Bank Comparison 2026: Rates and Conditions for Your Mortgage

INGAR · · Financing

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 official rate sheets and tariffs current as of March 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 HSBC (an entity that, per the BCU's bank registry, is in the process of changing its name to Banco BTG Pactual Uruguay S.A.; its terms must be reconfirmed with the new issuer). 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 HSBC (an entity that, per the BCU's bank registry, is in the process of changing its name to Banco BTG Pactual Uruguay S.A.; its terms must be reconfirmed with the new issuer)— 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% 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, April 2026)

The market floor in UI is 3.75% TEA, shared by the BHU, Santander (primary residence), BBVA (loans above USD 100,000) and Itaú (with a Personal Bank or Full package).

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% ("Podés Comprar" and construction) From 3.75% From 3.75% From 3.75%; the 4.50% is the floor of the "Préstamo Soñado" — Saver TEA (Yo Ahorro account with 2,000+ points)
Santander 3.75% 3.75% 3.75% 3.75% 3.75% Primary residence, rate sheet 06/02/2026; Payroll, Select, University Graduate, Public Employees for the 30-year term
BBVA 3.75% (loans > USD 100,000) / 4.00% 4.00% 4.10% 4.50% — Receive salary/pension at BBVA (promo until 09/30/2026)
Itaú 3.75% 3.75% 4.00% — — 3.75% with a Personal Bank or Full package; 4.00% general
Scotiabank 3.80% 3.80% 3.80% 3.80% — Préstamo Hogar UI, first home; no prior account required
HSBC 4.75% 4.75% 4.75% 4.75% — Premier clients

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. 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.

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 HSBC/BTG 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 HSBC/BTG) to 30 years (Itaú in general, and Santander only for preferential profiles — Payroll, Select, University Professionals or Public Employees).

Feature BHU Santander BBVA Itaú Scotiabank HSBC
Maximum term (UI) 25 years 30 years* 25 years 30 years 25 years 25 years
Maximum term (USD) — 20 years 25 years 10 years 15 years BTG Pactual (ex-HSBC) — to be reconfirmed
Max. financing 1st home Up to 80% (90% with savings, 95% with FGCH, 100% Soñado) Up to 95% (specific groups); 85% Payroll/Select; 80% general public Up to 80% Up to 80% Up to 90% Up to 90%
Max. financing 2nd home — Up to 60% 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) Up to 35% depending on profile 35% 30% 35% Not published 35% (March 2026 rate sheet; 30% for other purposes)
Payment/income ratio (USD) — 20% 15% 20% Not published 20% (March 2026 rate sheet)
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.

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

Private banks require between 12 and 24 months of employment tenure and that the payment not exceed 30% to 35% of net income; the BHU allows up to 35% depending on the applicant's profile — the same ceiling as Santander, Itaú and HSBC/BTG — while BBVA is the most restrictive at 30%. All of them allow adding a spouse's income to qualify.

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 2 years (employees); 3 years (self-employed) 12 months 24 months 24 months 24 months in labor market + 12 months same employer
Age 1st borrower's age + term ≤ 70 years (2nd borrower ≤ 80) 20 to 69 when applying; max. 75 at the last payment Up to 77 at start; 84 at end (loan cap: USD 40,000 from age 65, USD 20,000 from age 71) 18 to 75 years 18 to 71 years (at end of loan) BTG Pactual (ex-HSBC) — to be reconfirmed
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 3 years of activity Yes, with 12 months Yes, with 24 months Yes, case-by-case evaluation Yes, with documentation

Key point: the BHU goes up to 35% depending on the applicant's profile — the same maximum ceiling as Santander, Itaú and HSBC/BTG — but it calculates it on disposable income (after fixed expenses, loans, withholdings and rent) rather than on net income, which can reduce the approvable amount even though the headline percentage is the same. BBVA is the most restrictive in the market, at 30% in UI and 15% in dollars.

What costs does a mortgage have beyond the rate?

Add roughly 1% of the amount in administrative fees, around 0.45% + VAT in notary fees (0.8% at HSBC), 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:

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 Waived, cap $10,000 (charged only if the loan is not finalized) No cost No cost (refunded if the loan is granted) BTG Pactual (ex-HSBC) — to be reconfirmed
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 (0.1%; Itaú 0.095%) and supplementary service fee (0.345%), both annual on balance Yes 0.1% + 0.345% annual on balance 0.1% + 0.345% annual on balance 0.095% + 0.345% annual on balance 0.1% + 0.345% annual on balance BTG Pactual (ex-HSBC) — to be reconfirmed

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, HSBC/BTG 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; HSBC/BTG charged 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, but requires each prepayment to come after the first 12 payments, once a year and to be at least 20% of the outstanding principal.

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. In June 2026 it updated its rate sheet with very aggressive conditions: 3.75% TEA in UI for a primary residence (rate sheet of June 2, 2026), 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 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 specific groups (ages 25-45, university graduates, homes up to USD 200,000) and up to 85% for Payroll/Select profiles (80% for the general public).
  • 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.
  • There is no longer a rate jump after year 16: the current rate sheet applies 3.75% TEA in UI across the entire primary-residence term, including the 16-to-30-year bracket.
  • Maximum financing (up to 95% for specific groups) is no longer below the BHU's standard ceiling.

BBVA

BBVA bets heavily on the promotion for salary direct deposit, with preferential rates valid until September 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 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 (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 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 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 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.
  • Free appraisal.
  • Accessible minimum income: $50,000 for UI loans.

Disadvantages:

  • Rate from 3.80% TEA in UI for a first home.
  • 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: charged by all private banks, not exclusive to this one.
  • 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.

Is a dollar-denominated mortgage worth it in Uruguay?

Generally no: dollar rates run from 6% to 7.5% + VAT, versus 3.75%-4.50% 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% 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% in UI).

Bank TEA in USD Maximum term (USD) Rate type Note
Santander 6.75% 20 years Fixed (single published rate) Payment/income ratio 20%
BBVA 6.00%-7.00% 25 years Fixed Payment/income ratio 15%
Itaú 7.5% + VAT 10 years Fixed VAT applies on interest
Scotiabank 7.5% + VAT 15 years Fixed Finances up to 80%
BTG Pactual (ex-HSBC) — — — Terms to be reconfirmed with the new issuer

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. 6-7.5%) 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 cannot exceed 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 most banks the appraisal is free (Santander, BBVA with a $10,000 cap — charged only if the loan is not finalized —, Itaú, and Scotiabank — which refunds it if the loan is granted) and takes between 5 and 15 business days; BTG Pactual (ex-HSBC) — to be reconfirmed — 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:

  • Most private banks offer free appraisal (Santander, BBVA with a cap — charged only if the loan is not finalized —, Itaú, Scotiabank — which refunds it if the loan is granted). BTG Pactual (ex-HSBC): to be reconfirmed.
  • 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 HSBC); 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:

Bank Pre-approval Appraisal Final approval Signing and disbursement Estimated total
BHU 10-15 days 10-15 days 15-20 days 15-20 days 50-70 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.

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

Financing 80% (USD 120,000) over 25 years in UI at a TEA of 4.50%, the monthly payment is around 4,050 UI, roughly $27,945 at the April 2026 UI value. With HSBC's 4.75% TEA, the payment rises to 4,160 UI (about $28,700).

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), 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, which allows up to 35% of disposable income depending on the applicant's profile —the same ceiling as Santander, Itaú and HSBC/BTG—, the minimum income can drop to $79,843 (approximately USD 1,980).

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 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:

  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 if going to the BHU, Santander, Itaú or HSBC/BTG; 0.30 at BBVA), 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: 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.

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