Loans with real estate as collateral exceed R $ 12 billion this year. Understand the benefits
RIO – Owner of a restaurant in Belo Horizonte, businessman Ricardo Rodrigues had planned to use photovoltaic energy in the project. In the search for credit of account, he made an agreement with the bank. He obtained a loan with the property he lives in as a guarantee for a term of five years and a rate of 0.62% per month.
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The home equity loan modality, also known as home equity, is growing. According to data from the Brazilian Association of Mortgage Entities (Abecip), the value of concessions increased 46% from January to August compared to the same period last year. The volume of credit during the period amounted to 12.319 billion reais until August.
“What interested me first was the price. If I am financially sound and serious, I have no problem placing a property that costs almost 3 times the value of the loan taken as collateral – said Rodrigues, who would not hesitate to repeat the strategy if there is a new loan .
There are available market interest rates of 0.6% per month adjusted by the IPCA, the official inflation index, and fixed rates of 0.78% per month. In the lines linked to the IPCA, there is a risk of an increase in inflation. The 12-month cumulative rate up to September is 10.25%.
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Using the asset as collateral reduces the cost of credit because it reduces the risk of default. The delay is also usually longer, which contributes to the feeling that the portion fits in your pocket. It is a cheaper option than other types of credit. The private sector payroll, for example, has rates of 0.98% to 4.2% per month.
– There is a better knowledge of the type of credit and a greater appetite on the part of financial institutions to lend through it – said the president of Abecip, Cristiane Portella.
The average loan value, according to Cristiane, is around R $ 160,000 to R $ 170,000. Each financial institution defines its minimum transaction value. The loan limit is generally 60% of the value of the property used as collateral.
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According to the director of real estate affairs of Santander, Sandro Gamba, one of the advantages is that there is no specific destination, it is possible to apply for the loan for the purpose that the client wants.
So far, the target audience for this type of financing has been people wanting to renovate their property and entrepreneurs looking for a cheaper credit option to invest in their own business.
According to Home Unit Vice President at Creditas, Maria Teresa Fornea, the line has also been sought after by people who want to swap more expensive debt, such as credit cards and overdrafts, for credit card debt. credit. home equity. The company saw financing demand increase by 50% in the first half of the year.
– The use for renovation and working capital has increased significantly. Before, we had a much higher salary profile. But, today, the contingent of small entrepreneurs who use this type of product is increasing, precisely because of the pandemic period that we went through, when many small businesses needed credit – said Maria Teresa.
Pay attention to hiring
For Abecip, the modality can still undergo advances, such as the flexibility of the release of money by the institution that releases the loan.
– Today, we are working on the immediate release of the resource. What the market should tend is that the person does not get all the value at once, but according to the possibility – said Cristiane.
To obtain financing, ownership is temporarily transferred to the creditor, until the debt is paid off, in a process called chattel mortgage.
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During the loan, the owner continues to dispose of the property as he sees fit, and can even sell it, as long as the money is used to pay off the debt. This line of credit can only be applied for with fully repaid goods.
If you can’t pay off the debt, the property can be put up for auction. With the money collected, the financial institution repays the debt. If the auction pays more than the amount owed, the difference goes to the customer who lost the property. But experts suggest that renegotiation could be a way to avoid this outcome in the event of financial difficulties.
– If the person has difficulty paying, they go to the bank, and the institution will be interested in renegotiating. The bank does not want to become a property manager – said Sergio Cano, MBA professor in property development and construction management at FGV.
Pay attention to costs, such as tariffs and indexes that correct down payments, in addition to the Financial Operations Tax (IOF).
– In addition to interest, there are property assessment and registration fees paid for the trust sale on behalf of the creditor. Usually, financial officers incorporate these rates into the transaction and put them into the credit that will be released, but that’s a cost to factor in – Cano reflected.