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The idea of property financing comes down to a strategy in which a bank lends a certain amount so that the client can acquire their own home.
Immediately after obtaining the property, the client simply has to pay the monthly installments, including some interest.
Therefore, continue reading and understand more information about financing, main conditions and how to apply.
What is property financing?
First of all, understand that the client must offer a down payment for the property.
The down payment value varies depending on the agreement, but is generally 10% of the property value.
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Therefore, companies offer the possibility of simulating to understand more about the entry value and interest rates.
One tip at this point is to offer the highest down payment you can, so you can finance a smaller amount and enjoy better conditions.
Therefore, it is worth mentioning that Caixa Econômica, for example, finances only 70% of the value of your property.
Other institutions may even offer a value higher than 75%.
Immediately afterwards, the customer simply requests the remaining amount from a bank, which will be paid in installments plus interest.
The payment term varies depending on the company, but the maximum time would be 35 years.
Until the consumer completes payment of all installments, the property remains in their name, but no type of negotiation can be carried out.
In this sense, to finance a property, an additional fiduciary alienation agreement is entered into.
This means that the bank has full rights to the property until you pay off the debt.
It is important to note that you do not need to be a bank customer to apply for property financing.
Despite this, it is important that you sign a contract with a company that knows your data because it will then be able to offer better conditions.
A company that knows the customer also has a faster credit analysis.
Interest rates
Speaking about property financing rates, be aware that they can vary depending on the bank chosen.
According to the Central Bank website, regulated financing rates at Caixa Econômica would start at 0.75% am and 9.40% pa
The values at Banco Santander start at 0.96% per month and 12.16% per year.
The values above are just a few examples, proving that each company has its own rules and conditions.
That's why, visit the Central Bank website to compare and define a good institution.
How to finance a property
Property financing can be done online.
This way, you just need to choose the best bank for your case and visit the website to run the simulation.
Some of your data is requested and after simulating, all conditions are informed.
You can also count on chat support to clarify all your doubts.
Also find out what the best options are vehicle financing.
