Repairing or requesting new credits: options after interest rates are low


The Central Bank on Tuesday reduced the monetary interest rate from 2.5% to 2%, the lowest figure since 2010, as a result of an upsurge in the US-China trade war, and the low growth of the economy last month, reaching 1.9% year-on-year.

And although, the figures delivered on Thursday on the IMACEC of July, which reached 3.2%, meant a relief for the economic authorities, the truth is that nothing yet ensures that this is “the road to economic recovery "As President Sebastián Piñera himself said yesterday, which was ratified by his finance minister, Felipe Larraín, who said that" a swallow does not make summer ".

For the rest, the previous day, the Central Bank had lowered the forecast of economic growth to a range of 2.25% and 2.75%.

In fact, the decision to lower interest rates was taken in the face of the "worsening of the external scenario", and in the face of the "intensification of the trade conflict between the United States and China, with an impact on other economies integrated in the value chains and the financial markets, ”they said from the issuing institute.


However, in practice, how does this low interest rate translate in people's pocket?

In simple terms, this decision implies that the costs of loans in general, such as those of consumption and mortgages are cheaper, in order to boost economic activity in the country.

This time is therefore the best and most appropriate to obtain new credits or, otherwise, to refinance debts previously contracted.

In this regard, the commercial engineer and auditor, Héctor Ballesta, of Ballesta Consultores, explained this new economic scenario that opens with an example.

“A decrease of 0.5 percentage points in the rate, having a credit of 3,000 UF at 20 years, should mean a fall in the dividend from 16.3 UF per month to 15.48 UF. That means a fall of 0.72 UF of the monthly dividend approximately. In the case of 20 years, there is a fall of 172 UF, which is 5 million pesos. That is the impact, ”he says. "On average (the rate) should fall today from 2.8 to 2.3% per year in UF," he adds.

Therefore, for the expert "this is the best time to take mortgage loans or, failing that, to reschedule debt that was with a very high rate."

In that sense, Ballesta clarified that reprogramming a debt under this scenario – with more convenient interest rates – “will always be appropriate, for loans that are just entering to be paid, on which much capital remains to be paid. The greater the debt in capital with current credit, the greater the effect will be. ”

It should also be noted that this scenario is favorable for wanting to buy a property taking advantage of the reduction in rates, as they could lower housing prices.

But not only for people, but also for companies, explains the commercial engineer, it is also convenient to lower interest rates decreed by the Central Bank, because “it is a good time to borrow reasonably, and project your long-term debt "

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