Colombian Fintech Launches First Crypto Mortgage
2022.07.28 18:42
Colombian Fintech Launches First Crypto Mortgage
- Milo Credit expects to make the first 100 million dollar mortgage loans available to Colombians for home purchased in the U.S. and other countries.
- Since the triumph of President-elect Gustavo Petro, the purchase of real estate abroad by Colombians has increased.
Colombian fintech Milo Credit announced the launch of the first mortgage in cryptocurrencies for clients interested in acquiring properties in the United States. The company started the program at a limit of $10 million, but expects to raise the bar to a total of $100 million over the course of the year.
CEO and founder of Milo Credit Josip Rupena explained that they have observed a marked interest from colombians in real estate projects abroad, even despite global inflation and the record increase in interest rates that have served to make loans more expensive.
The company was founded with the intention of serving a broad market oriented around real estate investment. Rupena noted that, previously, “investors only had two options: cash payments and high-interest loans in their home country.”
The CEO went on to call such investment options “risky”, because they “take away the opportunity for other potential investors” to invest. “We offer mortgage loans at competitive rates, from 6%”, assured the executive.
“Demand Remains in Very Positive Territory”
Since its launch three years ago, Milo Credit has provided mortgage loans to the clients in more than 90 countries. “Each year we have doubled our operations. In the last 15 months, approximately, we have processed US$100 million in mortgages”.
Regarding cryptocurrency mortgage offerings, Rupena explained that Milo had already surpassed the first $10 million in loans. Mortgage loan placements are expected to increase to approximately $100 million as customers adjust to high interest rates and “demand remains in very positive territory.”
He specified that there is a strong interest among colombians in acquiring properties abroad. To the point that “Colombia is among the first five countries most interested in buying properties in the United States.”
This is especially true in cities like Miami, Orlando and Tampa. Although, lately, colombians have been showing particular interest in other states, such as the two Carolinas and Texas, which are home to large Latino populations.
Crypto Mortgage Options
“When the property markets abroad lower their rates, it is when we see more activity from international clients, because they believe they can get a better offer,” Rupena explained.
The loans that Milo grants in cryptos are made directly, eliminating the need for financial intermediaries. After a client pre-qualifies for a loan, a real estate agent shows them the property that they wishes to acquire.
Likewise, those who already own property with a signed purchase contract are also eligible to apply for a loan. Furthermore, the company ensures that sensitive data related to the client’s income or tax certifications in Colombia are not needed.
On the Flipside
- After the presidential victory of Gustavo Petro in the elections on June 17th, Colombian property purchases in the U.S. skyrocketed.
The Colombian Chamber of Construction (Camacol) projects that 256,000 new homes will be sold this year. Some 186,000 of these homes are of social interest, which represents a total annual market growth of 7%.
Why You Should Care
- The cryptocurrency market in Colombia is one of the most prosperous in the region, which could explain Milo Credit’s commitment to mortgage loans in crypto.
- Without neglecting reports from the South American country on the circulation of high volumes of dollars and digital currencies via drug trafficking.
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