How much do you need to earn to buy a home in Colombia today?

2 min read

  • Housing
  • Mortgage
  • Mortgage rates
  • Housing

Rates dropped by almost half since 2023

Between 2022 and 2023, a non-VIS mortgage in Colombia cost between 17% and 20% EA at major banks. By March 2025, Bancolombia was offering a promotional rate of 9% EA, and the broader market settled at 10 to 12% EA. The difference is significant: at 16% EA, the monthly payment on a 105-million-peso loan over 20 years exceeds 1.5 million pesos. At 9% EA, that same payment drops below 950,000 pesos.

The 30% rule: how much of your income can go toward the payment

Colombian banks require that the monthly mortgage payment not exceed 30% of household income. Decree 583 of 2025 raised that cap to 40% for non-VIS housing. This means that if your monthly payment would be 950,000 pesos, the minimum required income under the new rule is 2.375 million. Under the old 30% rule it would have required over 3.1 million. The change brings homeownership within reach of a larger share of the population.

VIS, VIP, and the Generaci贸n FNA program

Social-interest housing (VIS) is capped at 150 SMLMV and priority-interest housing (VIP) at 90 SMLMV. For buyers between 18 and 28 years old, the Fondo Nacional del Ahorro has the Generaci贸n FNA program, which finances up to 90% of the property value. Note that the national Mi Casa Ya interest subsidy was suspended during 2025 and has no confirmed continuation in 2026, so it should not factor into your calculations.

The extra costs many buyers forget

The property price is not the only cost when buying. In Bogot谩 and Cundinamarca, notarization and registration run around 2 to 3% of the property value, covering registration tax, notarial fees, and ORIP charges. On a 200-million-peso apartment, that adds up to 4 to 6 million pesos that you need to have available at closing. The bank finances the property, not the closing costs.

Calculate your mortgage capacity

The home affordability calculator lets you enter your gross monthly income, the payment-to-income ratio you can commit to, the current bank rate, and the loan term, and instantly shows how much credit you qualify for and what property price you can reach. You can also work in reverse: enter the property price you want and see what income you would need to qualify for the loan today.

Calculate my home affordability

References

This note is not financial advice.

How much do you need to earn to buy a home in Colombia today? 路 Quantio