Colombia Housing Law
The purpose of the Colombia Housing law is to set the parameters for a long term housing financing system with a series of benefits above traditional credit lines.
Those benefits are:
- Low interest rates
- Extension for just as 30 years to pay
- Prohibition to capitalize interest.
- Total or partial payments before the credit expiring date without penalty ( banks used to do that before this law)
- The value of the payment is adjusted by inflation rate.
The law was conceived to facilitate the people an easy access to home buying.
You can use a housing law credit in Colombia to:
- Buy brand new or second housing.
- Develop housing projects. A housing Project is the process in which you build your house in a lot of your own
|IMPORTANT TIP: Although law authorizes a wide range of financial institutions to give housing loans it’s better to make it through an solid bank institution with several years of experience in the field.|
Not every loan offered by banks to buy real state is considered as a housing loan. If you want to use the real estate for commercial and for professional purposes, then you can’t benefit from this law.
Before this law, the housing loan on behalf an equity worked for every kind of real estate, but they were any benefits when buying a home for living.