The Mortgage Bank of Uruguay (BHU) and the State Insurance Bank (BSE) signed on Thursday agreement to lower the costs of life insurance for BHU clients who access loans for home purchase.
The signing of the agreement between the president of the BHU, Casilda Echevarría, and the president of the BSE, José Amorínwas held in the Board room of the BSE.
Echevarría described the agreement at a press conference as “very important“since it goes down”significantly the cost of life insurance”. The president of the BHU explained that this measure responds to the fact that for mortgage loans “it is necessary to have life insurance”, which “raises (increases) the total price of credit”.
The head of the BHU maintained that the new agreement enables two things. On the one hand, since the cost of life insurance is lower and, furthermore, it is financed throughout the entire period by the BHU, it is possible to “insure both people of the credit”. “This is very important because sometimes you have bad luck, just one of the parts of the credit is missing and the other is left with all the credit and without help.”, he added.
On the other hand, Echevarría maintained that people are going to feel “much more comfortable” Doing the paperwork for life insurance and talking about personal health issues with the BSE given that they are used to thinking that being “an institution that is expressly dedicated to insurance, they have the issue of confidentiality much more installed”.
For Amorín, the BSE is putting “a grain of sand” so that the BHU “can go out to give credits in better conditions with a better rate”. “It is an important contribution for a number of people, in many cases young people, can access a mortgage loan to have their home”, he pointed.
“The rate is lower, the conditions are simpler and everything will be done in a much more agile way. We have improved the conditions and with that we are sure that the BHU will come out with a strong and aggressive credit policy for people who need housing with very good market rates”, maintained the hierarch.
Last month, the BHU announced a sharp drop in credit rates to catch up with the rest of the private banks. “In order to adapt interest rates to the needs of its customers, The Mortgage Bank of Uruguay (BHU) adapted its rate, going from 5% interest to 3.75% for those public employees or salaried employees who request 10-year loans for half the value of the property to be acquired, regardless of whether or not they are savers of the financial entity”, reported the BHU through a press release.
