The Housing Finance System

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    A. Primary Housing Finance Market

    A.1 Industry Structure and Performance
    VariableEnd of 2017End of 2016End of 2015SourcesVar ID
    Number of firms originating and funding mortgage loans262625
    Superintendencia del Sistema Financiero El Salvador: https://ssf.gob.sv/cartera-de-prestamos/
    		A.1.1
    Types of originating lenders/market share:A.1.2
    Universal/ commercial banks53.85% of total53.85% of total56% of totalA.1.2.1
    Other depository institutions (savings and loans/mutual savings and credit institutions)46.15% of total46.15% of total44% of totalA.1.2.2
    Identify the 3 largest loan originating lendersBanco Agricola, Banco Davivienda Salvadoreño, Banco de America CentralBanco Agricola, Banco Davivienda Salvadoreño, Scotiabank El SalvadorScotiabank El Salvador, Banco Agricola, Banco de America CentralA.1.3
    Are there (quasi) public mortgage lenders:YesYesYesA.1.4
    Level of Non-Performing Mortgage Loans (90 days or more past due):A.1.6
    Average 1997-2007 A.1.7
    A.2 Size of Mortgage Finance Sector
    VariableEnd of 2017End of 2016End of 2015SourcesVar ID
    Total amount of home mortgage loans outstanding at the end of year in millions of USD:3,538.68 USD (millions) 3,430.49 USD (millions)
    Superintendencia del Sistema Financiero El Salvador: https://ssf.gob.sv/cartera-de-prestamos/
    		A.2.1
    Total amount of home mortgage loans outstanding at the end of year as % of GDP (current)12.63% 13.17%
    Superintendencia del Sistema Financiero El Salvador: https://ssf.gob.sv/cartera-de-prestamos/
    		A.2.1.1
    and as % of all credits outstanding27.22% 29.11%A.2.1.2
    What % of total new mortgages is refinance?3.57% 3.77%
    Superintendencia del Sistema Financiero El Salvador: https://ssf.gob.sv/cartera-de-prestamos/
    		A.2.5
    A.3 Housing Finance Products
    VariableEnd of 2017End of 2016End of 2015SourcesVar 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
    Typical lender fees associated with mortgage origination: A.3.6
    Typical third party fees associated with mortgage origination:A.3.7
    Title related fees.63 USD .63 USD .63 USD A.3.7.2
    Legal fees.43 USD .43 USD .43 USD A.3.7.3
    Search fees5 USD 5 USD 5 USD A.3.7.4
    Loan-to-Value (LTV) on first mortgage: A.3.8
    Maximum LTV909090
    Scotiabank and Banco Agricola
    		A.3.8.1
    Typical LTV at origination  90%
    Superintendencia del Sistema Financiero, Scotiabank El Salvador, S.A., Banco Agrícola, S.A., Banco HSBC Salvadoreño, S.A., and Banco de America Central, S.A..
    		A.3.8.2
    Maximum term over which pmt is calculated? 30 years30 years30 yearsA.3.9
    Mortgage pmt-to-income ratio A.3.10
    A.4 Lending and Servicing Process
    VariableEnd of 2017End of 2016End of 2015SourcesVar ID
    Which institutions define underwriting rules? A.4.2
    A.5 Credit Risk Assessment
    VariableEnd of 2017End of 2016End of 2015SourcesVar ID
    Do credit bureaus exist? YesYesYesA.5.2
    Are there legal/regulatory constraints to gaining access to credit information?YesYesYesA.5.2.1
    Is mortgage default insurance available?NoNoNoA.5.3
    B. Funding Sources for Mortgages and the Secondary Mortgage Market
    VariableEnd of 2017End of 2016End of 2015SourcesVar ID
    What are the main funding sources for mortgages?B.1
    Retail funding (deposits/other)primaryprimaryprimaryB.1.1
    Funding through securitization of mortgagestertiarytertiarytertiaryB.1.4
    Other secondarysecondarysecondaryB.1.5
    C. Housing Microfinance
    VariableEnd of 2017End of 2016End of 2015SourcesVar ID
    Types of lenders operating in the housing micro-finance (HMF) sector:C.2
    Level of NPLs (>90 days past due) in HMFC.4
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    Notes: "There are also credit-subsidy options with a savings component, based on household income level."
    Notes: "There are also credit-subsidy options with a savings component, based on household income level."
    Notes: "There are also credit-subsidy options with a savings component, based on household income level."
    Notes: "There are also credit-subsidy options with a savings component, based on household income level."
    Notes: "There are also credit-subsidy options with a savings component, based on household income level."
    Notes: "There are also credit-subsidy options with a savings component, based on household income level."
    Notes: "There are also credit-subsidy options with a savings component, based on household income level."
    Notes: "There are also credit-subsidy options with a savings component, based on household income level." 
    Notes: "There are also credit-subsidy options with a savings component, based on household income level."  
    Notes: $2,148.1M from Banks, and $844.6M from FSV.
    Notes: $2,180.5M from Banks, $855.0M from FSV, and $115.7M from Cooperative Banks and Savings and Credit Societies.
    Notes: $2,338.0M from Banks, $851.0M from FSV, and $130.7M from Cooperative Banks and Savings and Credit Societies.
    Notes: $2,391.0M from Banks, $908.5M from FSV, and $131.0M from Cooperative Banks and Savings and Credit Societies.
    Notes: $2,455.3M from Banks, $945.6M from FSV, and $137.8M from Cooperative Banks and Savings and Credit Societies.
    Notes: $2265.6M from Banks, $845.5M from FSV, and $123.6M from Cooperative Banks and Savings and Credit Societies. FSV figure from January 2014, as opposed to December 2013.
    Notes: Capital gains earned by non-residents from selling property in El Salvador are taxed at a flat rate of 10%.
    Notes: Capital gains earned by non-residents from selling property in El Salvador are taxed at a flat rate of 10%.
    Notes: Capital gains earned by non-residents from selling property in El Salvador are taxed at a flat rate of 10%.
    Notes: Capital gains earned by non-residents from selling property in El Salvador are taxed at a flat rate of 10%.
    Notes: Capital gains earned by non-residents from selling property in El Salvador are taxed at a flat rate of 10%. 
    Notes: Capital gains earned by non-residents from selling property in El Salvador are taxed at a flat rate of 10%.  
    Notes: El Salvador has anti-usury laws, and the central government caps interest rates for various financial products scaled to market rates.
    Notes: El Salvador has anti-usury laws, and the central government caps interest rates for various financial products scaled to market rates.
    Notes: El Salvador has anti-usury laws, and the central government caps interest rates for various financial products scaled to market rates.
    Notes: El Salvador has anti-usury laws, and the central government caps interest rates for various financial products scaled to market rates.
    Notes: El Salvador has anti-usury laws, and the central government caps interest rates for various financial products scaled to market rates. 
    Notes: El Salvador has anti-usury laws, and the central government caps interest rates for various financial products scaled to market rates.  
    Notes: Fee for registration is USD 0.63% of total value of the property. Transfer tax of 3% on the excess of USD 28,571.43 is paid directly to the Ministry of Finance, or any authorized bank, based on a request made by the Notary.
    Notes: Fee for registration is USD 0.63% of total value of the property. Transfer tax of 3% on the excess of USD 28,571.43 is paid directly to the Ministry of Finance, or any authorized bank, based on a request made by the Notary.
    Notes: Fee for registration is USD 0.63% of total value of the property. Transfer tax of 3% on the excess of USD 28,571.43 is paid directly to the Ministry of Finance, or any authorized bank, based on a request made by the Notary.
    Notes: Fee for registration is USD 0.63% of total value of the property. Transfer tax of 3% on the excess of USD 28,571.43 is paid directly to the Ministry of Finance, or any authorized bank, based on a request made by the Notary.
    Notes: Fee for registration is USD 0.63% of total value of the property. Transfer tax of 3% on the excess of USD 28,571.43 is paid directly to the Ministry of Finance, or any authorized bank, based on a request made by the Notary. 
    Notes: Fee for registration is USD 0.63% of total value of the property. Transfer tax of 3% on the excess of USD 28,571.43 is paid directly to the Ministry of Finance, or any authorized bank, based on a request made by the Notary.  
    Notes: Fondo Social de Vivienda (FSV), or the Social Housing Fund, offers subsidized mortgages at lower than market rates.
    Notes: Fondo Social de Vivienda (FSV), or the Social Housing Fund, offers subsidized mortgages at lower than market rates.
    Notes: Fondo Social de Vivienda (FSV), or the Social Housing Fund, offers subsidized mortgages at lower than market rates.
    Notes: Fondo Social de Vivienda (FSV), or the Social Housing Fund, offers subsidized mortgages at lower than market rates.
    Notes: Fondo Social de Vivienda (FSV), or the Social Housing Fund, offers subsidized mortgages at lower than market rates.
    Notes: Fondo Social de Vivienda (FSV), or the Social Housing Fund, offers subsidized mortgages at lower than market rates.
    Notes: Fondo Social de Vivienda (FSV), or the Social Housing Fund, offers subsidized mortgages at lower than market rates. 
    Notes: Fondo Social de Vivienda (FSV), or the Social Housing Fund, offers subsidized mortgages at lower than market rates.  
    Notes: For loans with one year or less term, the lending rate is 12.38%.
    Notes: Government has allocated special funds for the creation of several institutions involved in El Salvador's housing sector such as the Social Housing Fund (FSV), the National Fund for Social Housing (FONAVIPO) and the Multisector Investment Bank (BMI). The resources of FSV are constituted by: (A) An initial State subsidy of $2,857,142.86 and $3,778,285.72, received in 1995. (B) Employers and workers' contributions received since its inception until April 30, 1998, which was replaced in favor of a new Pension Savings System. These are recorded in Individual Accounts. (C) Other income obtained by any title.
    Notes: Government has allocated special funds for the creation of several institutions involved in El Salvador's housing sector such as the Social Housing Fund (FSV), the National Fund for Social Housing (FONAVIPO) and the Multisector Investment Bank (BMI). The resources of FSV are constituted by: (A) An initial State subsidy of $2,857,142.86 and $3,778,285.72, received in 1995. (B) Employers and workers' contributions received since its inception until April 30, 1998, which was replaced in favor of a new Pension Savings System. These are recorded in Individual Accounts. (C) Other income obtained by any title. 
    Notes: Government has allocated special funds for the creation of several institutions involved in El Salvador's housing sector such as the Social Housing Fund (FSV), the National Fund for Social Housing (FONAVIPO) and the Multisector Investment Bank (BMI). The resources of FSV are constituted by: (A) An initial State subsidy of $2,857,142.86 and $3,778,285.72, received in 1995. (B) Employers and workers' contributions received since its inception until April 30, 1998, which was replaced in favor of a new Pension Savings System. These are recorded in Individual Accounts. (C) Other income obtained by any title.
    Notes: Government has allocated special funds for the creation of several institutions involved in El Salvador's housing sector such as the Social Housing Fund (FSV), the National Fund for Social Housing (FONAVIPO) and the Multisector Investment Bank (BMI). The resources of FSV are constituted by: (A) An initial State subsidy of $2,857,142.86 and $3,778,285.72, received in 1995. (B) Employers and workers' contributions received since its inception until April 30, 1998, which was replaced in favor of a new Pension Savings System. These are recorded in Individual Accounts. (C) Other income obtained by any title.
    Notes: Government has allocated special funds for the creation of several institutions involved in El Salvador's housing sector such as the Social Housing Fund (FSV), the National Fund for Social Housing (FONAVIPO) and the Multisector Investment Bank (BMI). The resources of FSV are constituted by: (A) An initial State subsidy of $2,857,142.86 and $3,778,285.72, received in 1995. (B) Employers and workers' contributions received since its inception until April 30, 1998, which was replaced in favor of a new Pension Savings System. These are recorded in Individual Accounts. (C) Other income obtained by any title.
    Notes: Government has allocated special funds for the creation of several institutions involved in El Salvador's housing sector such as the Social Housing Fund (FSV), the National Fund for Social Housing (FONAVIPO) and the Multisector Investment Bank (BMI). The resources of FSV are constituted by: (A) An initial State subsidy of $2,857,142.86 and $3,778,285.72, received in 1995. (B) Employers and workers' contributions received since its inception until April 30, 1998, which was replaced in favor of a new Pension Savings System. These are recorded in Individual Accounts. (C) Other income obtained by any title.
    Notes: Government has allocated special funds for the creation of several institutions involved in El Salvador's housing sector such as the Social Housing Fund (FSV), the National Fund for Social Housing (FONAVIPO) and the Multisector Investment Bank (BMI). The resources of FSV are constituted by: (A) An initial State subsidy of $2,857,142.86 and $3,778,285.72, received in 1995. (B) Employers and workers' contributions received since its inception until April 30, 1998, which was replaced in favor of a new Pension Savings System. These are recorded in Individual Accounts. (C) Other income obtained by any title.
    Notes: Government has allocated special funds for the creation of several institutions involved in El Salvador's housing sector such as the Social Housing Fund (FSV), the National Fund for Social Housing (FONAVIPO) and the Multisector Investment Bank (BMI). The resources of FSV are constituted by: (A) An initial State subsidy of $2,857,142.86 and $3,778,285.72, received in 1995. (B) Employers and workers' contributions received since its inception until April 30, 1998, which was replaced in favor of a new Pension Savings System. These are recorded in Individual Accounts. (C) Other income obtained by any title.
    Notes: In 2011, according to the Superintendencia del Sistema Financiero, three of the five banks which had the largest share of the mortgage market include--Scotiabank, Banco Agricola, and Banco HSBC Salvadoreño, all have a maximum 90% LTV ratio. Banco de America Central, S.A., which had the fourth largest share of the mortgage market, has a maximum 85% LTV ratio.
    Notes: Interest rate in USD, Annual: 360 days
    Notes: Interest rate in USD, Annual: 360 days
    Notes: Interest rate in USD, Annual: 360 days
    Notes: Interest rate in USD, Annual: 360 days
    Notes: Interest rate in USD, Annual: 360 days
    Notes: Interest rate in USD, Annual: 360 days
    Notes: Interest rate in USD, Annual: 360 days
    Notes: Interest rate in USD, Annual: 360 days
    Notes: Interest rate in USD, Annual: 360 days
    Notes: Interest rate in USD, Annual: 360 days
    Notes: Interest rate in USD, Annual: 360 days
    Notes: Interest rate in USD, Annual: 360 days
    Notes: Interest rate in USD, Annual: 360 days
    Notes: Interest rate in USD, Annual: 360 days
    Notes: Interest rate in USD, Annual: 360 days
    Notes: Interest rate in USD, Annual: 360 days
    Notes: Interest rate in USD, Annual: 360 days
    Notes: Interest rate in USD, Annual: 360 days
    Notes: Interest rate in USD, Annual: 360 days 
    Notes: Interest rate in USD, Annual: 360 days 
    Notes: Interest rate in USD, Annual: 360 days  
    Notes: Interest rate in USD, Annual: 360 days  
    Notes: Legal framework established for mortgage securitization but has not developed and is trivial to the overall mortgage market.
    Notes: Legal framework established for mortgage securitization but has not developed and is trivial to the overall mortgage market.
    Notes: Legal framework established for mortgage securitization but has not developed and is trivial to the overall mortgage market.
    Notes: Legal framework established for mortgage securitization but has not developed and is trivial to the overall mortgage market.
    Notes: Legal framework established for mortgage securitization but has not developed and is trivial to the overall mortgage market.
    Notes: Legal framework established for mortgage securitization but has not developed and is trivial to the overall mortgage market.
    Notes: Legal framework established for mortgage securitization but has not developed and is trivial to the overall mortgage market. 
    Notes: Legal framework established for mortgage securitization but has not developed and is trivial to the overall mortgage market. 
    Notes: Owners paying in installments
    Notes: Property insurance is obsolete because of the weak credit registry system. Likely also applies to mortgage default insurance.
    Notes: Property insurance is obsolete because of the weak credit registry system. Likely also applies to mortgage default insurance. 
    Notes: Property insurance is obsolete because of the weak credit registry system. Likely also applies to mortgage default insurance.  
    Notes: Rate listed is for loans over 1-year term. For loans with one year or less term, the lending rate is 10.38%.
    Notes: Rate listed is for loans over 1-year term. For loans with one year or less term, the lending rate is 10.74%.
    Notes: Rate listed is for loans over 1-year term. For loans with one year or less term, the lending rate is 10.80%.
    Notes: Rate listed is for loans over 1-year term. For loans with one year or less term, the lending rate is 12.52%.
    Notes: Rate listed is for loans over 1-year term. For loans with one year or less term, the lending rate is 6.30%.
    Notes: Rate listed is for loans over 1-year term. For loans with one year or less term, the lending rate is 6.58%.
    Notes: Rate listed is for loans over 1-year term. For loans with one year or less term, the lending rate is 6.87%.
    Notes: Rate listed is for loans over 1-year term. For loans with one year or less term, the lending rate is 7.14%.
    Notes: Rate listed is for loans over 1-year term. For loans with one year or less term, the lending rate is 7.52%.
    Notes: Rate listed is for loans over 1-year term. For loans with one year or less term, the lending rate is 7.81%.
    Notes: Rate listed is for loans over 1-year term. For loans with one year or less term, the lending rate is 7.87%.
    Notes: Rate listed is for loans over 1-year term. For loans with one year or less term, the lending rate is 9.60%.
    Notes: Rate listed is for loans over 1-year term. For loans with one year or less term, the lending rate is 9.93%.
    Notes: Rate listed is for loans over 1-year term. The lending rate for mortgages is 7.35%. For loans with one year or less term, the lending rate is 5.6%.
    Notes: Rate listed is for loans over 1-year term. The lending rate for mortgages is 7.53%. For loans with one year or less term, the lending rate is 5.74%.  
    Notes: Rate listed is for loans over 1-year term. The lending rate for mortgages is 7.53%. For loans with one year or less term, the lending rate is 5.99%.  
    Notes: Rate listed is for loans over 1-year term. The lending rate for mortgages is 7.62%. For loans with one year or less term, the lending rate is 6.16%.  
    Notes: Rate listed is for loans over 1-year term. The lending rate for mortgages is 7.63%. For loans with one year or less term, the lending rate is 6.47%. 
    Notes: Rate listed is for loans over 1-year term. The lending rate for mortgages is 7.67%. For loans with one year or less term, the lending rate is 6.37%.  
    Notes: Rate listed is for loans over 1-year term. The lending rate for mortgages is 7.76%. For loans with one year or less term, the lending rate is 5.99%.
    Notes: Rate listed is for loans over 1-year term. The lending rate for mortgages is 8.48%. For loans with one year or less term, the lending rate is 7.62%.
    Notes: Rate listed is for loans over 1-year term. The lending rate for mortgages is 8.66%. For loans with one year or less term, the lending rate is 9.31%.
    Notes: Registering a property takes on average of five steps over a period of 31 days, and costs 3.8% of the reported value of the property.
    Notes: Registering a property takes on average of five steps over a period of 31 days, and costs 3.8% of the reported value of the property.
    Notes: Registering a property takes on average of five steps over a period of 31 days, and costs 3.8% of the reported value of the property.
    Notes: Registering a property takes on average of five steps over a period of 31 days, and costs 3.8% of the reported value of the property.
    Notes: Registering a property takes on average of five steps over a period of 31 days, and costs 3.8% of the reported value of the property.
    Notes: Registering a property takes on average of five steps over a period of 31 days, and costs 3.8% of the reported value of the property. 
    Notes: Registering a property takes on average of five steps over a period of 31 days, and costs 3.8% of the reported value of the property.  
    Notes: The Multi-Sector Investment Bank (BMI) was created in 1994 to allocate housing funding mainly to private banks and is responsible for a secondary mortgage development plan started in 2003.
    Notes: The Multi-Sector Investment Bank (BMI) was created in 1994 to allocate housing funding mainly to private banks and is responsible for a secondary mortgage development plan started in 2003.
    Notes: The Multi-Sector Investment Bank (BMI) was created in 1994 to allocate housing funding mainly to private banks and is responsible for a secondary mortgage development plan started in 2003.
    Notes: The Multi-Sector Investment Bank (BMI) was created in 1994 to allocate housing funding mainly to private banks and is responsible for a secondary mortgage development plan started in 2003.
    Notes: The Multi-Sector Investment Bank (BMI) was created in 1994 to allocate housing funding mainly to private banks and is responsible for a secondary mortgage development plan started in 2003.
    Notes: The Multi-Sector Investment Bank (BMI) was created in 1994 to allocate housing funding mainly to private banks and is responsible for a secondary mortgage development plan started in 2003.
    Notes: The Multi-Sector Investment Bank (BMI) was created in 1994 to allocate housing funding mainly to private banks and is responsible for a secondary mortgage development plan started in 2003. 
    Notes: The Multi-Sector Investment Bank (BMI) was created in 1994 to allocate housing funding mainly to private banks and is responsible for a secondary mortgage development plan started in 2003.  
    Notes: The Social Housing Fund (FSV) offers subsidized mortgages with lower than market interest rates. The National Fund for Popular Housing (FONAVPI) was created as a public second-floor credit institution, aimed to finance less-than-four-times the minimum wage households, with more favorable credit conditions.
    Notes: The Social Housing Fund (FSV) offers subsidized mortgages with lower than market interest rates. The National Fund for Popular Housing (FONAVPI) was created as a public second-floor credit institution, aimed to finance less-than-four-times the minimum wage households, with more favorable credit conditions.
    Notes: The Social Housing Fund (FSV) offers subsidized mortgages with lower than market interest rates. The National Fund for Popular Housing (FONAVPI) was created as a public second-floor credit institution, aimed to finance less-than-four-times the minimum wage households, with more favorable credit conditions.
    Notes: The Social Housing Fund (FSV) offers subsidized mortgages with lower than market interest rates. The National Fund for Popular Housing (FONAVPI) was created as a public second-floor credit institution, aimed to finance less-than-four-times the minimum wage households, with more favorable credit conditions.
    Notes: The Social Housing Fund (FSV) offers subsidized mortgages with lower than market interest rates. The National Fund for Popular Housing (FONAVPI) was created as a public second-floor credit institution, aimed to finance less-than-four-times the minimum wage households, with more favorable credit conditions.
    Notes: The Social Housing Fund (FSV) offers subsidized mortgages with lower than market interest rates. The National Fund for Popular Housing (FONAVPI) was created as a public second-floor credit institution, aimed to finance less-than-four-times the minimum wage households, with more favorable credit conditions.
    Notes: The Social Housing Fund (FSV) offers subsidized mortgages with lower than market interest rates. The National Fund for Popular Housing (FONAVPI) was created as a public second-floor credit institution, aimed to finance less-than-four-times the minimum wage households, with more favorable credit conditions.
    Notes: The Social Housing Fund (FSV) offers subsidized mortgages with lower than market interest rates. The National Fund for Popular Housing (FONAVPI) was created as a public second-floor credit institution, aimed to finance less-than-four-times the minimum wage households, with more favorable credit conditions. 
    Notes: The Social Housing Fund (FSV) offers subsidized mortgages with lower than market interest rates. The National Fund for Popular Housing (FONAVPI) was created as a public second-floor credit institution, aimed to finance less-than-four-times the minimum wage households, with more favorable credit conditions.  
    Notes: Value given as a percentage of property value (0.63% of property value).
    Notes: Value given as a percentage of property value (0.63% of property value). 
    Notes: Value given as a percentage of property value (0.63% of property value).  
    Notes: Value given as a percentage of property value (Notary fee ranges from 0.15%-1% of property value).
    Notes: Value given as a percentage of property value (Notary fee ranges from 0.15%-1% of property value). 
    Notes: Value given as a percentage of property value (Notary fee ranges from 0.15%-1% of property value).  
    Notes: Value given as a percentage of property value (Real estate agent fee is around 5% of property value).
    Notes: Value given as a percentage of property value (Real estate agent fee is around 5% of property value). 
    Notes: Value given as a percentage of property value (Real estate agent fee is around 5% of property value).