The association representing multiple banks added that RD$7,822 million (4.7%) was intended for the acquisition of a second home or vacation property; meanwhile, loans for the purchase of low-cost housing from a trust amounted to RD$7,172 million (4.3%).
SANTO DOMINGO.- The Dominican Republic's Association of Multiple Banks (ABA) reported today that at the close of 2021, the financing portfolio destined for the acquisition and remodeling of homes totaled RD$167,415 million, a figure that implied a growth of 12.1%, equivalent to RD$18,033 million more than the previous period.
The ABA detailed that this credit segment of multiple banking went from RD$149,382 million in December 2020 to RD$167,415 million in December 2021.
The association stated that a total of 72,647 credit operations were registered, with an increase of 4,182 new loan applications during the last year, according to an analysis by the entity based on data from the Superintendency of Banks.
“One element to highlight is that approximately nine out of ten loans (89.7%) were intended for the purchase of homes by the debtor, with a total of RD$150,220 million,” the ABA stated in a press release.
The association representing multiple banks added that RD$7,822 million (4.7%) was intended for the acquisition of a second home or vacation property; meanwhile, loans for the purchase of low-cost housing from a trust amounted to RD$7,172 million (4.3%).
Meanwhile, loans for home renovations totaled RD$1,969 million (1.2%) and those for construction or renovation of second homes or vacation homes totaled RD$232 million (0.1%), the ABA reported.
He highlighted that multiple banks represent 66% of the total mortgage portfolio of the financial system, which constitutes evidence of the contribution and importance that banks give to improving the quality of life of financial users and reducing the housing deficit in the Dominican Republic.
In that regard, the association specified that financing for home purchases and renovations increased by 41.3% in the last five years, reaching RD$48.928 billion. Consequently, the loan portfolio grew from RD$118.488 billion in 2017 to RD$167.415 billion at the end of 2021
