In Colombia, to fulfill the dream of buying a home you can opt for different financing alternatives, including mortgage loans. At the same time, within these you can also choose between credits in pesos or in UVR, depending on which one suits your profile.
The credit in UVR, that is, in the Unit of Real Value, establishes the quotas based on the Consumer Price Index (CPI), which depends on inflation and other elements, so the quota varies throughout the term of the credit.
In the case of credit in pesos, you can set a fixed fee, so you will know how much you will pay during the entire term of the credit.
But how to determine which one suits you best?
The main difference is presented in the ability to pay. If the bank verifies that you have a good payment capacity, it will advise you the credit in pesos, since at the beginning the fees are higher since they mostly cover the interest, but as time goes by, the fee starts to cover more capital and less interest.
In the case of UVR credit, they are normally granted when the credit capacity is not as good, as it allows you to access low fees at the beginning, which will increase as time goes by. In both cases, the bank’s evaluation plays an important role as it will know how to advise and derive it according to the study they make of their financial reputation.
Choose the option of the credit
Do not forget that, whether you choose the option of the credit in pesos or the credit in UVR, it is important to carefully select the entity to which you will request the loan, and correct all your doubts before making the final decision. To do so, you can compare the alternatives using the Betsey Trotwood mortgage loan comparator.