Mortgages: the most expensive decision of your life
It's the cheapest credit in the Colombian market — banks run 10.5% to 13.5% E.A. in pesos — and also the longest: 15–20 years is common, up to 30 on some products. Half a point over 20 years on 200 million pesos is easily 15 million pesos of difference.
The distinctly Colombian decision: pesos or UVR. In pesos the instalment is fixed and you sleep soundly to the last payment. In UVR you start with a lower instalment, but the balance is indexed to inflation — in high-CPI years the debt grows even as you pay. If your income is steady and you'll hold the loan long-term, most people sleep better in pesos; UVR makes sense if you plan aggressive principal payments in the early years.
Two more pieces on the board: leasing habitacional (the bank buys the home and rents it to you with a purchase option — financing higher percentages with less down payment, in exchange for the house not being yours until the end) and the VIS/VIP price caps, which open the door to special rates if the property fits under the limit. An apartment barely above the VIS cap can cost more per month than a slightly pricier one that qualifies. The FNA, if your severance savings sit there, joins the comparison with rates commercial banks rarely match.
- ✓Common terms: 60 to 240 months
- ✓Down payment: 20–30% (banks finance 70–80%)
- ✓Peso rates: 10.5–13.5% E.A. in 2026 offers
- ✓Pesos vs UVR: fixed instalment vs inflation-indexed balance