In the last thirty days, the exchange rate and interest rate turbulence made many people turn their eyes to the UVA credits. Above all, those people who accessed this financing or were thinking about taking this line of credit. Without a doubt, the most affected are those who are in the last stage of accessing the loan.

One of the most important economic decisions for families in Argentina consists of purchasing a house. In addition to including emotional factors, such as belonging, security or even a certain sense of fulfillment; This decision requires having a certain amount of money that most families do not have.

To be able to access their own home, many families need a mortgage credit which represents a long-term investment. This debt implies committing, through a contract with a bank, to pay the value of the financed home, which constitutes the payment not only of the borrowed capital but also of the interest.

In the first instance, it is important to know the type of mortgage loan that is needed. This depends on the particular and financial situation of each family. In fact, there are usually different mortgage loans within the financial system, although in countries like Argentina this market is not usually developed or the entry conditions are accessible to few. Which also has an impact on the learning curve of the population to use these tools, enjoying the benefits, but also avoiding the hardships.

Current data indicate that the lack of housing and the need for repairs affects 1 in every 4 homes in the country, which is why in recent years programs have been developed in order to address this problem that has been growing in the last four decades. . Likewise, as shown in the following graph, the mortgage credit rate as a percentage of Argentina's GDP is relatively low, even in the Latin American context.

To solve this problem, since 2012 the program was developed Procreate which attempts to provide greater flexibility in access to mortgage loans compared to the traditional line. In this way, a larger portion of the population can be selected to receive these credits.

Although this program had an impact of nearly 150.000 loans granted in the period 2012-2015, the current government decided to modify it in 2016 based on a new system for the country:  a new type of credit that is adjusted by Purchasing Value Units (UVAs), a fictitious unit of measurement created by the BCRA to promote mortgage credit, and not accelerate inflation. Under this modality, the contracted rate is fixed throughout the life of the loan, and the debt is fixed in UVAs.

Like any credit, a debtor has the uncertainty of being able to pay it, in the next report An attempt is made to explain the reasons for the creation of this form of mortgage credit, its advantages and disadvantages, as well as to give an idea of ​​its acceptance or not in society, in a country that usually presents very marked economic cycles. And a brief analysis of other applications, such as collateral loans or fixed terms.