To address the challenges faced by families in Buenos Aires struggling to afford their own homes, the city government has introduced a new subsidized mortgage loan through Banco Ciudad. This initiative is specifically targeted at middle-class families who currently allocate a significant portion of their income towards rent, making home ownership seem elusive. By offering a lower interest rate, the program aims to make the dream of owning a home more accessible for these families.

The new mortgage program stands out primarily due to its attractive interest rate structure. While the current market offers rates around 9.5%, the Buenos Aires government will subsidize the rate by two percentage points, allowing eligible borrowers to access loans at a reduced interest rate of 7.5% plus UVAs (a measure that adjusts for inflation). This financial incentive is expected to alleviate some of the burdens faced by families in the pursuit of homeownership and to stimulate the local property market.

Additional key aspects of this mortgage program include its exclusivity to first-time homebuyers, financing of up to 75% of the property's value, with a maximum limit of $100 million, and availability for properties up to 80 square meters that do not exceed $2,800 per square meter in market value. These measures are designed to support a segment of the population that has been increasingly squeezed by rising rental prices and stagnant wages, reflecting the government’s effort to create a more favorable housing landscape for the middle class in the city.