How is a Colombian mortgage payment calculated?

Colombian banks quote the rate as a tasa efectiva anual (EA). The tool converts it to a true monthly rate using (1+EA)^(1/12)−1, then applies the standard annuity formula M = P·r / (1−(1+r)^−n) to find the fixed monthly cuota.

What is the maximum LTV in Colombia?

Regulation generally caps housing loans at 70% of the property value for standard homes and up to 80% for social-interest housing (VIS). That means a deposit of at least 30% (or 20% for VIS) is normally required.

What is the difference between EA and monthly rate?

EA (efectiva anual) is the rate compounded over a full year, which is how Colombian lenders advertise. The equivalent monthly rate is lower because it compounds twelve times. Using the EA directly as a monthly figure would massively overstate the payment, so the tool converts it correctly.

What about UVR-indexed loans?

Some Colombian mortgages are denominated in UVR (a unit that tracks inflation) plus a margin, so the peso cuota rises with inflation. This tool models a fixed-peso EA rate; for a UVR loan, enter your effective peso rate estimate, but be aware payments can change.

Does this calculator store my data?

No. All figures are computed locally in your browser and nothing is uploaded, so your details stay private.

Colombia Mortgage Calculator

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This Colombia mortgage calculator models a crédito hipotecario using local conventions. Colombian banks quote the rate as a tasa efectiva anual (EA), so the tool converts that to a true monthly rate before computing your monthly cuota. It also flags whether your loan-to-value ratio breaks the usual 70% (or 80% for VIS) cap.

How it works

Two steps. First, convert the advertised EA rate to a monthly rate:

monthly rate = (1 + EA)^(1/12) − 1

Then apply the standard amortising annuity formula to the loan amount (price − deposit):

cuota = P · r / (1 − (1 + r)^−n)

where P is the loan, r is the monthly rate, and n is the number of months. The LTV is the loan divided by the price; above 70% (80% for social-interest housing) the tool warns you that a bigger deposit is normally required.

Example

A COP 300,000,000 home with a COP 90,000,000 deposit means a COP 210,000,000 loan and a 70% LTV — right at the limit. At a 14% EA rate over 15 years, the EA converts to about 1.1% per month, giving a monthly cuota in the low single-digit millions of pesos.

Notes

This is an estimate. UVR-indexed loans move with inflation, so their peso cuota changes over time. Banks also add life and fire insurance (seguros) and the 4×1000 financial transaction tax that this tool does not include. Confirm the full cost with your lender.