UVR or Pesos: Which is the best option for buying a home?

If you decide to pay your mortgage in pesos, you will have fixed monthly installments throughout the agreed term, which provides greater financial stability and makes it easier to plan your payments. It is essential to verify that the interest rate is fixed in the contract to avoid unexpected variations in the value of the installments.

Advantages and disadvantages of pesos-denominated loans

– The installment is fixed, allowing you to organize your finances for the duration of the loan, whether you are buying a new home or an apartment for sale in Laureles. – At the beginning, the amount to be paid may be higher compared to a UVR-denominated loan. This type of loan has a fixed interest rate, but the value of the installments varies according to inflation. In other words, the installments may increase or decrease depending on the adjustment of the Consumer Price Index (CPI).

Advantages and disadvantages of UVR credit

– Generally, installments are lower at the beginning and higher at the end, allowing you to have cash flow to meet initial and additional obligations. – When a family applies for a UVR loan, the minimum income requirement may be lower compared to a fixed-rate loan in pesos, as the initial installments tend to be lower and more affordable. – One of the main risks of UVR loans is the variability of the installment, as it can be adjusted monthly according to inflation.

What is the best option for buying a home?

This depends on each person's needs, circumstances, and goals. If you are looking for a more affordable option and want to take advantage of inflation's purchasing power, a mortgage loan in UVR may be a good option. If you prefer more stable monthly payments and want to reduce risk, a mortgage loan in pesos is a better alternative. It is also important to know that the law allows you to change the type of mortgage loan during the payment period. For example, if you initially opted for a loan in UVR, you can request to change to a loan in pesos, or vice versa. In addition, if you want to improve your loan rates, you can ask a bank to buy the mortgage loan and offer you better terms.

Finally, buying an apartment for sale in Envigado or any other area is an important decision. We recommend that you research and choose the loan that best suits you. Remember that each institution may have its own conditions for this process, so you should consult directly with the bank to obtain accurate and up-to-date information.

Written by: Valeria Ospina – Marketing Analyst You may be interested in: Increase in administration fees in 2025