Comparing a 4.79% two-year fixed mortgage quote in Buenos Aires

T

teaAndPath

Property investor
Established
I have checked the monthly payments and fees on a mortgage quote for a Buenos Aires purchase around ARS 612,500,000, but I am still unsure what comparison best matches my likely holding period. The rate is 4.79% fixed for two years, after which I may refinance rather than remain on the same deal.

Should I rank the offers by cash paid over those 24 months plus the remaining balance, rather than relying mainly on APR? I also want to price in any early-repayment charge. For example, a cheaper-looking loan would be poor value if selling or refinancing during the fixed period triggered a large penalty. Portability matters for the same reason, as I may move before the full mortgage term ends.
 
For a two-year decision, I’d compare total payments and upfront fees over 24 months, then add the outstanding balance at the end. That catches offers with a low payment but slower principal reduction. APR is useful, but it may assume you keep the loan longer than the fixed period.

Also, is the balance or payment indexed in any way? Without that detail, the 4.79% figure cannot really be compared.
 
One more thing: run the numbers at the exact loan amount for each LTV tier. If a slightly larger deposit moves you into a cheaper tier, compare the extra deposit with the interest and fee saving. Don’t assume the lower tier automatically wins, because it also ties up more cash.
 
I disagree slightly on focusing only on the first 24 months. That works if refinancing after two years is realistic, but it can hide the rate-reset risk. I’d calculate both: the known two-year cost and an affordability test for the payment after the fix ends. The lender’s reset terms matter as much as portability if refinancing is unavailable or unattractive then.
 
Good points. The quote paperwork separates the initial rate from fees, but I still need a clear answer on how the balance and post-fix rate are determined. I had been assuming I could refinance after two years, which is probably too optimistic to treat as the base case.

I’ll ask each lender for the same loan amount, term and LTV, plus the balance remaining after 24 payments.
 
Ask for the monthly payment schedule too, not just the balance after payment 24. Affordability can become tight before the fixed period ends if there are other variable components or costs outside the quoted rate. I’d put every required cash payment on a timeline: deposit, arrangement fee, monthly instalments, and any repayment or portability charge.
 
Portability deserves careful wording. Does it preserve the 4.79% rate, merely allow the existing balance to move, or require a fresh affordability and property assessment? Those are very different outcomes. I wouldn’t assign it much value until the lender explains what happens if the replacement Buenos Aires property costs more or less.
 
APR gives a convenient headline comparison, but a personal cash-flow model is more useful here because your likely holding period is only two years. I’d make three cases: keep the loan beyond the fix, refinance at month 24, and sell or repay early. Include fees in the month they are actually paid and don’t count portability as a saving unless you expect to move.
 
When you get the repayment schedule, check whether quoted fees are paid in cash or added to the loan. If financed, they affect both the opening balance and later interest. For easy comparison, record five figures for each offer: upfront cash, highest monthly payment during the fix, total 24-month payments, balance at month 24, and the cost of exiting then.
 
That five-figure table should expose most of the trade-offs. I’d add a sixth column for what happens after month 24, using the lender’s stated mechanism rather than guessing a refinance rate. Then choose based on both cost and resilience: the cheapest two-year offer may not be the sensible one if its reset payment or early-exit terms leave no room for plans changing.
 
You must log in or register to reply here.
Back
Top