The Housing Finance System

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    A. Primary Housing Finance Market

    A.1 Industry Structure and Performance
    VariableEnd of 2015End of 2014End of 2013SourcesVar ID
    Types of originating lenders/market share:A.1.2
    Level of Non-Performing Mortgage Loans (90 days or more past due):A.1.6
    as a % of outstanding loan amount 1.3%1.2%A.1.6.2
    Average 1997-2007 A.1.7
    A.2 Size of Mortgage Finance Sector
    VariableEnd of 2015End of 2014End of 2013SourcesVar ID
    Total amount of home mortgage loans outstanding at the end of year in millions of USD:578.83 USD (millions)504.96 USD (millions)439.41 USD (millions)A.2.1
    Total amount of home mortgage loans outstanding at the end of year as % of GDP (current)4.74%4.28%4.05%A.2.1.1
    and as % of all credits outstanding13.05%13.34%13.2%A.2.1.2
    A.3 Housing Finance Products
    VariableEnd of 2015End of 2014End of 2013SourcesVar ID
    Mortgage products as % of all mortgages (approx.) in local currency:A.3.1
    Most prevalent type of foreign currency mortgage used:A.3.3
    Most frequent interest rates on fully amortizing:A.3.4
    10 year fixed rate mortgage  9.5%
    BAC Nicaragua
    		A.3.4.1
    Typical lender fees associated with mortgage origination: A.3.6
    Fixed in amount 15 USD   A.3.6.1
    as % of loan amount.75%  
    Banco LAFISE
    		A.3.6.2
    Typical third party fees associated with mortgage origination:A.3.7
    Loan-to-Value (LTV) on first mortgage: A.3.8
    Maximum LTV909080
    Banco de Finanzas and Banco Lafise
    		A.3.8.1
    Maximum term over which pmt is calculated? 25 years25 years15 years
    Banco de Finanzas
    		A.3.9
    Mortgage pmt-to-income ratio A.3.10
    A.4 Lending and Servicing Process
    VariableEnd of 2015End of 2014End of 2013SourcesVar ID
    Which institutions define underwriting rules? A.4.2
    A.5 Credit Risk Assessment
    VariableEnd of 2015End of 2014End of 2013SourcesVar ID
    Do credit bureaus exist? YesYesYes
    TransUnion
    		A.5.2
    Are there legal/regulatory constraints to gaining access to credit information?NoNoNo
    Doing Business
    		A.5.2.1
    B. Funding Sources for Mortgages and the Secondary Mortgage Market
    VariableEnd of 2015End of 2014End of 2013SourcesVar ID
    What are the main funding sources for mortgages?B.1
    Retail funding (deposits/other)primaryprimaryprimaryB.1.1
    Wholesale funding: loans from other banks or corporations  Non-applicable
    SIBOIF
    		B.1.2
    Funding through mortgage bonds   Non-applicable
    SIBOIF
    		B.1.3
    Funding through securitization of mortgages  Non-applicable
    SIBOIF
    		B.1.4
    Other   Secondary
    FOSOVI
    		B.1.5
    C. Housing Microfinance
    VariableEnd of 2015End of 2014End of 2013SourcesVar ID
    Types of lenders operating in the housing micro-finance (HMF) sector:C.2
    Level of NPLs (>90 days past due) in HMFC.4
    back to top | Country Data:
    Notes: BAC Nicaragua offers fixed interest loans at a rate of 9.5% up to 15 years.
    Notes: BAC Nicaragua offers fixed interest loans at a rate of 9.5% up to 15 years.
    Notes: Exemption of VAT on the purchase of building materials.
    Notes: Exemption of VAT on the purchase of building materials.
    Notes: Exemption of VAT on the purchase of building materials.
    Notes: Exemption of VAT on the purchase of building materials.
    Notes: Exemption of VAT on the purchase of building materials.
    Notes: FOSOVI (Fondo Social de Vivienda) provides subsidies to support housing loans to lower income families although the subsidies remain small accounting for only $4 million annually.
    Notes: IADB "approved a $10M loan to Banco de Finanzas S.A. (BDF), a leading commercial bank in Nicaragua, to finance a pilot housing project that will pave the way for low-income families working in the informal sector to get access to mortgage financing."
    Notes: IADB "approved a $10M loan to Banco de Finanzas S.A. (BDF), a leading commercial bank in Nicaragua, to finance a pilot housing project that will pave the way for low-income families working in the informal sector to get access to mortgage financing."
    Notes: IADB "approved a $10M loan to Banco de Finanzas S.A. (BDF), a leading commercial bank in Nicaragua, to finance a pilot housing project that will pave the way for low-income families working in the informal sector to get access to mortgage financing."
    Notes: IADB "approved a $10M loan to Banco de Finanzas S.A. (BDF), a leading commercial bank in Nicaragua, to finance a pilot housing project that will pave the way for low-income families working in the informal sector to get access to mortgage financing."
    Notes: Lenders who provide the preferential interest rate subsidy for mortgages will be granted a tax credit equivalent to subsidy.
    Notes: Lenders who provide the preferential interest rate subsidy for mortgages will be granted a tax credit equivalent to subsidy.
    Notes: National Percentage. This number includes only owners with deeds, if owners without deeds in the informal housing market are included the owner-occupied rate rises to 84.42%
    Notes: One-time grant of $1500 USD.
    Notes: One-time grant of $1500 USD.
    Notes: One-time grant of $1500 USD.
    Notes: Preferential interest rate subsidy of up to 3.5% on the interest rate for up to 10 years on a mortgage loan that does not exceed $32,000.
    Notes: Preferential interest rate subsidy of up to 3.5% on the interest rate for up to 10 years on a mortgage loan that does not exceed $32,000.
    Notes: Tabla VII-6