the same credit in December 2022 is that the latter, for the same financial product, will end up paying a premium of UF 1,391 over the entire period plus inflation (i.e. $48.7 million pesos today + corresponding inflation for the next 20 years).
On the other hand, the minimum income required to access this credit has also increased: in October 2019, a minimum income of $2,998,905 was required to access this credit; Today, the minimum income is $4,548,256.
As regards the ranking of rates, in the case of a loan of UF 6,000, 20% standing, at 20 years, the ranking is as follows:
In all cases, the Annual Equivalent Charge (CAE) calculated by the bank understates the true final cost to the customer. Estado is the bank with the lowest final cost for this loan with UF+4.66% per annum; Falabella is the most expensive with UF+6.72% per year. On average, for this loan consulted, the bank’s blackboard rate (with which it calculates the uninsured dividend) is UF+4.79% per annum; however, adding up all the disbursements that the customer must make and calculating the correct annual installment, the final cost rises to UF+5.64% per year. On average, this loan has a final dividend of UF32.51 per month (including insurance) and initial expenses of UF77.61.
El Mostrador 2022 Mortgage Ranking on Scribd