Bank Comparison 2026: Rates and Conditions for Your Mortgage
INGAR · · Financing
Mortgage credit in Uruguay: a market with more options than ever
If you are thinking about buying your first home or investing in a property, 2026 greets you with a more competitive mortgage market than in recent years. Rates in Indexed Units (UI) remain at historically low levels, private banks are fighting side by side with the BHU to attract clients, and programs such as the Mortgage Credit Guarantee Fund (FGCH) continue to facilitate access for those with less prior savings.
In our complete guide to mortgage credit we cover the fundamental concepts: how a mortgage loan works, what the UI is, what documentation you need, and how the application process is structured. This article is different: here you will find a bank-by-bank comparison, with detailed tables, real rates, specific requirements, and a practical example with numbers. The goal is for you to be able to sit down with your spreadsheet and make an informed decision.
All information was gathered from official rate sheets and tariffs current as of March 2026. Rates and conditions may change; always verify with the bank before making a decision.
General overview of the Uruguayan mortgage market
Before diving into the comparison, it helps to understand the structure of the market. The Banco Hipotecario del Uruguay (BHU) holds approximately 70% of the country's mortgage loans. It is a state-owned bank specializing in housing, backed by the Uruguayan government. Its main advantage: it finances up to 90% of the property value (or even 100% with the Préstamo Soñado) and offers the lowest rates in the market.
Private banks —Santander, BBVA, Itaú, Scotiabank, and HSBC— have gained ground in recent years by betting on faster processes, less bureaucracy, and quicker approvals. They generally finance between 70% and 85% of the property value, with slightly higher rates but offset by significantly shorter response times.
Available currencies
In Uruguay, mortgage loans are granted primarily in two currencies:
- Indexed Units (UI): This is the most popular option and the one that offers the best rates. The UI is adjusted for inflation (CPI), so the monthly payment in pesos varies each month. However, in real terms, your payment remains stable. This is the recommended option for most buyers.
- US Dollars (USD): Higher rates (between 6% and 8.5%), shorter terms (10 to 20 years), and VAT applies on interest. It is a viable option if you have dollar-denominated income or want to avoid exposure to local inflation, but the total cost is significantly higher.
The BHU also offers loans in Uruguayan pesos, although most of its products are structured in UI.
Rate Comparison TEA in UI — April 2026
The TEA (Annual Effective Rate) is the key indicator for comparison. Unlike the nominal rate, the TEA includes the effect of interest compounding. The lower it is, the less you pay in total. These are the current rates for mortgage loans in Indexed Units:
| Bank | TEA up to 10 years | TEA 10-15 years | TEA 15-20 years | TEA 20-25 years | TEA 25-30 years | Preferential condition |
|---|---|---|---|---|---|---|
| BHU | From 3.75% | From 3.75% | From 4.00% | From 4.50% | — | Saver TEA (Yo Ahorro account with 2,000+ points) |
| Santander | 3.90% | 3.90% | 4.50% | 4.50% | 4.50% | Payroll, Select, University Graduate, Public Employees |
| BBVA | 4.00% | 4.00% | 4.10% | 4.50% | — | Receive salary/pension at BBVA (promo until 06/30/2026) |
| Itaú | 4.00% | 4.00% | 4.15% | — | — | Personal Bank package: 4.00%. Full: 4.15% |
| Scotiabank | 4.15% | 4.15% | 4.50% | 4.50% | — | No prior account required; opened with the application |
| HSBC | 4.75% | 4.75% | 4.75% | 4.75% | — | Premier clients |
Note: BHU rates vary according to the percentage financed, the term, the applicant's income profile, and whether the saver benefit applies. Rates for private banks correspond to their preferential conditions (generally requiring direct deposit of salary). Without that condition, expect between 0.5% and 1% more.
Rates without preferential conditions
If you do not set up direct deposit or meet preferential conditions, rates rise. For example, BBVA goes from 4.00% to 5.00% in the up-to-10-year bracket, and from 4.50% to 5.50% for 20-25 years. Santander, for its part, reserves the 30-year term exclusively for Payroll or Select profiles; for the general public, the maximum term in UI is 20 years.
General conditions — Bank by bank
| Feature | BHU | Santander | BBVA | Itaú | Scotiabank | HSBC |
|---|---|---|---|---|---|---|
| Maximum term (UI) | 25 years | 30 years* | 25 years | 20 years | 20 years | 25 years |
| Maximum term (USD) | — | 20 years | 18 years | 15 years | 15 years | 15 years |
| Max. financing 1st home | Up to 90% (100% Soñado) | Up to 85% | Up to 80% | Up to 80% | Up to 90% | Up to 90% |
| Max. financing 2nd home | — | Up to 70% | Up to 70% | Up to 70% | Up to 75% | Up to 60% |
| Maximum amount (UI) | 2,800,000 UI | No published cap | No published cap | No published cap | No published cap | No published cap |
| Currency | UI / $ / USD | UI / USD | UI / USD | UI / USD | UI / USD | UI / USD |
| Payment/income ratio (UI) | 25% (30% with withholding) | 30% | 30% | 30% | 30% | 30% |
| Payment/income ratio (USD) | — | 20% | 15% | 20% | 20% | 20% |
| Rate type | Fixed | Fixed in UI / Variable in USD | Fixed in UI / Variable in USD | Fixed in UI / Variable in USD | Fixed in UI / Variable in USD | Fixed in UI / Variable in USD |
* Santander offers 30 years exclusively for Payroll, Select, University Professionals, or Public Employee clients. The general public can access up to 20 years.
Income and employment requirements
| Requirement | BHU | Santander | BBVA | Itaú | Scotiabank | HSBC |
|---|---|---|---|---|---|---|
| Minimum income | No fixed minimum published; depends on amount | No fixed minimum published | $ 140,000/month (or equiv.) | USD 2,000 equiv. (household) | $ 50,000 (UI) / $ 100,000 (USD) | $ 60,000/month (household) |
| Employment tenure | Varies by profile | 12 months (employees) | 12 months | 24 months | 24 months | 24 months in labor market + 12 months same employer |
| Age | 18 to 70 years (at start) | 18 to 65 years | Up to 77 at start; 84 at end | 18 to 65 years | 18 to 71 years (at end of loan) | 21 to 65; not to exceed 80 at end |
| Combined income allowed | Yes (spouse/partner) | Yes (spouse and Parent+Child option) | Yes (spouse) | Yes (household) | Yes (spouse) | Yes (primary holder + spouse) |
| Self-employed | Yes, with accounting documentation | Yes, with 24 months of activity | Yes, with 12 months | Yes, with 24 months | Yes, case-by-case evaluation | Yes, with documentation |
Key point: the BHU is the only one that allows the payment to represent just 25% of disposable income (not net income), which can be more restrictive for some profiles. However, it compensates with higher financing and lower rates. Private banks use 30% of net income as the ceiling, which in practice allows access to higher amounts relative to salary.
Associated costs: what the rate does not show you
The TEA is only part of the total cost. There are fees that are added at signing and throughout the life of the loan. Here are the main ones:
| Cost | BHU | Santander | BBVA | Itaú | Scotiabank | HSBC |
|---|---|---|---|---|---|---|
| Administrative fees | Variable | 1% of amount | 1% of amount | 1.5% (min. USD 150, max. USD 500) | 1% of amount | 1% of amount |
| Appraisal | Covered by BHU | No cost | No cost (cap $10,000) | No cost | No cost | Client's expense |
| Notary fees | Variable | ~0.45% + VAT | ~0.45% + VAT | 0.45% + VAT (min. USD 500 + VAT) | ~0.45% + VAT | 0.8% + VAT (min. 12 UR + VAT) |
| Fire insurance | Mandatory (BSE) | Mandatory | Mandatory | Mandatory | Mandatory | Mandatory |
| Life insurance | Mandatory | Mandatory | Mandatory | Mandatory | Mandatory | Mandatory |
| Regulatory control fee (BCU) | Yes | 0.1% annual on balance | Yes | Yes | Yes | 0.345% annual on balance |
Watch out for HSBC: the supplementary service rate of 0.345% per year on the outstanding balance is significantly higher than the rest. Added to the TEA of 4.75%, the total effective cost approaches 5.1%, making it the most expensive UI option on the market.
Early repayment: what the law says
Law 18.574 regulates early repayment of residential mortgage loans in Uruguay. Key points:
- You can repay in full or in part at any time, paying the accrued interest up to that day.
- If fewer than 5 years have passed since the loan was granted, the bank may charge administrative costs (maximum 1% of the outstanding balance) and financial reinvestment costs.
- After 5 years, early repayment costs are significantly reduced.
- Financial costs are calculated according to average rates published by the BCU for the corresponding period.
In practice, most banks charge between 1% and 2% of the outstanding balance as a penalty during the first years. HSBC, for example, charges 1% of the principal balance or USD 500 (whichever is greater), with a minimum of 24 payments made.
Detailed analysis bank by bank
BHU — Banco Hipotecario del Uruguay
The BHU is the dominant player and the first option most Uruguayans evaluate. Its great advantage is the combination of low rates + high financing percentage. With the Préstamo Soñado, if you have a prior savings account Yo Ahorro with enough points, you can access financing of up to 100% of the property value, including the cost of life insurance.
Advantages:
- Rates from 3.75% TEA in UI — the lowest in the market.
- Financing up to 90% (or 100% with Préstamo Soñado and prior savings).
- Loans up to 2,800,000 UI (approximately USD 400,000 at the current exchange rate).
- Term up to 25 years.
- Yo Ahorro program: preferential rate and additional financing for savers.
- Compatible with FGCH (financing up to 90-95%).
Disadvantages:
- Slower process than private banks (can take 60-90 days).
- Heavier bureaucracy: more documentation, more steps.
- The 25% payment/income ratio is more restrictive than the 30% at private banks.
- Does not offer terms longer than 25 years.
Santander
Santander has positioned itself as the main private competitor to the BHU. In March 2026 it updated its rate sheet with very aggressive conditions: 3.90% TEA for up to 15 years for clients with direct deposit, placing it just above the BHU. And with a maximum term of 30 years for preferential profiles, it is the only bank that surpasses the BHU in loan length.
Advantages:
- Rate from 3.90% TEA in UI — competitive with the BHU for short terms.
- Term up to 30 years (Payroll, Select, University Professionals, Public Employees).
- Financing up to 85% for preferential profiles.
- Parent + Child option: allows combining income from parents and children to qualify.
- Sustainable Mortgage Loan with benefits for energy-efficient homes.
- Free appraisal.
- Faster process than the BHU (30-45 days).
Disadvantages:
- For the general public without direct deposit, the maximum term drops to 20 years and rates rise.
- The rate for 16-30 years rises to 4.50% — no longer as competitive.
- Maximum financing lower than the BHU (85% vs. 90-100%).
BBVA
BBVA bets heavily on the promotion for salary direct deposit, with preferential rates valid until June 30, 2026. Its strong point is the integration with the FGCH through a specific product that makes access easier for those with less prior savings.
Advantages:
- Rate from 4.00% TEA with salary direct deposit.
- Specific product with the Guarantee Fund (FGCH): financing up to 90%.
- For properties over USD 150,000 — up to 90% financing (1st home).
- Mortgage Loan for Energy-Efficient Housing with additional benefits.
- Free appraisal (capped at $10,000).
- Minimum employment tenure of only 12 months.
Disadvantages:
- Minimum income of $140,000 — one of the highest in the market.
- Without preferential conditions, rates rise to 5.50% at 25 years.
- Very restrictive payment/income ratio in dollars (15%).
- Age restrictions: maximum amount of USD 40,000 from age 65 onward.
Itaú
Itaú offers a solid product with competitive rates for its banking package clients. Its main limitation is the maximum term of 20 years, which may be insufficient for those who need lower monthly payments.
Advantages:
- Rate from 4.00% TEA for Personal Bank Package.
- Appraisal at no cost.
- Early repayment permitted.
- Administrative fees capped at USD 500.
Disadvantages:
- Maximum term of 20 years in UI — the shortest along with Scotiabank.
- Minimum employment tenure of 24 months — among the most demanding.
- Minimum income equivalent to USD 2,000 for the household.
- Maximum financing of 80% — you need more prior savings.
Scotiabank
Scotiabank has an interesting offer: no prior account required. They open the account when you apply for the loan. In addition, it offers financing of up to 90% for a first home, matching the BHU in that respect.
Advantages:
- Financing up to 90% of the property value (first home).
- No prior customer relationship required.
- Free appraisal.
- Accessible minimum income: $50,000 for UI loans.
Disadvantages:
- Rate from 4.15% TEA — not the lowest among private banks.
- Maximum term of 20 years in UI.
- Employment tenure of 24 months.
- Fewer branches in the interior of the country.
HSBC
HSBC caters to a higher-income client profile, particularly through its Premier segment. It has a specific offer for non-residents, making it attractive for foreign investors.
Advantages:
- Financing up to 90% (first home, resident clients).
- Specific product for non-residents (Premier Non-Resident): up to 60% financing.
- Term up to 25 years in UI.
- Relatively low minimum income: $60,000/month.
Disadvantages:
- TEA of 4.75% — the highest in the market in UI.
- Supplementary service rate of 0.345% per year — significantly increases cost.
- Appraisal at the client's expense.
- Early repayment penalty: 1% of balance or USD 500 (minimum 24 payments).
- Higher notary fees: 0.8% + VAT vs. 0.45% at the rest.
Dollar option: who it makes sense for
Dollar-denominated loans can seem attractive if you earn in that currency or if you are concerned about inflation. But the numbers speak clearly: rates range between 6% and 8.5% + VAT, maximum terms are shorter (10 to 20 years), and the permitted payment/income ratio is more restrictive (15-20% vs. 30% in UI).
| Bank | TEA in USD | Maximum term (USD) | Rate type | Note |
|---|---|---|---|---|
| Santander | 6.0% - 7.0% | 20 years | Variable (SOFR) | Rate reviewed every 6 months based on SOFR |
| BBVA | 6.5% - 7.5% | 18 years | Variable | Payment/income ratio: 15% |
| Itaú | Up to 8.5% | 15 years | Fixed (max.) | VAT applies on interest |
| Scotiabank | 6.5% - 7.5% | 15 years | Variable | VAT on interest |
| HSBC | 6.5% - 7.5% | 15 years | Variable | VAT on interest |
Our recommendation: unless you have stable dollar income and a short repayment horizon, the UI option is almost always better. The rate difference (3.75-4.50% vs. 6-8.5%) is too large, and exchange rate risk works against you if you earn in pesos.
Special programs: FGCH and Yo Ahorro
Mortgage Credit Guarantee Fund (FGCH)
The FGCH is a program administered by the National Housing Agency (ANV) that aims to facilitate access to mortgage credit for sectors with lower savings capacity. It is compatible with the BHU and several private banks (BBVA has a specific product).
Main conditions:
- Financing of up to 90% of the property value (95% under the "Entre Todos — Sueños en Obra" program).
- The household's net income cannot exceed 100 UR (approximately $180,000 as of April 2026).
- The monthly payment cannot exceed 35% of the household's income.
- Prior savings of 5% to 25% of the property value, depending on the program.
- Maximum term of 25 years.
- The property must be the primary and permanent residence.
If your income is below the ceiling and you have at least 10% in prior savings, the FGCH is probably your best path. Check the ANV website to see if you qualify.
Yo Ahorro Program (BHU)
If you are planning your home purchase in the medium term, the BHU's Yo Ahorro program is a powerful tool. It is a prior savings account in UI that, once certain requirements are met, gives you access to:
- Preferential rate (Saver TEA): a reduction on the BHU's standard rate.
- Additional financing: up to 10% more above your standard credit profile.
- Minimum initial deposit: 1,000 UI (approximately USD 145). Subsequent deposits: minimum 500 UI.
- You need to accumulate at least 2,000 points at the time of applying for the loan.
- Points are calculated based on the balance, frequency of deposits, and account age.
Key fact: deposits made less than 181 days ago cannot be withdrawn. And any withdrawal causes the mortgage benefit to be lost, unless you prove the funds were used for the property being purchased.
There is also Yo Ahorro Alquilando, a version for those currently renting who want to transition to home ownership, with a minimum initial deposit of 500 UI.
The appraisal process
The appraisal is a mandatory step in every mortgage loan. The bank sends an appraiser (expert) who evaluates the market value of the property. The financing percentage is calculated on that value —not on the purchase price.
Points to keep in mind:
- Most private banks offer free appraisal (Santander, BBVA with cap, Itaú, Scotiabank). HSBC charges it to the client.
- The BHU performs the appraisal internally through its own appraisers.
- If the appraisal comes in below the purchase price, you need to cover the difference with your own funds.
- The process takes between 5 and 15 business days depending on the bank and the location of the property.
- For properties under construction or land, the process is different and generally longer.
If you want a preliminary estimate of your property's value before starting the bank process, you can use our online appraisal tool, which gives you a reference value based on real data from the Uruguayan market.
Processing times
One of the factors that weighs most in the decision —and that few comparisons mention— is how long it takes each bank to approve and disburse the loan. These are the approximate times from start to finish:
| Bank | Pre-approval | Appraisal | Final approval | Signing and disbursement | Estimated total |
|---|---|---|---|---|---|
| BHU | 10-15 days | 10-15 days | 15-20 days | 15-20 days | 60-90 days |
| Santander | 3-5 days | 5-10 days | 10-15 days | 10-15 days | 30-45 days |
| BBVA | 3-5 days | 5-10 days | 10-15 days | 10-15 days | 30-45 days |
| Itaú | 3-5 days | 5-10 days | 10-15 days | 10-15 days | 30-45 days |
| Scotiabank | 3-5 days | 5-10 days | 10-15 days | 10-15 days | 30-45 days |
| HSBC | 5-7 days | 7-10 days | 10-15 days | 10-15 days | 35-50 days |
The BHU is notoriously slower. If you have a reservation contract with a tight deadline, a private bank may be the best option even if the rate is slightly higher.
Practical example: USD 150,000 property
Let's look at a concrete case. Suppose you want to buy an apartment for USD 150,000 in Montevideo, financing 80% (USD 120,000) over 25 years in UI. We convert to UI using an approximate value of 6.90 pesos per UI and an exchange rate of 42 pesos per dollar:
USD 120,000 × 42 = $5,040,000 ÷ 6.90 = ~730,000 UI
Using the fixed UI payment formula (French amortization system), these would be the estimated monthly payments:
| Bank | Applicable TEA | Monthly payment (UI) | Monthly payment ($ approx.) | Total paid over 25 years (UI) | Total interest (UI) |
|---|---|---|---|---|---|
| BHU | 4.50% | 4,050 | $27,945 | 1,215,000 | 485,000 |
| Santander | 4.50% | 4,050 | $27,945 | 1,215,000 | 485,000 |
| BBVA | 4.50% | 4,050 | $27,945 | 1,215,000 | 485,000 |
| Scotiabank | 4.50% | 4,050 | $27,945 | 1,215,000 | 485,000 |
| HSBC | 4.75% | 4,160 | $28,700 | 1,248,000 | 518,000 |
Note: peso values are reference figures based on the April 2026 UI value. Since the UI adjusts for inflation, the peso payment rises each month in proportion to the CPI. In real terms (purchasing power), the payment remains constant.
Impact of the rate: the long-term difference
To illustrate how much each percentage point matters, let's look at the same loan of 730,000 UI over 25 years at different TEAs:
| TEA | Monthly payment (UI) | Total paid (UI) | Total interest (UI) | Difference vs. 3.75% |
|---|---|---|---|---|
| 3.75% | 3,780 | 1,134,000 | 404,000 | — |
| 4.00% | 3,870 | 1,161,000 | 431,000 | +27,000 UI |
| 4.25% | 3,960 | 1,188,000 | 458,000 | +54,000 UI |
| 4.50% | 4,050 | 1,215,000 | 485,000 | +81,000 UI |
| 4.75% | 4,160 | 1,248,000 | 518,000 | +114,000 UI |
| 5.25% | 4,380 | 1,314,000 | 584,000 | +180,000 UI |
The difference between the lowest rate (BHU 3.75%) and the highest (HSBC 4.75%) is 114,000 UI in additional interest over the life of the loan. At the current UI value, that is equivalent to approximately USD 23,500. That is not a trivial amount.
How much do I need to earn?
With a monthly payment of 4,050 UI (~$27,945) and a payment/income ratio of 30%, you need a minimum net monthly income of at least $93,150 (approximately USD 2,220). If you go to the BHU with its 25% ceiling, the minimum income rises to $111,780 (approximately USD 2,660).
So, which one is best?
There is no single answer. It depends on your profile. Here is a quick guide:
Choose the BHU if:
- You need to finance more than 80% of the property value.
- You have (or can open) a Yo Ahorro account to access preferential rates.
- Time is not pressing — you can wait 60-90 days.
- You are looking for the lowest rate on the market and qualify for the saver benefit.
Choose Santander if:
- You need a long term (up to 30 years) to reduce the monthly payment.
- You already receive your salary at Santander or are willing to set up direct deposit.
- You want a faster process than the BHU.
- You are interested in the Parent + Child option.
Choose BBVA if:
- You qualify for the FGCH and want the direct integration.
- You have only 12 months of employment tenure (the lowest minimum among private banks).
- You receive your salary at BBVA and can take advantage of the promotion valid until June 2026.
Choose Itaú if:
- You are already a Personal Bank client and can access the 4.00% rate.
- You do not need more than 20 years in term.
- You value a fast process and a close relationship with your account manager.
Choose Scotiabank if:
- You are not a client of any bank and do not want to commit to direct deposit.
- You need high financing (up to 90%) at a private bank.
- Your income is modest (minimum $50,000 for UI).
Choose HSBC if:
- You are a Premier client or a non-resident looking to invest in Uruguay.
- You need a specific product for foreigners.
- For residents with other options available, HSBC is rarely the best choice in terms of cost.
Next steps
If you already have an idea of which bank fits your profile, here are the concrete steps:
- Estimate the value of the property you want to buy. Use our appraisal tool to get a reference figure.
- Calculate your borrowing capacity. Take your net income, multiply it by 0.30 (or 0.25 if going to the BHU), and that is the maximum payment you can afford.
- Request pre-approval at 2-3 banks. Do not commit to the first one. Pre-approval has no cost or commitment at most banks.
- Compare the total cost, not just the rate. Include administrative fees, notary fees, insurance, and the regulatory control fee.
- Negotiate. If you have a pre-approval from one bank, use it as a negotiating tool with another. Banks have room to improve conditions.
To go deeper into the complete process of obtaining a mortgage loan —from documentation to signing—, we recommend reading our complete guide to mortgage credit in Uruguay.
Last updated: April 2026. Rates, conditions, and requirements are for reference purposes and were gathered from the official rate sheets and tariffs of each bank. Always verify the current conditions directly with the financial institution before making a decision. INGAR is not a financial intermediary and does not offer credit advisory services.