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See all the information on how to pause your Caixa housing loan!
The pandemic caused by the coronavirus has caused a series of losses, leading many people to lose their jobs and several companies to close their doors due to lack of resources.
Given this situation, the Caixa Housing Financing Program is allowing pause the value of the installments for up to 3 months.
However, to have access to this benefit it is necessary to meet certain requirements.
The first of these is the need to be up to date with payments. In other words, if you have several outstanding installments, this process will become more difficult.
The second criterion is that you cannot use your FGTS as part of the debt payment. Therefore, if you chose to use your balance as part of the payment, you will also not have access to the benefit.
Why was the Caixa Housing Financing Pause created?
In order to support citizens during this pandemic, the CMN (National Monetary Council) developed the option to pause the financing of your own home.
This also extends to other lines of credit, such as payroll loan and personal loan, for example.
The need for social isolation has created challenges for many workers and companies. Some of the population has managed to reinvent themselves and work from home.
However, not everyone was able to readapt their economic activities, triggering serious economic losses and a high unemployment rate.
And today the market is faced with many people looking for financial solutions to continue supporting themselves during this period.
So, in order to avoid and reduce the number of defaults in banks, financial institutions are using this system to freeze to the installments.
This way, customers have a better chance of balancing their financial lives during the pandemic. The result is relief and the possibility of getting back on their feet and getting their bills up to date.
Freezing the installments of financing housing, you do not pay the next installments at that exact moment, as they are transferred to the end of the financing, a period in which they must be paid off.
However, during the housing finance pause, the customer's contract is not exempt from charging interest, insurance or fees.
Therefore, the amounts due for the suspended charges are added to the outstanding balance of the contract and spread over the remaining term. The interest rate and the term contracted at the beginning do not change.
This is an excellent advantage and an alternative for those who are in a tight spot and need to pay off numerous debts.
General rules for pausing financing
In order to acquire this benefit, you must be aware of some general rules of the system.
Pausing financing is an excellent option, but not all users can take advantage of this opportunity. Furthermore, the rules may vary from one institution to another.
As in this case the focus is on Box Economic Federal, we will explain the general rules of the institution and which are also adopted by other banks:
The break is granted to individuals and legal entities
The first rule concerns the granting of the request, which can be granted to both individuals and legal entities. That is, if you have a property financed under the company's CNPJ, you can also join this system.
Customers must be up to date with their payments
Another important piece of information is regarding default, as you must be up to date with your payments.
However, in the case of Box, in some cases, applicants with up to two installments in arrears can request a pause in the financing of the property.
Customers who have requested a loan as collateral for a property can also make the request
The third rule refers to the group of consumers who made the loan secured by property. These people can also request a break. However, they must have paid at least 11 installments.
How do I request a pause in Caixa financing?
In advance, the forms of requests were adapted to avoid crowds at the bank and ensure that the customer can do everything without leaving home.
Therefore, the Box and other institutions, such as Itau and Santander granted access to the order through remote service.
In other words, you can request a pause in your property financing via Internet Banking, a mobile app or through the Bank's Call Center.
In other words, to request this service it is not necessary to go to a physical agency. Everything can be done using digital means or telephone.
See the step-by-step guide on how to pause your Caixa housing finance!
As mentioned at the beginning of this reading, you can pause your home loan for up to 3 months.
THE The order, in fact, can be made directly through the Caixa app or by phone.
For customers who have outstanding debts and do not meet the rules, it is necessary, first of all, to renegotiate the amount over the phone using the number 0880 726 8068, option 8.
Customers who are up to date with their payments and meet the requirements of the general rules can carry out the procedure by following the step-by-step instructions below.
1 – First, download the Housing Caixa application. The version is available for iOS, in the Apple Store, and Android, in the Play Store.
2 – The second step is to log in and select the option “Request Emergency Pause”, the last option on the application.
3 – Enter your CPF number and enter your password. Then, read the instructions and tap the “Next” button.
4 – In the “request payment pause” option, enter your cell phone number and click on “I authorize Caixa to send SMS to the number provided above” and then on “Request pause”.
Finally, Caixa carries out an analysis and sends an SMS informing you whether your request was accepted by the institution or not.
After the 3 months of “installment freezing”, payments will be debited from your account as normal again.
How does the Housing Financing pause work for legal entities?
It is important to note that legal entities also have access to this right. However, the process for requesting it is different from the step-by-step process for individuals.
If you have a property financing in your company name, in which case you need to contact your account manager to get more details about freezing installments.
Additionally, the response time may take up to 48 hours. However, Box considers the retroactive date of the request.
I.e, If you made your request on the 1st and received the response on the 4th, the benefit date will count from the 1st.
See also: Caixa's main financial products!
Caixa Extended Pause, a possibility to pause financing for up to 12 months
Another option that can help in times of crisis is the Extended Pause. In this way, the Customers can have their installments frozen for up to 12 months.
In short, This system aims to pause 6 to 12 payments on your housing finance. However, not all customers are entitled to this benefit. Therefore, it is necessary to follow the following rules:
Contract in good standing
Firstly, your financing contract must be up to date. In other words, there cannot be any late payments.
Have at least 24 installments paid
The second requirement is in relation to installments, as the customer must have paid at least 24 installments.
The debt balance cannot exceed 80% of the property value
Another requirement to be met is the debt balance, which cannot be greater than 80% of the property.
In other words, the sum of the frozen installments cannot be greater than 80% of the value of the housing finance.
FGTS
As with the 3-month break, in this case the FGTS cannot have been used as part of the payment of the installments.
How to apply?
The procedure for requesting an extended break is very simple and can be done over the phone or at a branch. The number is 0800 104 0104 for customers living outside the capital.
Regions that are part of the state capital should call the number 4004-0104. In both numbers, the option to choose is 7. Service hours are Monday to Friday from 8am to 8pm.
What precautions should I take when pausing my Caixa housing loan?
First of all, before making your request, you need to be aware of some precautions. Analyze your current financial situation carefully and only then make the most favorable decision.
The pause in the installments is, in fact, an extension of the debt and, from the chosen deadline, the value is recalculated.
Therefore, check in the contract whether the defined interest rates are advantageous. In other words, be careful and check whether freezing the installments will actually cause future damage.
In addition to the discount and pause on property financing, another financial solution is the refinancing of the debt. That is, the grouping of contracts into a new credit operation.
In both cases, always use the original contract as a basis for analysis. Above all, check the term, grace period, number of installments and the interest rate charged.
Pause of Caixa Housing Financing vs Refinancing
As we have seen, the financing pause is a solution used by large banking institutions to reduce the number of defaults caused by adverse situations, such as the coronavirus pandemic.
As well as freezing installments, there are other options, such as discounts and the possibility of refinance the debt.
Given these hypotheses, it is common to be undecided between the Caixa Housing Financing Pause vs Refinancing.
Refinancing is also a great alternative at the moment to control your financial life, so that you don't lose your hard-earned asset.
In short, refinancing is exchanging an old loan agreement for a new one at the same financial institution.
So, if you financed your property with Caixa and after a few years there was a financial imbalance, you can look for this proposal at the bank.
This way, you can make changes to the term and amounts contracted. However, this solution to end debt is only worthwhile if the interest rates are lower and the installments are smaller.
Other financial solutions
In addition to the break, the customer also has other alternatives, such as a discount of up to 50% on the installments of the financing of their property, check it out:
Discount of up to 50% on Caixa property financing installments
Another solution that Caixa proposed to reduce the default rate is to partially resume the installments. Thus, the housing finance discount can reach up to 50%.
Currently, there are two lines of credit that are available to consumers. In the first, the customer has the discount of 25% on installments for 6 months.
In the second option, a 50% discount for up to 3 months. However, in these two options, the case and needs of each client must be analyzed separately.
Another important piece of information is that since October 2020, Caixa has reduced the interest rates on financing from the Brazilian Savings and Loan System to 5%.
The financial institution has even confirmed that it will extend the grace period for purchases of new properties for up to 6 months.
Read more: Car Financing: How Does It Work And What Are The Rules?
Finishing the subject….
Concluding our topic on “How to pause Caixa housing financing”, this information presented is the most important to help you during this crisis.
But before signing up, analyze your financial situation, check the original contract and choose the most advantageous option. Compare the options and see which one best suits your situation and budget.
If you are looking for financial resources and need money, Caixa offers several financial products, such as loan, thirteenth month advance, between others.
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