Last year, Brazil followed the world trend and lowered the basic interest rates of the economy to try to contain the crisis. With Selic at 2% ( Data from 2020 ), one of the most benefited sectors was real estate financing, which grew 56% compared to 2019, according to data from the Brazilian Association of Real Estate Credit and Savings Entities (Abecip) .
And with the boom in the real estate market, terms like ITBI and SAC became part of the daily life of many Brazilians. In this text we will explain each one of them to simplify your life when making a loan.
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Acronyms and terms of real estate financing
Fiduciary alienation - When a person acquires a property through financing or consortium, that asset remains alienated with the financial institution as a guarantee for payment of the debt. Properties in these conditions must have their financing paid off in advance for the conclusion of a negotiation process.
Permit - Document issued by a public agency that authorizes the construction of a property. It should be observed mainly when buying real estate in the plant.
Property registration certificate - Document provided by the Official Property Registry Office that proves ownership of that property and whether it is regular according to the City Hall.
Total effective cost - Final value of the financing that includes all costs of the credit operation including the value of the asset acquired + charges. It is important to consider it when defining the financing term for the operation to be advantageous.
Deed - Document registered with a notary that proves any movement in relation to the immovable property, be it division between heirs, purchase or sale.
Formal sharing - Formalizes the division of immovable property between the heirs of the former owner or in divorce proceedings. In the case of sale of properties with more than one owner, it is necessary that everyone agrees with the transaction for it to be carried out. Remember to confirm this information before applying for credit with a financial institution.
FGTS - Guarantee Fund for Length of Service. Calm down that we didn’t get confused: FGTS continues to be a labor benefit, but it can be used to purchase your property, both to give the entry and every 2 years for the reduction of installments.
Habite-se - Document that certifies that the property was built in accordance with the rules of the municipality where it is located. The request must be made by the construction company and the inspection is the responsibility of the City Hall. Without it, it is not possible to apply for financing.
Property on the floor plan - Name given to architectural developments that are sold before they are completed. They have a lower market value, but are corrected by the INCC (we will talk about it in a moment).
Incorporator - Individual or legal entity responsible for the real estate project.
INCC - National Civil Construction Cost Index calculated by the Getúlio Vargas Foundation. It is used to correct parcels of properties that are still under construction. It works like this: as the construction progresses, inflation impacts on construction costs, what the INCC does is to apply an adjustment to the final installments so that the contract value is compatible with the project.
ITBI - Tax on Real Estate Transactions. Municipal tax levied on the total value of the property at the time of the transfer of ownership. In addition to other notary fees, it can reach 5% of the total value of the acquired asset.
IR - Registration of incorporation. Document issued by the municipality where the property is located, attesting that the construction company or developer of the property is up to date with its tax obligations. Without this document, it is not possible to sell the property.
SAC - Acronym for Constant Amortization System. It is the most used system for the amortization of real estate financing installments in Brazil. With it, the value of the property is divided into equal installments, but more interest is applied to the first installment, so that amortizations are constant.
SACRE - Increasing Amortization System. In it, the installments go up during a certain period until reaching a ceiling, after which they gradually decrease with the drop in interest rates.
SBPE - Brazilian Savings and Loans System. Credit line that allows real estate financing to be made in up to 35 years.
SFH - Housing Financial System. Financing system with lower interest rates aimed at people with less purchasing power, eg Minha Casa, Minha Vida. It is used for the purchase of properties of up to R $ 1.5 million, allowing the financing of up to 90% of the value (in the SAC table).
Price System - Another Interest Amortization System, in which the first installment is composed mainly of interest. Throughout the financing, the amount paid with interest decreases and the amortization value increases, but with a stability in the value of the installment. Therefore, it is not highly recommended for long-term financing.
TR - Referential Rate. It is a fee based on the average remuneration of investments made in financial institutions. It is released monthly by the Central Bank and used as a financial index for various transactions, including real estate financing. In recent years, the TR has undergone little variation, being very close to 0%.
On the other hand, there are modalities that offer lower interest rates, but which are indexed by other indexes such as the IPCA, but which may be more interesting for those who wish to pay the debt in a shorter period in a scenario of controlled inflation.
So, evaluate your options well when hiring!
PSV - General Sales Value. Value that estimates the revenue of a project based on its potential for sale, considering the location of the property, movements in the sector, etc. It is also important for the owner who buys the property as an investment, as it will influence the resale or rental values of the property in the future.
Property Survey - When applying for financing you will notice that a Property Survey fee is charged. The inspection is nothing more than an inspection process carried out by an expert hired by the Bank who will grant the financing, to verify that the property is in accordance with what was presented in the purchase contract, especially in terms of values.
The fee is mandatory and its value varies according to the Bank. Here, a point of attention: Some institutions allow the value of the survey to be included in the financing. If you do not have a financial reserve this may be an option.
Real estate financing at Inter
If you are after the dream of home ownership, here is some good news: Inter grants real estate financing of up to 70% of the value of the property (new or used) with the option of payment in up to 30 years.
Currently, we work with 3 products, whose installment values follow different indexes:
- Financing with 4% interest per year + variation in Savings + TR (rate with a maximum ceiling of 10.17%);
- Financing with interest of 5% per year + IPCA (Inflation);
- Financing with interest of 7.7% per year + TR.
The hiring is done 100% online and already begins with the simulation that can be done through the website or the application. Then, a member of our team will contact eligible customers to fill out forms and submit documents.
After the credit has been approved, the money is released into the seller's account after 48 hours of registering the property in a notary.
You already have real estate financing in another bank, but did you find our rates more attractive? In the following video we show how to transfer your financing to Inter and save on installments.