The Brazilian market has been offering different types of financing with different interest rates for many years. Financial institutions analyze credit according to the applicant’s profile and release the values for the acquisition of real estate according to the possibilities of consumers. But a more advantageous opportunity was recently launched.
Here, you will discover a new type of real estate financing presented in recent months and understand how it works. After completing this reading, you will understand what are the changes and all the news of this new option, as well as the benefits that can be obtained through it for the purchase of land, house or apartment.
Do you need more information about the new type of real estate financing? Proceed!
How does the new financing modality work?
Recently, a real estate credit line was launched, with a fixed rate and without monetary restatement. The interest of the new modality starts from 8% per year and can reach a maximum of up to 9.75%. These conditions apply to used or new residential properties whose share of financing reaches 80%. These rules were stipulated to give incentive to civil construction.
The rate may be more beneficial for consumers who already have a relationship with the banking institution, ranging from 8% to 9.50%. For those who are not close, the rate will be 9.75%. Customers choose the amortization system that can be based on the PRICE table in the case of financing with up to 20 years or SAC for contracts of up to 30 years.
In this way, financial institutions are offering customers 3 types of credit for the acquisition of properties, one of them without correction, the other backed by the Broad Consumer Price Index (IPCA) and the last with Reference Rate (TR) plus the fees. The new option does not use correction indicators and has fixed interest rates, different from the others.
What are the benefits of it?
The greatest benefit is the reduction in the interest rate, which, in addition to being lower, is fixed for financing granted by the Housing Finance System (SFH). When calculations of final values are made, it is perceived that customers will have a considerable advantage compared to other modalities available on the market. TR is zeroed out for those who want to invest in the real estate business.
It is worth noting that account holders who have a credit history and usually make their investments in the financial institution will be able to obtain lower rates. On the other hand, if the applicant offers an entry to buy the property, the financing will be lower and the interest even more attractive. Extended discharge terms require higher interest rates because of the risk involved in the operations.
Despite this, the new mortgage loan is more advantageous and offers lower rates for everyone. If rates are fluctuating and variable according to inflation, the amount closed on contracting may change over the years. For this reason, the new modality intends to adjust the customers’ budget to interest rate fluctuations.
There are possibilities to renegotiate the loans already made if the person has delayed the payment of the amounts by more than 1 year. Some institutions have launched programs to enable renegotiation due to the COVID-19 pandemic. With the new rules, debts can be paid in cash with the application of discounts of 40% to 90% depending on the conditions of the debtor.
What are the differentials of this modality?
The famous over-the-counter fees charged to people who finance with banks or finance companies have also been reduced. Even if the applicants are not customers of the bank, they will benefit, since before the interest was 11% instead of 9.75%. In this new mortgage loan option, buyers assume much smaller installments considering the current inflation in Brazil.
Last year, the correction line was launched by the IPCA. However, with the most current modality, interest is fixed and without a correction index. The post-fixed option is subject to correction by the TR, interest charged per year and payment term of up to 35 years, with the possibility of using the resources of the Guarantee Fund for Time of Service (FGTS) and savings.
What can it be used for?
The new type of financing can be used to buy land, houses or residential apartments, both new and used. No prerequisites are required for participation and nominations are made according to the objectives of your customers. Therefore, the other lines continue to exist and are valid for those who wish to choose them.
People with greater purchasing power will use it to purchase high-end properties. But programs for the acquisition of simpler houses or apartments will remain active and with their own rates unchanged. Consumers can use a simulator to find out if this new credit option is beneficial in view of their particular conditions.
Several banks do not allow their customers to switch their credit line if they have already opted for another in the past. It is not allowed to change the mode to take advantage of this alternative, which is very tempting. However, some institutions allow portability of financing. Before choosing, make an assessment of all factors to make the right decision.
Consider that this new real estate credit was made available for new contracts for the acquisition of an individual lot or for individual construction by individuals. This is a consequence of the social isolation measures, determined due to the COVID-19 pandemic. People started looking for houses close to nature, with space in the courtyard and yard.
For the purchase of urban plots it is possible to split between R $ 50 thousand and R $ 1.5 million with a financing quota of 70% of the land value. The debt can be repaid in 20 years. There is also the possibility to finance the acquisition of the land and the construction or just the construction on its own land. It is worth checking out all the opportunities.
This is the new type of real estate financing, its differentials and the benefits it provides to users! If you have not yet opted for a loan, do a market research to find out all the credit lines available after the crisis caused by the new Coronavirus.