In Colombia, the bank portfolio is divided into four categories, one of them being the housing portfolio. A large number of people have the financial objective of acquiring a home, which is achieved, in the vast majority of cases, through credit.
People who obtain their first home purchase credit not only achieve greater personal and family well-being but also develop positive financial behaviors that allow them to further improve their quality of life in the long term.
Behaviors from a financial perspective
Are the fact that the beneficiaries of the first home loan substantially improve their credit profile, their levels of financial deepening and their capacity for indebtedness by increasing their estimated income.
Next, we present the study we carried out in two blocks, the first corresponds to the total number of housing loans granted in a quarter of 2017 and to whom they are directed, and the second corresponds to the analysis of the benefits of obtaining the first housing loan.
The total of home loans that were disbursed in the quarter between May and July 2017 are taken. In that period of time, 38,151 home loans were delivered.
Reviewing the composition of loans by stratum, strong participation of stratum 3 can be seen with 36.5% of loans, followed by stratum 2 with 21.4%. Grouping the first three strata, it is concluded that 6 out of 10 loans granted for housing went to strata 1, 2 and 3.
The objective is to evaluate the benefits of the first home loan, such as a better credit profile, higher levels of financial deepening and greater ability to pay by increasing the debtor’s estimated income.
For the second part of this installment, people who obtained their first home loan between June 2014 and June 2015 (date 1) are taken and their situation in August 2017 (date 2) is evaluated. Additionally, they do not exceed 90 days past due to maintaining a homogeneous group of clients. For this group, four variables are analyzed that allow evaluating the benefits over time (between date 1 and date 2) of obtaining a home loan.
First, the benefits obtained by the debtors are reviewed globally through three variables: Good Credit Score estimated income and number of products. Second, these detailed operations are shown by the region where it was granted.
The home loan improves the credit profile of Colombians
The home loan radically improves the risk profile of people without previous credit experience (Type 5), analyzing the average value of the Good Credit Score in the two periods for this type of client, a very significant increase is evident. In the period of time between date 1 (June 2014 – June 2015) and date 2 (August 2017), the Good Credit Score went from 570.5 to 785.7 with an increase of 215.2 points.
Likewise, when the home loan is not the first bank loan, there is an improvement in the value of the Good Credit Score of 20 points in the period of time between the person’s first home loan on date 1 and date 2 (August 2017). This means that the person’s profile improves leading to lower risk, giving him the possibility of new credits with eventual better conditions, for example, lower interest rates.
The home improves the debtors’ ability to pay by increasing the estimated income.
The home loan increases the well-being of the person and his family, improving living conditions. This improvement in your situation can be measured through estimated income. People who acquired their first home loan increased their estimated salary by an average of 3.5 to 5.0 SMMLV. This increase of 1.5 SMMLV is equivalent to 43% on average, which, for the period of time analyzed, between 2 and 3 years means a growth higher than inflation.
Comparing the evolution of the average income for clients without previous credit experience (Type 5) between the two dates, a growth of 57% can be seen, going from 1.8 to 2.9. The first home loan improves the economic conditions of clients without previous credit experience (Type 5).
The first housing loan guarantees financial deepening
Another benefit of acquiring the first home loan is the improvement of access and use of credit products. The increase goes from 3.9 to 6.0 on average. This means a little more than two new products, which, discounting housing credit, allows more than one new credit product to grow.
The increase in the average number of loans for clients without credit experience (Type 5) is found in two products. It is good to remember that the increase includes the first home loan, which implies that this group of clients improves access and use of new credit products.