Bank Comparison 2026: Rates and Conditions for Your Mortgage

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 each bank's official rate sheets and tariffs. Private-bank figures were updated on October 18, 2026; BHU figures come from earlier reviews, the latest in August 2026. Rates and conditions may change; always verify with the bank before making a decision.

---

Which banks offer mortgage credit in Uruguay?

In Uruguay, mortgage credit is offered by the Banco Hipotecario del Uruguay (BHU) —which holds approximately 70% of the country's loans— and five private banks: Santander, BBVA, Itaú, Scotiabank, and BTG Pactual (formerly HSBC). The BHU finances up to 80% of the property value with the lowest rates —90% with prior savings, 95% with the FGCH and 100% with the Préstamo Soñado—; private banks finance between 80% and 90% for a first home, with exceptions reaching 95%, but with faster processes.

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 80% of the property value, 90% with prior savings, 95% with the FGCH and 100% with the Préstamo Soñado, and it offers the lowest rates in the market.

Private banks —Santander, BBVA, Itaú, Scotiabank, and BTG Pactual (formerly HSBC)— have gained ground in recent years by betting on faster processes, less bureaucracy, and quicker approvals. They generally finance between 80% and 90% of the property value for a first home, with exceptions reaching 95% (the 70% figure belongs to their second-home lines), at rates comparable to the BHU's and with 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 6.75% and 7.5%), shorter terms (10 to 25 years depending on the bank), 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.

---

Which bank has the best mortgage rate in Uruguay? (TEA in UI, 2026)

The market floor in UI is 3.75% TEA, shared by the BHU, Santander (primary residence, loans from USD 100,000), BBVA (loans above USD 100,000, with salary paid into the bank), Itaú (with a Personal Bank or Full package) and BTG Pactual (loans from USD 99,999).

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:

Update (July 2026): BHU's standard product ("Podés Comprar") advertises rates from 3.75% TEA for home purchase as well; 4.50% applies to the longest terms and to the "Préstamo Soñado" (up to 100% financing with additional collateral). Santander now advertises financing of up to 95% of the purchase price. Verified at bhu.com.uy and santander.com.uy.

Note: BHU rates vary according to the percentage financed, the term, the applicant's income profile, and whether the saver benefit applies. For Itaú, BBVA and Scotiabank, the table shows the rate for clients with a package or whose salary is paid into the bank; Santander and BTG Pactual set the rate by loan amount.

Rates without preferential conditions

If your salary is not paid into the bank and you do not meet the preferential conditions, rates rise: Itaú goes from 3.75% to 4.00% and Scotiabank from 3.80-4.00% to 4.40-4.60%. BBVA does not publish its rate without the promotion. Santander, for its part, reserves the 30-year term for Payroll, Select, university professional or public employee clients; for the general public, the maximum term in UI is 20 years.

---

How much does each bank finance and over what term? General conditions

The BHU finances up to 80% of a first home —90% with prior savings and 95% with the FGCH— and 100% with the Préstamo Soñado; Santander reaches 95% for specific groups, Scotiabank and BTG Pactual 90%, and BBVA and Itaú 80% (BBVA 90% if the property is over USD 150,000). The maximum term in UI ranges from 25 years (BHU, BBVA, Scotiabank and BTG Pactual) to 30 years (Itaú in general, and Santander only for preferential profiles — Payroll, Select, University Professionals or Public Employees).

* Santander offers 30 years exclusively for Payroll, Select, University Professionals, or Public Employee clients. The general public can access up to 20 years.

---

What requirements do banks ask for to grant a mortgage in Uruguay?

Private banks require between 12 and 24 months of employment tenure. For UI loans, Santander, Itaú and BTG Pactual (formerly HSBC) publish a payment cap of 35% of income, and BBVA a cap of 30% of take-home pay; Scotiabank does not publish its ratio. The BHU works with disposable income, which also subtracts rent and other loan payments, and its percentage depends on the applicant's profile. All of them allow adding a spouse's income to qualify.

Key point: the BHU applies its percentage to disposable income (after fixed expenses, loans, withholdings and rent), which is lower than take-home pay, and that can reduce the approvable amount. Among the private banks that publish their cap, BBVA's is the lowest: 30% in UI and 15% in dollars.

---

What costs does a mortgage have beyond the rate?

Add the origination or administrative fee (1.5% at Santander, capped at USD 1,500; 1.5% + VAT at Itaú, capped at USD 500; 2% + VAT at Scotiabank), the notarial review of the mortgage (between 0.45% and 0.72% + VAT at the banks that publish it separately), and the mandatory fire and life insurance. On top of that comes the BCU's regulatory control fee on the outstanding balance.

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:

Note: the supplementary service rate of 0.345% per year on the outstanding balance is charged by all private banks (Santander and Itaú publish it at that same rate); together with the regulatory control fee it adds up to 0.445% a year. It is not a differential specific to any one bank.

---

Can you pay off a mortgage early in Uruguay?

Yes: Law 18.574 allows full or partial repayment at any time, and once at least 5 years have passed since the loan was granted, administrative costs are capped at 1% of the balance. Before 5 years, the bank's contractual penalties apply, and they vary: BBVA 2% of the balance, BTG Pactual 1% of the balance or USD 500, Itaú a contractually agreed cost and only from payment 37 onward, the BHU has it suspended and Santander publishes no fee.

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 at least 5 years have passed since the loan was granted, the law caps the cost: you pay the interest accrued up to that day, plus administrative costs (maximum 1% of the outstanding balance) and the lender's financial reinvestment loss costs.
• Before 5 years, the bank's contractual penalties apply (and they are usually more onerous).
• Financial costs are calculated according to average rates published by the BCU for the corresponding period.

In practice the policy varies by bank: BBVA charges 2% of the balance before 5 years and 1% after; BTG Pactual charges 1% of the principal balance or USD 500 (whichever is greater), with a minimum of 24 payments made; Itaú accepts partial or full repayments only from the 3rd year (payment 37) and with a prepayment cost set in the contract; the BHU has the fee suspended by a Board resolution; Santander publishes no fee and accepts principal prepayments of at least 20% of the outstanding balance, to lower either the payment or the term.

---

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 80% (90% with prior savings, 95% with the FGCH, 100% with the Préstamo Soñado).
• Loans of 100,000 to 2,800,000 UI (about USD 461,000 as of August 5, 2026: UI $6.6332 and BCU dollar rate $40.256).
• 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 50-70 days).
• Heavier bureaucracy: more documentation, more steps.
• Does not offer terms longer than 25 years.

Santander

Santander has positioned itself as the main private competitor to the BHU. Its rate sheet of September 18, 2026 publishes 3.75% TEA in UI for a primary residence on loans from USD 100,000 (4.75% below that), which puts it level with the BHU's floor rate. And with a maximum term of 30 years for preferential profiles, it matches Itaú (which also reaches 30 years, with no profile restriction) as one of the two private banks that most exceed the BHU in loan length.

Advantages:

• Rate of 3.75% TEA in UI for a primary residence on loans from USD 100,000, across every published term — level with the BHU's floor.
• Term up to 30 years (Payroll, Select, University Professionals, Public Employees).
• Financing up to 95% for a narrow profile (ages 25 to 45, university graduate and a home up to USD 200,000) and up to 85% of the purchase price in general (75% if the collateral is a pledge on the purchase promise).
• Parent + Child option: allows combining income from parents and children to qualify.
• The monthly payment includes the appraisal, origination costs and life and fire insurance.
• Faster process than the BHU (30-45 days).

Disadvantages:

• For the general public, the maximum term drops to 20 years.
• On loans under USD 100,000, the UI rate rises to 4.75%.
• Origination costs of 1.5% of principal (capped at USD 1,500), or 2.5% if the loan is under USD 30,000.

BBVA

BBVA bets heavily on its promotion for clients who receive their salary or pension at the bank, with preferential rates valid until December 31, 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 3.75% TEA with salary direct deposit for loans above USD 100,000; from 4.00% for smaller amounts.
• Specific product with the Guarantee Fund (FGCH) of the ANV: financing can reach up to 95% depending on the product and program.
• For properties over USD 150,000 — up to 90% financing (1st home).
• Mortgage Loan for Energy-Efficient Housing with additional benefits.
• Free appraisal with salary at BBVA (capped at $11,000).
• Minimum employment tenure of only 12 months.

Disadvantages:

• Minimum income of $140,000 — one of the highest in the market.
• The published rates are those of the salary promotion; without that condition, the bank does not publish its rate.
• 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 maximum term is now 30 years, in line with the other banks, so it is no longer a limitation versus the competition.

Advantages:

• Rate from 3.75% TEA for clients with a package (Personal Bank or Full); 4.00% TEA general.
• Appraisal at no cost.
• Early repayment permitted.
• Administrative fees capped at USD 500.

Disadvantages:

• No longer the shortest among private banks: its maximum term is now 30 years in UI (capped at 2,500,000 UI if the term exceeds 20 years).
• Minimum employment tenure of 24 months — among the most demanding.
• Minimum income equivalent to UI 10,000 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 with no prior savings required, a level the BHU only reaches with prior savings (its base is 80%).

Advantages:

• Financing up to 90% of the property value in UI (first home); 80% in dollars.
• No prior customer relationship required.
• Appraisal refunded if the loan is granted.
• Accessible minimum income: $50,000 for UI loans.

Disadvantages:

• The 3.80% TEA in UI applies to clients whose salary is paid into Scotiabank and terms of up to 10 years; at 25 years it is 4.00%, and without that benefit, from 4.40%.
• Maximum term of 20 years in UI.
• Employment tenure of 24 months.
• Fewer branches in the interior of the country.

BTG Pactual (formerly HSBC)

HSBC Uruguay is now Banco BTG Pactual Uruguay S.A. Besides its loan for residents, it has a specific line for non-residents aimed at clients in its Excellence segment, which makes it an option for foreign investors.

Advantages:

• 3.75% TEA in UI for loans of USD 99,999 to 500,000.
• Financing up to 90% in UI for a first home (80% for amounts over USD 150,000).
• Specific product for non-residents (Excellence Extranjero clients): up to 60% financing.
• Term up to 25 years in UI.
• Free reappraisal every two years.

Disadvantages:

• TEA of 4.75% in UI for loans under USD 99,999.
• Supplementary service rate of 0.345% per year: charged by all private banks, not exclusive to this one.
• Appraisal at the client's expense: USD 150 + VAT.
• Early repayment penalty: 1% of balance or USD 500 (minimum 24 payments).
• Higher notary fees: 0.72% + VAT vs. 0.45% to 0.5% at Itaú, BBVA and Scotiabank.
• The account the payment is debited from has a monthly fee, and the mortgaged property cannot be rented out, either at signing or while the loan is outstanding.

---

Is a dollar-denominated mortgage worth it in Uruguay?

Generally no: dollar rates run from 6.75% to 7.5% + VAT, versus 3.75%-4.75% in UI, with maximum terms of 10 to 25 years depending on the bank. It only makes sense if you have stable dollar income and a short repayment horizon.

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 6.75% and 7.5% + VAT, maximum terms run from 10 to 25 years depending on the bank, and the permitted payment/income ratio is more restrictive (15-20% vs. 30-35% in UI).

Our recommendation: unless you have stable dollar income and a short repayment horizon, the UI option is almost always better. The rate difference (3.75-4.75% vs. 6.75-7.5%) is too large, and exchange rate risk works against you if you earn in pesos.

---

How to get a mortgage with little savings? FGCH and Yo Ahorro

The ANV's FGCH allows financing of up to 95% of the property value, for both existing and newly built incentivized housing (Law 18.795, including the Entre Todos program), if the household's net income does not exceed 100 UR; the effective maximum is set by each participating bank. The BHU's Yo Ahorro program, in turn, gives a preferential rate and up to 10% more financing to those who save beforehand.

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 95% of the property value, for both existing and newly built incentivized housing (Law 18.795, including the Entre Todos program); the effective maximum is set by each participating bank.
• The household's net income cannot exceed 100 UR (approximately $192,000 as of August 2026).
• The monthly payment must be below 35% of the household's income.
• Minimum prior savings of 5% of the property value (up to 25% 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.

---

How much does a bank property appraisal cost and how long does it take?

At several banks the appraisal is not paid separately: Itaú does not charge for it, Santander includes it in the monthly payment, BBVA waives up to $11,000 for clients whose salary is paid there (charged if the loan is not finalized), and Scotiabank refunds it if the loan is granted. It takes between 5 and 15 business days. BTG Pactual charges for it (USD 150 + VAT), and the BHU performs it internally.

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:

• Several private banks do not charge for the appraisal separately: Itaú does not charge for it, Santander includes it in the payment, BBVA waives up to $11,000 for clients whose salary is paid there and Scotiabank refunds it if the loan is granted. BTG Pactual charges USD 150 + VAT, with a free reappraisal every two years.
• 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.

---

How long does mortgage approval take in Uruguay?

At private banks, between 30 and 45 days from start to finish (35-50 at BTG Pactual); at the BHU, between 50 and 70 days. Pre-approval at a private bank can be ready in 3 to 5 days. The BHU also publishes a service commitment: your loan within a maximum of 70 days, or it refunds the amount of your first instalment (ES.CRE.03, version 31, clause 2.1.3, accessed 5 Aug 2026); the document does not state which milestone starts the clock.

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:

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.

---

How much is the monthly payment on a USD 150,000 property? Practical example

Financing 80% (USD 120,000) over 25 years, the 4.50% TEA scenario gives a pure payment of 4,009.27 UI ($26,594.27 at the reference UI of August 5, 2026). At a 3.75% TEA, the rate Santander, BBVA (with salary paid there) and BTG Pactual publish for this amount, it comes to 3,717.98 UI ($24,662.09). These figures cover principal and interest only, without insurance or fees.

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 the INE's UI as of August 5, 2026 ($6.6332) and the BCU exchange rate as of August 4, 2026 ($40.256):

USD 120,000 × 40.256 = $4,830,720 ÷ 6.6332 = ~728,000 UI

Using the fixed UI payment formula (French amortization system), with an effective monthly rate r=(1+TEA)^(1/12)−1, these would be the estimated monthly payments:

Note: peso values are reference figures calculated with the UI of $6.6332 on August 5, 2026 and the exchange rate of $40.256 on August 4, 2026; they do not forecast future peso payments. 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:

In this separate scenario of 730,000 UI over 25 years, going from a 3.75% to a 4.75% TEA adds about 117,488.80 UI in interest, equivalent to USD 19,359.27 at a UI of 6.6332 and an exchange rate of 40.256. That is not a trivial amount.

How much do I need to earn?

With a pure payment of 4,009.27 UI, equivalent to $26,594.27 at the reference UI, and a 30% payment-to-income cap, the income in this scenario is about $88,647.57 (USD 2,202.10 at an exchange rate of 40.256). With a 35% cap, the result is $75,983.63 (USD 1,887.51). These are principal-and-interest figures before insurance and fees; the income base and approval depend on the bank and the applicant's profile.

---

Which bank is best for a mortgage in Uruguay?

There is no single winner: the BHU is best if you need to finance more than 80% of the value and can wait 50-70 days; Santander if you want the longest term (up to 30 years) and receive your salary there; Scotiabank if you are not a client of any bank and need high financing at a private bank.

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 50-70 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: the promotion, checked on October 18, 2026, runs until December 31, 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: Scotiabank does not require a prior account and opens one with the application (its lowest rate is for clients whose salary is paid there).
• You need high financing (up to 90%) at a private bank.
• Your income is modest (minimum $50,000 for UI).

Choose BTG Pactual if:

• You are a non-resident looking for a line designed for foreigners (Argentina and Brazil; other countries on request).
• Your UI loan is between USD 99,999 and 500,000: in that bracket it publishes a 3.75% TEA.
• Keep in mind that it charges for the appraisal (USD 150 + VAT) and that the account the payment is debited from has a monthly fee.

---

Next steps

If you already have an idea of which bank fits your profile, here are the concrete steps:

1. Estimate the value of the property you want to buy. Use our appraisal tool to get a reference figure.
2. Calculate your borrowing capacity. Take your net income, multiply it by 0.30 (or up to 0.35 at Santander, Itaú or BTG Pactual; 0.30 at BBVA; at the BHU the percentage depends on your profile and applies to disposable income), and that is the maximum payment you can afford.
3. Request pre-approval at 2-3 banks. Do not commit to the first one. Pre-approval has no cost or commitment at most banks.
4. Compare the total cost, not just the rate. Include administrative fees, notary fees, insurance, and the regulatory control fee.
5. 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: October 18, 2026 (private banks). 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.

Thinking about a mortgage? Browse the available properties or message us on WhatsApp and we’ll guide you.