real estate financing

The purchase of an apartment in from Blue World City Islamabad is the desire of most Brazilians, either to ensure more comfort and financial security, or to make an investment in the medium or long term with a greater guarantee of appreciation. The premise is the same for those who acquire the asset in cash or need to appeal to property financing.

In the latter case, which represents the majority of purchases, it is necessary to understand what is the best way to invest your money so that the installments fit within the budget and the realization of this dream does indeed offer the desired tranquility. Therefore, it is necessary to stipulate how much will be required to enter the financing and check the possibility of not compromising your income.

These are the points that we will show in the following content. Continue reading and schedule the mortgage to make the best choice.

What are the most common types of home financing?

First, it is essential to know the most common financing modalities in Brazil. The Minha Casa, Minha Vida program, for example, is offered by the government with different criteria compared to other financial institutions.

The other options are: the Mortgage Portfolio (less used by Brazilians) and the Housing Finance System (SFH) – for properties up to R $ 750 thousand. Whatever your choice, it will start from the principle of assessing family income, using documents such as the income tax return and the presentation of payslips, among others.

Is it mandatory to enter into real estate financing?

In general, real estate financing requires an entry fee that can vary between 10% and 30% of the total to be paid for the property. When negotiations are made through the Caixa Econômica Federal program, the minimum percentage required for used apartments is 10%.

For the new ones, who have never been inhabited and fall under the Minha Casa, Minha Vida Program, it is even possible to make the financing without entry. Everything will depend on the value of the property, the family income and the credit analysis made by the institution.

It is important to keep in mind that the higher the value of the mortgage, the lower the interest rates and the installments to be paid over the years. When going through the credit analysis, you will have an idea of ​​how much you can get for the purchase of the property and, consequently, of the amount that you will have to anticipate for the entry.

It is worth remembering that the installments cannot exceed 30% of the monthly family income. This is one of the factors that determine both the amounts of financing and down payment and the number of installments.

Possibility of payment in installments

There is still a chance that you will be able to buy a property even without having the money to pay the down payment. In the case of apartments on the floor plan, for example, construction companies offer the option of installment payment.

But it must be paid by the time the keys are delivered (which can reach 36 months, depending on the case), when the financing itself begins. You can also use the Severance Pay Fund (FGTS) to pay the entry fee, as we will see in the next topic.

How can FGTS help with this account?

The use of FGTS in real estate financing is permitted in used and new properties. But it is necessary to meet some criteria established by the Federal Government, the first of which has been working in the Guarantee Fund regime for at least three years. This period may or may not be consecutive, in different companies.

But you cannot have used the fund’s money for the same purpose during that period. In addition, it is not permitted to have active financing by SFH or to own a residential property in the municipality where you live or work.

How to prepare for the entrance payment?

As you have seen, the greater the entry into home financing, the lower the installments and interest rates charged by financial institutions. Therefore, it is best to prepare yourself to be able to  save this money before choosing your new home .

Consider using the FGTS balance and make financial reserves, planning the family budget to take this important step. Wipe the bills and gather the family so that they can cut the superfluous expenses during this period.

Make a good analysis of the property to be chosen and the amount you want to pay to start financing simulations and discover the options available. This will give you an idea of ​​how much time you will need to collect the entry fee. Also think about the possibility of investing your savings until you start financing.

Do not forget that, in addition to the entry fee, you must add money for the extra bills involved in the purchase of a property, such as documentation, Property Transfer Tax (ITBI), registration and insurance, among others.

How to choose the ideal property for financing?

With all the information you need about real estate financing in hand, it’s time to understand how to choose the best option for your family. Trisul is a construction and real estate company with over 30 years of experience in São Paulo. We have some of the most interesting options on the market, in different locations, to meet your needs.

Such a high and important investment must take into account, in addition to your financial planning, the constructive quality, security and comfort of acquiring the perfect property for what you want. Do not forget to also analyze factors such as: location, proximity to subway stations, work and places where there is complete infrastructure.

Understanding how property financing works and the amount disbursed as input is essential for organizing your budget. Evaluate all the options offered by the market and do simulations to find out how much you will pay. If you want to avoid future headaches, remember that the benefits must fit in your pocket.

Did you like this article and are interested in more information about buying or selling real estate? Sign up for our newsletter and receive the next content directly in your email box.