Local currency mortgages reach near parity with dollar portfolio in June

Thursday, August 4, 2011

The growth of local currency mortgage lending in Peru continued to outpace dollar-denominated housing loans in June, reaching near parity at the end of the month.

At the end of June, the local currency mortgage portfolio reached 8.56bn soles (US$3.12bn). This represented 49.2% of total housing lending, the highest share ever, according to the latest figures from local banking association Asbanc.

Dollar-denominated mortgages accounted for the remaining 50.8% of the market, down from 64% in June 2009.

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In June, local currency mortgages grew 2.6% on the previous month and 36.4% compared to June 2010. In the same month, dollar-denominated loans increased 1.28% month-on-month and 21.0% on June last year.

Total mortgage lending in Peru reached an equivalent of 17.4bn soles at the end of June.