Those who do not have the full amount to buy a property, but feel that it is time to bet on this move to a safer life, can resort to real estate financing.
Increasingly, this has been the option of Brazilians in search of the acquisition of their first property and there are a number of possibilities to obtain credit to carry out their purchase.
Do you want to know about the process and what are the main lines of financing offered in Brazil? Continue reading!
What is real estate financing?
Real estate financing can be used to purchase new or used properties, as long as you are over 18 and have no credit restrictions. Proof of income is also required to confirm your ability to pay off the debt.
The credit line can be obtained with the help of financial institutions, such as public and private banks, as well as housing cooperatives.
The construction companies also usually finance their projects, usually in the case of real estate in the plant, which can be quite advantageous because they are valued until they are delivered to the owner.
What are the main financing options?
Get to know, now, some real estate financing options offered in Brazil. Come on!
My home, my life
After almost ten years of its creation, we can say that the Federal Government’s Minha Casa, Minha Vida Program (through Caixa Econômica Federal) is the best known in Brazil. This real estate financing offers the lowest interest rates on the market for the purchase of real estate.
But you need to be aware of who can benefit from the program. The rules were updated and the limit value (which was R $ 6,500 per month) was now R $ 9,000.
Below, see how the admitted family income ranges are divided:
- range 1: income of up to R $ 1.8 thousand;
- range 1.5: income of up to R $ 2.6 thousand, with interest of 5% per year;
- range 2: income of up to R $ 4 thousand, with interest between 5.5% and 7% per year;
- range 3: income of up to R $ 9 thousand, with variable interest – if the income is up to R $ 7 thousand, 8.16%; above that, 9.16% per year.
It is worth mentioning that the limits may vary according to each city.
Direct real estate financing with private banks
Although Caixa offers lower interest rates, other amounts embedded in its financing – such as the obligatory death or disability insurance of the borrower – may mean that this option is not always the most advantageous, depending on your income range.
Private banks have entered this competition, offering attractive conditions for account holders. Their contracts tend to be more flexible and there are more possibilities for negotiating the values, especially for those who want to purchase more expensive properties. Those who have been checking account holders for the longest time also tend to have more advantages.
Housing cooperatives bring together groups of people, basically, in three ways:
- construction professionals to build the property for themselves and other interested parties;
- joint efforts to build houses only for members; and
- people who finance the construction or purchase of a property among the members of the cooperative.
In these cases, it usually works as follows: you pay an initial amount for joining the cooperative and, subsequently, the monthly installments to keep the project going. It is worth mentioning that cooperatives must not be for profit.
Financing by the construction company
Those who prefer to buy the property in the plant – or in the process of construction – can opt for the financing offered by the construction companies.
They usually have attractive rates and the payment period for installments tends to be shorter. One of the advantages is that there is less bureaucracy to release this type of financing and negotiations are more flexible.
Before making your decision on which type of real estate financing you are going to choose, it is worthwhile to do a lot of research and do family financial planning.
Thus, you will have more security and tranquility in the acquisition of your property. Most institutions that offer credit have online financing simulators, such as Caixa Econômica Federal, Santander, Itaú and Banco do Brasil.
If you were interested in the subject, check out this other article on how to contain your debts during real estate financing!