Mortgage calculator for Colombia

Banks quote an effective annual rate (E.A.). It is converted to a monthly rate with (1 + E.A.)^(1/12) − 1, and a fixed payment in pesos follows from the loan amount, that monthly rate and the number of months. The first payments are mostly interest and the last ones mostly principal. Insurance is charged on top.

As an example, with 30% down (COP 90,000,000), a COP 210,000,000 loan over 20 years at 12% E.A. has a payment of about COP 2,223,109 a month before insurance, and about COP 323,546,169 of interest over the loan. The rate is an example: change it for the one in your quote.

Lenders usually expect the first payment to be no more than about 30% of household income. For the example above that means around COP 7,410,363 a month. The simulator shows this figure for your loan. Your credit history, your other debts and job stability also count, and each lender applies its own policy.

It depends on the product and the lender. As a general guide, lenders usually finance up to 70% of the value for non-VIS homes and up to 80% for VIS (social interest housing), and a housing lease (leasing habitacional) often covers between 80% and 90%. You pay the rest as the down payment. The simulator warns you when your down payment is below that guide.

Lenders usually require life insurance for the borrower, charged on the outstanding balance, and fire and earthquake insurance, charged on the value of the property. Both are added to the monthly payment. The simulator shows them separately as an estimate with editable values, because each bank and insurer sets its own rates.

Extra payments lower the balance that earns interest. In the example above, paying COP 300,000 extra every month would save about COP 116,903,635 of interest and finish the loan about 6 years sooner. Ask your bank how it applies extra payments (to shorten the term or to lower the payment) before you start.

No. A fixed-rate loan in pesos has the same payment every month. A UVR loan moves with the indexed unit, so the payment in pesos changes over time. This simulator only covers fixed payments in pesos and does not replace a bank quote.

Set aside roughly 1.5% to 3% of the property value for notary, registry, certificates, title checks and other closing costs. Colombia Move has a notary and registry cost calculator and a housing budget calculator to plan the cash you need.