Real estate financing interest: understand how they work.
Certainly, the market is in full recovery and the opportunities are great for both housing and investment. But conditions are attractive, but it is necessary to understand how real estate financing interest works to make a conscious planning. So, now see everything you need to know about the subject.
What are real estate financing interest
Long-term payment is the easiest way to buy a property, but you need to pay attention to mortgage interest . After all, they represent the true price of any loan.
Interest is the way found by financial institutions to profit from borrowed money. But if the customer paid only the amortization, the banks would suffer losses because of inflation.
There are 3 types of interest:
Nominal rate - It is fixed for one year and does not change. It is the interest rate itself and must be mentioned in all contracts, including bank applications.
Real rate - It is the nominal interest rate adjusted for inflation.
Effective rate - When there is capitalization, it is necessary to convert the nominal rate into an effective one. That is, when interest is incorporated into the initial capital, the amount receivable will be greater than that indicated by the nominal rate.
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Know the composition of interest
Basically, interest on real estate financing is made up of two factors. The first are costs involved in the operation, determined by the origin of the resources.
Those coming from the Service Guarantee Fund (FGTS) cost the bank 3% per year plus the fluctuation of the TR (Referential Rate). However, those coming from savings cost the TR an additional 6.17% per year. Therefore, these resources are not the only ones, but they have the cheapest rates.
The second factor is the spread - the difference between the interest paid to the creditor and that charged to borrowers. Basically, it exists to cover operating expenses, including losses due to defaulting customers.
Interest and Selic, is there a relationship?
The Selic, which is the basic interest rate for the financial market, indirectly influences real estate financing interest .
When the Selic increases, the government is increasing the remuneration paid to its creditors. This causes investors to migrate from savings to public securities.
As savings are the main resource of real estate credit, the consequence is that it becomes more expensive, since it is scarcer. However, when the Selic rate falls, as it is now, (6.5%), there is less willingness to lend to the government.
As a result, there are more resources available for lending, which influences the drop in real estate interest.
Financing time interferes with interest rate
The financing time also interferes with interest. For this reason, very long deadlines can put the consumer in an upside-down promotion. Extending the financing term can almost triple the debt, since it will spend more time paying interest.
The ideal is to do simulations and stay tuned. Thus, even if the value of the installment does not vary as much in terms of 20, 25 or 30 years, the final impact of the debt may exceed R $ 200 thousand.
It is possible to negotiate a lower interest rate
In fact, it is common to disagree with interest rates and negotiate a reduction. For this, however, it is essential to have bargaining power.
So, the main assets of the consumer are a good income that can be proven and a good payment history on time.
On the other hand, the client also gains good arguments by researching the best rates in the market among the competition.
Interest rates of major banks
After the reduction of Caixa's real estate financing interest rate in April 2018, the main banks maintained very similar minimum rates. Then, check out some of them for the Housing Finance System (SFH) and the Real Estate Financing System (SFI).
Caixa Econômica Federal:
9% pa + TR (SFH);
10% pa + TR (SFI);
7.85% pa + TR (pro-quota FGTS).
Banco do Brasil (does not operate SFI):
9.24% pa + TR (SFH);
9% pa + TR (pro-quota FGTS).
Itaú / Unibanco (does not operate pro-quota FGTS):
9% pa + TR (SFH);
9.5% pa + TR (SFI).
Bradesco (does not operate pro-quota FGTS):
9.3% pa + TR (SFH);
9.7% pa + TR (SFI).
Santander (does not operate FGTS pro-quotaholder):
9.4% pa + TR (SFH);
9.9% pa + TR (SFI).
Finally, with this information, it becomes much easier to understand, negotiate and choose the best interest rate on real estate financing to buy your own home.