Comparing a 5.73% fixed mortgage quote in Buenos Aires

[teaAndPath]

I’m considering a five-bedroom property in Buenos Aires priced around ARS 950,600,000. The mortgage quote is 5.73% fixed for 30 years, but the advertised rate was lower; arrangement fees and the applicable loan-to-value tier changed the comparison.

For recent Argentina financing, would you compare APR, total interest, or all cash costs over the period you realistically expect to keep the loan? I’m also trying to assess monthly affordability, portability and early-repayment terms. The headline rate looks best, but the total cost does not.

 

[uma_dawn]

I’d compare total cash cost over your likely holding period, not automatically over all 30 years. Include upfront fees, scheduled payments and any cost of repaying when you expect to sell or refinance. APR is useful as an initial comparison only when lenders calculate it on consistent assumptions.

Do you know how long you realistically expect to keep this mortgage?

 

[ZiaPage]

Before doing that comparison, confirm exactly what “fixed” covers. Is the loan balance denominated in pesos throughout, are the payments fully fixed, and is there any indexation or adjustment mechanism outside the stated 5.73%? Those details can matter more than a modest difference in arrangement fees. I would not rely on the headline wording alone.

 

[timo_budgets]

I slightly disagree about pushing APR into the background: it is still a useful way to eliminate obviously expensive quotes, provided the loan amount, term and fee treatment are identical. Then build a simple spreadsheet for perhaps three outcomes: keep the loan for 30 years, repay earlier, or refinance. Show upfront cash, monthly payments, remaining balance and any repayment charge at each point. Treat portability as flexibility rather than guaranteed savings, since a future move may not meet the lender’s conditions.