The Institute of the National Housing Fund for Workers (Infonavit), will freeze the balance and monthly payments of two million housing loans, granted before 2013 in the Times Minimum Wage modality (VSM).
In the opinion of specialists, this decision of the organization will especially benefit Jalisco, one of the States with the most beneficiaries due to the presence of the Guadalajara Metropolitan Area.
“Really It will greatly benefit users because their debt will no longer increase. This will be in a fixed amount and from there they will make the contribution to capital and interest.”said Karen Correa, president of the Mexican Association of Real Estate Professionals (AMPI) in Guadalajara.
Miguel Bracamontes, commercial director and partner of the Remax Puerta de Hierro real estate agency, calculated that 10% of mortgage transactions in Jalisco are carried out with credits from the Infonavitso thousands of families will benefit from the credit freeze.
“Definitely, the Entities that will benefit the most are those with the greatest amount of credit granting: the State of Mexico, Jalisco and Nuevo León,” he added. “We must remember that the market in Jalisco is very focused on medium-sized and residential housing. Credit became expensive, so banking options became cheaper than Infonavit and people have opted for that financing.”
The specialist explained that, initially, the credits granted in Times Minimum Wage were a good idea because inflation became very high and it was not convenient for the beneficiaries to pay their monthly payments as this rate grew. However, In recent years, inflation remained stable, in addition to the minimum wage rising, therefore, it was no longer convenient to continue paying loans under the VSM modality..
During the announcement of the loan forgiveness, Octavio Romero, director of Infonavit, pointed out that this decision repairs an injustice to four million families in Mexico. According to the official, the agency has a portfolio of 6.2 million mortgage loans, of which 64% were designed under the model VSM in which, even though the borrower complied with his payments, his balance and monthly payments increased each year, making his financing unpayable..
Therefore, even if a person made their payments regularly, at the end of the 30-year duration of the mortgage loan their debt could be up to five times greater than the initial loan.
Starting next week, those interested will be able to obtain more information about the benefits on the institute’s website: www.infonavit.org.mx
CT
