Mortgage interest rates in Peru are continuing a downward trend, averaging 7.84% annually as of February 16, 2026, according to financial analysts. This represents a decrease from 7.88% at the end of January, 7.89% at the end of December and 7.90% at the end of November.
Julio Cabrera, a finance professor at ISIL, attributes the declining rates to increased competition among financial institutions. “There was almost 8% growth in mortgage lending in 2025 compared to 2024. This generates greater competition among financial entities, which puts downward pressure on rates,” Cabrera stated.
This competition extends to the purchase of mortgage debt from other banks, Cabrera added, with the aim of offering additional credit products to those customers in the future. The range of interest rates currently available varies significantly, from 7.31% to 16.52% depending on the bank.
Humberto Marín, commercial director of the real estate group Conforta, highlighted that the falling rates are improving access to homeownership. “In 2023, rates were averaging 10%, in 2024 they were at 9%, and 2025 closed below 8%. Here’s an opportunity that benefits citizens to buy a home, as it lowers the monthly payment,” Marín explained.
A one percentage point decrease in mortgage interest rates translates to a reduction of between S/ 700 and S/ 800 in the monthly payment, according to Marín. “This is a substantial amount when considering a property valued between S/ 500,000 and S/ 600,000,” he said.
Looking ahead, Cabrera anticipates that the upcoming electoral cycle in Peru will have only a temporary effect on mortgage demand, as no current candidate poses a threat to market stability. He predicts that interest rates will continue to decline slightly this year, potentially reaching a floor between 7.70% and 7.80% annually.
In a separate incident, Julio Orozco Cabrera, 25, was fatally shot in Lemon Grove, California, on April 18, 2025. Marvin Lester Sears, 59, was arrested at the scene and investigators reported a prior relationship between the suspect and the victim. The motive remains under investigation, according to the San Diego County Sheriff’s Office.