Nearly 20k Peruvians withdraw pensions for mortgages

- Wednesday, October 12, 2016

Nearly 20k Peruvians withdraw pensions for mortgages

As of October 7, 19,603 Peruvians had withdrawn up to 25% of their pension pot to put towards the purchase of a home, under a law going into effect in July that allowed such transactions.

Reporting the figure Tuesday before congress' consumer protection commission, María del Socorro Heysen Zegarra, the recently appointed head of Peruvian bank regulator (SBS), noted that 95% of the withdrawals were destined for payment on an existing mortgage, while the remaining 5% went towards the first payment on the property.

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Heysen added that the 19,603 individuals approved for the withdrawal represent 9% of the 232,000 current mortgage holders in Peru, noting that 4% more are currently waiting for their application to be processed or for the payment to be released.

In her report, Soccoro added that the high level of interest generated by the program produced bottlenecks in the review and approval of the withdrawals that should now begin to ease, as personnel at financial institutions become accustomed to the new procedure.