Procedures and requirements for mortgage credit in Ecuador

Mortgage loans in Ecuador are granted by the Banco de Instituto Ecuatoriano de Seguridad Social, also known as BIESS for the acquisition of personal property as well as homes, buildings and/or land, offices, commercial premises, for the improvement and/or expansion of the same.

In order for a person to obtain a home in Ecuador through a mortgage loan, they must comply with the following procedures and credit requirements.

The housing or furniture must be of a social nature up to $40,000 USD, it could also be public interest housing up to $70,000 USD, in which the value per square meter (m2) must not exceed $890 USD; In case of being a new home from the first owner, its weight may not be greater than 50% of the total heat of the home.

After the acquisition of the mortgage loan, the insured will have the power to choose in how long they will cancel the debt, in a period not exceeding 25 years.

Mortgage loan requirements

1. In case of being an active member, you must have at least 36 contributions where the last 12 must be consecutive.
2. If the insured is retired, they must be receiving the benefit and enjoy the pension accordingly.
3. The employer and the affiliate must be solvent with the obligations in the less, Biess and other institutions of the financial system.
4. You must present the certified and sworn statement where you specify that the beneficiary does not own any home and that the property you wish to acquire will be for family use; You will also have to present the declaration of marital partnership declared in case it is so.
5. Each of the parties must present the affidavit.
6. Certificate of the property registry in which it is indicated that the benefited party does not own a home within the location cardboard where the property to be acquired is located.

Requirements for dependent members

1. In case of being an active member, you must have at least 36 contributions where the last 12 must be consecutive.
2. In case of being a legal representative of a company, you must have your obligations up to date with the corresponding entities as the case may be.
3. The affiliate must be within the permitted age range, which is up to 75 years of age, and not be registered as a voluntary affiliate.
4. The current employer of the beneficiary does not belong to the peasant social security or to the harvest.
5. Not having a mortgage loan under the modality of purchase or portfolio rediscount with the Biess or the IESS.
6. Not having a mortgage loan application for finished housing in process; nor for housing construction in process; nor have a mortgage loan application for mortgage replacement, nor land acquisition, nor land under construction, nor application for real estate acquisition credit.
7. Not have loans in the IESS or Biess in arrears.
8. They must have current unsecured loans with the IESS that are granted through the old IESS system.
9. The affiliate must not be registered in the IESS database with any degenerative disease.
10. And finally you must pass the qualification accredited by Biess.

Mortgage loan requirements

1. In case of being an active member, you must have at least 36 contributions where the last 12 must be consecutive.
2. If the insured is retired, they must be receiving the benefit and enjoy the pension accordingly.
3. The employer and the affiliate must be solvent with the obligations in the less, Biess and other institutions of the financial system.
4. You must present the certified and sworn statement where you specify that the beneficiary does not own any home and that the property you wish to acquire will be for family use; You will also have to present the declaration of marital partnership declared in case it is so.
5. Each of the parties must present the affidavit.
6. Certificate of the property registry in which it is indicated that the benefited party does not own a home within the location cardboard where the property to be acquired is located.

Requirements for dependent members.

1. In case of being an active member, you must have at least 36 contributions where the last 12 must be consecutive.
2. In case of being a legal representative of a company, you must have your obligations up to date with the corresponding entities as the case may be.
3. The affiliate must be within the permitted age range, which is up to 75 years of age, and not be registered as a voluntary affiliate.
4. The current employer of the beneficiary does not belong to the peasant social security or to the harvest.
5. Not having a mortgage loan under the modality of purchase or portfolio rediscount with the Biess or the IESS.
6. Not having a mortgage loan application for finished housing in process; nor for housing construction in process; nor have a mortgage loan application for mortgage replacement, nor land acquisition, nor land under construction, nor application for real estate acquisition credit.
7. Not have loans in the IESS or Biess in arrears.
8. They must have current unsecured loans with the IESS that are granted through the old IESS system.
9. The affiliate must not be registered in the IESS database with any degenerative disease.
10. And finally you must pass the qualification accredited by Biess.

Steps to follow

First, it is necessary for the affiliate to verify if he meets the aforementioned requirements, if not, he must organize himself to comply with the precautions and requirements described above, once he is able to complete them, the following is the selection of the property he wishes to acquire and verify if it meets with the established Subsequently, you must group each necessary document in a folder so that you must deposit it in the Bank of the Ecuadorian Social Security Institute, complete the necessary forms and wait for the Bank to carry out the pertinent study in which it will establish if the affiliate meets the requirements to grant you the credit. required.

How long does credit approval take?

The Banco de Instituto Ecuatoriano de Seguro Social takes about 45 business days to review and analyze the documents that the affiliate submits to opt for the mortgage loan, after which the beneficiary receives a response from the agency that describes whether or not he meets the requirements. for the granting of credit, and immediately the money if the credit was approved.

What are the payment terms?

The beneficiary has from 10 years to 25 years to cancel the credit debt.

The payment method chosen by the common denominator of the affiliates is a fixed term, that is, it corresponds to the credit fee that they can afford taking into account their monthly income, however, the advisors recommend acquiring a term of not less than 15 years. because despite the fact that this increases the installments that the citizen must pay monthly, it allows him to reduce the value of the interest generated by the long-term debt.

Who applies for the credit?

People who apply for the acquisition of a mortgage loan with those who have any of the following conditions:

Suggestions and recommendations.

Among the documents that the affiliate submits must be the credit application with the municipal tax payment letter and in which the name and data of the person who will assume the tax payments must be specified.

During the process, the Bank may request any additional document that they deem necessary to continue with the process, according to the type of loan requested and the geographic location of the home.

You can follow the process that it gives you by entering the “ pH SYSTEM “with your ID and password.

If you need information or help from an advisor, you can write to this email address ayudaph@biess.fin.ec or contact us by free service at 1800- BIESS7 (1800-243777) option 4.

Benefits

Mortgage loans are debts that must be paid off in the long term, however they facilitate the acquisition of goods that allow us to satisfy our needs.

Dear reader, consider each of the aspects specified here when applying for a mortgage loan.