BanReservas lowers mortgage interest rates

SANTO DOMINGO. The Reserve Bank of the Dominican Republic (BanReservas) announces a reduction of 0.62% on their mortgage rates for their clients beginning today. This will be reflected in the monthly payments on housing loans and other loans involving properties.

Daniel Toribio, the administrator of the entity, said that with this measure the bank is contributing to a real increase in a family's income, since they have to put less of their resources into the payment of the monthly mortgage bill. He referred to the lower interest rates for mortgage loans as a reflection of the economic stability and a demonstration that there are ideal conditions for the expansion of the real estate sector in this country.

He said that this is the second reduction of interest rates announced by BanReservas so far this year, since in February they announced a 3.56% decrease in rates.

Toribio said that the new rate is due to the reduction in the nominal active interest rates of the first half. The current interest rates for the second half of the year means that if one of the bank's clients is paying 13% on a mortgage loan, from now on this will go down to 12.38%.