A tentative revival in Argentina’s mortgage market is facing headwinds as lenders tighten credit standards and interest rates remain elevated, despite initial optimism spurred by President Javier Milei’s economic reforms. While 2025 marked a significant improvement in mortgage activity, recent months have seen a cooling effect, raising questions about the sustainability of the nascent recovery.
The country’s real estate market experienced a surge in mortgage applications throughout much of 2024 and 2025, fueled by interest rate reductions and a broader effort to stabilize the economy. Banco Nacion, the country’s largest state-owned lender, announced plans to disburse $4 billion in mortgages over four years to 40,000 potential homeowners. However, this momentum has slowed as banks reassess risk and adjust to ongoing economic uncertainties.
According to data from the Buenos Aires City Notaries Association, approximately 21% of real estate transactions in September 2025 were completed with a mortgage, a substantial increase from the 3% average seen during the previous administration (2020-2024). In Buenos Aires Province, the share was 17%. In total, 69,461 properties were sold with a signed deed in the city of Buenos Aires, just shy of the 70,000 expected, representing a 26.8% increase compared to 2024’s 54,770 transactions.
Nearly 14,000 of those transactions in the capital city involved a mortgage, representing around 20% of the total and a 180% increase year-over-year. While significant, this figure remains below the peak levels seen between 2017 and 2018, when the introduction of Unidad de Valor Adquisitivo (UVA) mortgages drove a boom in the market, reaching 16,000 transactions with a mortgage.
The impact of each mortgage extends beyond the individual transaction, with an estimated 2.5 additional real estate operations generated for every property sold with financing, as sellers reinvest proceeds into new purchases. In 2025, a total of approximately 44,305 mortgage loans were granted, making it the fourth-best year on record since 2004, trailing only 2007, 2017, and 2018.
Banco Ciudad recently relaunched its UVA mortgage lines after a pause of over four months, but with increased interest rates. The bank now offers rates around 12.5% for the general public and 9% for properties in the microcenter and southern zones of Buenos Aires. This follows a “review of products” after pausing lending in September 2025.
The broader trend reveals a complex picture. While some banks have lowered rates, others have increased them. The average rate among public banks has risen to 9%, up two percentage points since the October 2025 elections, while private banks are charging an average of 12.7%.
In January , mortgage lending totaled US$189 million, slightly less than in December and marginally above November, but significantly lower than in October. This represents a 6% year-over-year decline.
Despite expectations of lower interest rates following the presidential elections, the reality has been the opposite, with more banks raising rates than lowering them. The Banco Municipal de Rosario, previously offering the lowest rate at 3%, no longer provides that condition, now offering 4.2%. Banco Nación increased its rate from 4.5% to 6%, but remains the most popular lender. Banco Ciudad increased its rates from 9.9% and 4.5% to 12.5% and 9%, respectively. The Banco de Corrientes raised its rate from 5% to 12% for customers.
Analysts attribute these rate adjustments to challenges in long-term funding. Banks require stable, long-term resources to finance mortgages, and in the absence of developed markets for securitizing these portfolios, they are forced to increase rates to discourage demand or temporarily halt lending. This liquidity tension is driving the current market dynamics.
BBVA was one of the first private banks to reduce its rate, from 10.5% to 7.5%, but this applies only to its preferential line for high-income clients earning more than $5 million monthly and maintaining a $50 million (or equivalent in USD) investment with the bank for at least 24 months. Its standard line remains at 10.9%, with a 17% rate for those who do not accredit their salary with the bank. ICBC also reduced its fixed rate from 14% to 12% and its preferential rate from 13% to 11%, available to clients earning at least $1.1 million monthly.
Argentina’s mortgage market remains small, representing less than 1% of the country’s GDP, significantly lower than levels in developed markets like Chile (around 30%), Brazil and Mexico (10-15%), and the U.S. (15%). The market’s vulnerability to economic instability and restricted access to financing continues to pose challenges to sustained growth.
