Does my age interfere with the real estate financing period? It not only interferes in real estate financing, but also in “long-term loans” such as payroll loans and direct consumer credit. Real estate financing in recent years has made a spectacular leap both in the volume of concessions for home buyers and in the drop in interest rates, conditions and facilities that are being offered by Brazilian financial institutions.
In Brazil there are three most important types of real estate financing that the consumer can contract.
1) Housing Financial System ( SFH ) – in this modality, the credit granted by banks and credit providers is restricted to a maximum of R $ 500 thousand to purchase real estate, the resources used are savings and the FGTS. In the Housing Finance System (SFH) institutions are required to offer the modality but are subject to pre-determined rules, the maximum interest rates applied are 12% per year plus TR.
2) Mortgage Chart ( CH ) – financing modality for the purchase of real estate with a value higher than R $ 500 thousand, banks are free to apply the interest rate they deem appropriate.
3) – Real Estate Financial System ( SFI ) – in this system, institutions can offer terms, interest and other conditions or facilities as they wish. To provide the financing, the resources are from the creditors themselves.
Minimum and maximum age
The minimum age to obtain personal loan and credit for purchase of durable goods in real estate financing is required to be 18 years to sign any contract. In addition to the minimum age, institutions limit the maximum age for contracting some types of financing between 79 and 80 years and 6 months. ie depending on the current age, if it exceeds the age limit, the institution denies the funding.
Real Estate Financing is a credit operation that involves risks for creditors, like any financial transaction, banks and financiers are looking for ways and means to protect themselves and avoid delinquency and the resumption of the borrower’s property are factors taken into account at the time of grant the credit.
To obtain real estate financing, the interested party must take into account two factors: 1º. Having any kind of credit problem or restriction, will prevent the release of the funding. 2º. At age, you will not be able to finance real estate if the term of the chosen financing exceeds the ceiling set by the bank. Example: If you are 55, the maximum term is 25 years.
As for guarantees, most financial institutions require that the property be fiduciarily disposed of, in the fiduciary alienation the property remains as a guarantee of the financing and will only really be the borrower when he finish paying the entire plan, and if he can not pay the installments, he will lose the property.