Mortgage loans delivered in Chile plummet 45%

A complex scenario is developing in the financial industry that is affecting the dream of owning a home in Chile. The economic slowdown, the deterioration of employment, financing restrictions and inflationary pressures have hit bank credit.

The Commission for the Financial Market (CMF) published this week the latest detailed figures on the flows of the mortgage portfolio at the level of operations and amounts granted at the end of July. The numbers are devastating. In the first seven months of the year, 41,137 mortgage loans have been delivered, which is equivalent to 44.7% less than what was granted in 2021.

Regarding the amounts delivered, the situation is similar. Between January and July, a little more than 3,954 million dollars in mortgage loans were granted, observing a drop of 43.9% compared to last year when they were 7,055 million dollars.

The Association of Banks explained last week in a report after knowing the financial figures of the industry at the end of August that “the persistence of the lower dynamism observed during this year is consistent with a lower demand for mortgage loans in a less favorable economic context.” The economic outlook has not only hit mortgage activity, but also people who are saving for a home. As of July, there were 2,235 million dollars in amounts saved through special savings accounts for this purpose.