How to get a Mortgage Loan? Take credit with mortgage? Mortgage your home in exchange for money with cheaper cost is worth? The mortgage loan is still little used in Brazil, but has been growing with the development of civil construction. This is a way to apply for a personal loan to pay off debts, raise funds as working capital, or to invest in your own business, taking as collateral a residential or commercial property.
The mortgage loan or mortgage has one of the lowest bank interest, in relation to overdraft, credit card and personal credit. Mortgage interest rates are around 1% per month. But experts urge caution in using the home equity loan. In Brazil, the owner of the property placed as a loan guarantee receives a cash limit of up to 50% of the value of the dwelling.
It is common for banks to require that the property be registered, that the construction of the land be registered in a notary’s office and that the taxes be removed. Some banks accept the land without construction as collateral or others not like the case of HSBC. The risk of loss of good occurs in cases of default of more than 90 days, which period may vary according to the policy of the creditor financial institution.
As the bank loan risk is low, or there is no credit in this mode, it is possible to acquire a larger volume of money for a longer repayment term compared to other types of credit is a great alternative.
Some banks finance up to 70% of the value of the property. But the redemption in case of default is much more complicated, as the lender is indirectly responsible for the property, it is possible to extrajudicially take the borrower to put it up for sale as a form of debt settlement. In this case, the property will go to the auction.
Types of Mortgage Collateral
At us, it is possible to guarantee a commercial or residential urban property, land or rural property, in the minimum amount of R $ 20 thousand, for mortgage loan of up to 70% of the value of the property. The maximum term for payment is 360 months (30 years). The installments are discounted in the current account of the borrower.
You must have an account in the Cashier. At Brazillian Banker, the loan with property as collateral has financing of up to 60% of the value of the property that is worth between R $ 20 thousand and R $ 5 million. The maximum term for payment is 15 years. The rates revolve around 1.4% per month.
Mortgage Terms, Rules and Conditions
To make the mortgage loan or home equity loan available, financial institutions follow a series of rules to verify that the client is even able to afford the debt that he will acquire.
Therefore, information on the value of the property, the contractor’s family income, commitments to other financial institutions, monthly expenses with water, electricity, telephone, fuel, health, education, rental and other more than necessary will be requested.
Additional costs on mortgage
The mortgage loan contractor is also responsible for paying much of the property assessment fees, taxes and extra costs that are required for the contract to be completed, all of these details are informed by the bank agent sought.