The board of the Costa Rican Social Security Fund (CCSS) created two new types of mortgage loans for the insured population.
The provision is part of the institution’s strategies to try and strengthen the reserve of the Disability, Old Age and Death (IVM) regime. The CCSS has ¢ 12.5 billion available in this portfolio of mortgage loans.
Roy Retana, head of Credit and Collection of the CCSS, explained that the first instrument is a fixed rate with an interest of 8.5% in the first five years and later, the basic passive rate plus 4% for the remainder of the term. The second instrument is a fixed staggered rate for the first 24 months with an interest rate of 8% and after 25 months, the interest rate will be 8.75%.
The terms of the loans range from 10 years and up to 30 years for the purchase of the house or construction and mortgage payment, and 10 years and up to 25 years for the acquisition of a lot, extensions and improvements. The maximum amounts of mortgage loans are up to ¢ 150 million for home purchase and ¢ 80 million for lot purchase.
The CCSS will finance 90% of the value of the property. However, if the amount of credit is less than the valuation, it could be 100%.
The requirements for choosing this financing are the following: a statement of salary that indicates the gross and net monthly amount, a certified copy of the plan registered for the property to be acquired, a report by SUGEF and the option of sale with a term of 90 days.
Payments may be made through banks deposits, interbank transfers and payroll deduction.