Category: Financing and loans
Mortgage
A real guarantee right over a property that secures an obligation; lets the creditor foreclose if the debtor defaults.
Last updated:
Paraguayan mortgages are regulated by the Civil Code (articles 2356+). Most common security for housing loans: the property stays in the debtor's ownership and possession but is encumbered for the creditor (typically a bank). Created by public deed and registered with the Dirección General de los Registros Públicos. On default, the creditor can foreclose judicially. Standard bank mortgage rates in Paraguay (outside AFD's subsidized programs) run about 13% annual in PYG and 10.5% in USD, with terms up to 20 years and ~70% LTV.
Example
For a USD 100,000 apartment at 70% LTV, the bank lends USD 70,000 over 20 years at 10.5% annual in dollars: payment ≈ USD 700/month. With a 35% debt-to-income limit, the buyer needs income of at least ≈ USD 2,000 a month, plus USD 30,000 saved for the down payment.
Related tools
Sources
Related terms
Anticresis
A contract whereby the debtor hands over an income-producing property to the creditor so the creditor collects the property's income against interest and/or principal of a debt.
Matrícula inmobiliaria (real-estate registry number)
A unique number assigned by the Dirección General de los Registros Públicos to each property, identifying the parcel and consolidating its legal history.
Public deed (escritura pública)
A formal document authorized by a notary public that records the sale, gift, or transfer of real estate and perfects the transmission of ownership.
Che Róga Porã
Paraguay state-subsidized housing loan program backed by AFD, with a fixed 6.5% annual rate and up to 30-year term, for primary residence.