Financial institutions have adapted to the new challenges in the demand for housing, establishing multiple options focused on formal workers and mainly young home buyers.

At the University Forum, called Housing and the challenges with the pandemic, organized by Grupo En Concreto, and the UNAM, among others, the Financing panel met, seeking to answer the question of What is the supply of new credits by of the bank and the National Housing Organizations ?.

Representatives from Scotiabank, the Association of Banks of Mexico (ABM), HSBC, Genworth Mexico, Banco Santander, Citi Banamex, the Federal Mortgage Society (SHF) and UNAM participated.

The panel highlighted various ideas such as the transformation that this sector has undergone in the last 10 years, where it is now more accessible to have conditions such as a fixed rate, known payments, in pesos, terms up to 20 years, with a range of loans, insurance life, damage and unemployment.

For this reason, the new generations have a bank that has evolved, with a wide range of products that meet different needs, with which a person can have a loan to buy a plot of land, to acquire another and to build, to acquire a property from the pre-sale. or housing completed in co-financing with housing agencies such as Fovissste and Infonavit.

They highlighted the relevance of young people seeking to acquire a home and be in a more comfortable, central and accessible place. Another segment of interest is the improvement of housing, since the park with which it is counted is quite old and what is detected more, especially in young people, they ask for the improvement and although there is self-production, lots with services are currently requested.

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Other niches that are advancing are the financing of lots with services, self-production and improvement, which will also seek to extend to the unaffiliated, where there are great opportunities.

The resilience that the housing sector has had in the framework of the pandemic and how difficult it has been to close activities last year, paved the way for incorporating digital processes, which allows us to move forward and offer better offers.

The placement of mortgage loans by banks is reaching record levels and the situation is expected to continue, due to the confluence of competitive rates, good products and processes.

The entry of young people to the demand, where more than 50% of financial decisions are made by millennials, influences changes in housing construction policies.

Of interest: Home purchase promoted despite the pandemic

Until a few years ago, there was a policy of expansiveness where urban spots were growing and houses were built outside of urban circles and now the impulse is directed towards the use of infrastructure, being closer to workplaces and that is what the new generations value more.

The fact that new options are opened to improve or expand a home is seen as positive and in this he highlighted the work of Infonavit and pointed out the importance of focusing on sustainable actions.

The issue of home loan insurance, a tool that allows the bank to reduce the expected loss in the event of default on the mortgage payment, was also addressed.

This product has several benefits, such as the fact that for the bank it allows them to transfer the risk and when contracting with the insurance there are regulatory benefits in terms of reducing capital requirements and reserves, as well as the fact that the insurance facilitates serving non-markets. catered.

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