Real Estate Financing Guide: How to Calculate & Get Best Rat
Complete guide to real estate financing in Brazil. Learn about SAC vs Price systems, calculate payments, and discover strategies for better rates.
Real estate financing is one of the most important financial decisions in a Brazilian’s life. With rates ranging between 6% and 12% per year and terms that can reach 35 years, choosing the right conditions can mean savings of tens of thousands of reais.
In this complete guide, you’ll understand how each amortization system works, calculate your ideal payment, and discover strategies to get the best conditions. Use our real estate financing simulator to test different scenarios.
How real estate financing works
Housing financing allows you to buy a property by paying only a down payment and financing the rest in monthly installments. The bank lends the money and you pay it back with interest over the years.
In Brazil, the main financing agents are Caixa Econômica Federal, Banco do Brasil, Itaú, Bradesco, and Santander. Each offers specific conditions that can vary significantly.
Types of financing
There are three main types of real estate financing in the country:
- SFH (Housing Finance System): For properties up to R$ 1.5 million, with lower interest rates and easier conditions
- SFI (Real Estate Financing System): For properties above R$ 1.5 million, with free market rates
- SBPE (Brazilian Savings and Loan System): Savings resources, for different value ranges
Required documents
To apply for financing, you’ll need to present:
- CPF (tax ID) and ID (originals and copies)
- Proof of income from the last 3 months
- Income Tax Declaration from the last 2 years
- Bank statement from the last 3 months
- Negative certificates (credit bureaus, notary)
- Property documents (registration, deed, etc.)
The analysis process usually takes between 15 and 30 business days, depending on documentation complexity.
Amortization systems
Choosing the amortization system defines how you’ll pay the financing. In Brazil, the two main ones are SAC and Price Table, each with very different characteristics.
SAC Table
In the SAC System, you amortize a fixed amount of principal every month. Since interest is charged on the outstanding balance, payments start high and decrease over time.
SAC Example: R$ 300,000 financing over 300 months
- 1st payment: R$ 2,500 (R$ 1,000 amortization + R$ 1,500 interest)
- 150th payment: R$ 1,750 (R$ 1,000 amortization + R$ 750 interest)
- Last payment: R$ 1,008 (R$ 1,000 amortization + R$ 8 interest)
SAC Advantages:
- Lower total interest
- Decreasing payments
- Faster amortization
Disadvantages:
- Higher initial payments
- Greater income commitment at the beginning
Price Table
In the Price Table, payments are fixed throughout the entire period. Initially, you pay more interest and less principal. Over time, this proportion reverses.
Price Example: Same R$ 300,000 financing over 300 months
- All payments: R$ 2,109
- 1st payment: R$ 609 amortization + R$ 1,500 interest
- 150th payment: R$ 1,054 amortization + R$ 1,055 interest
- Last payment: R$ 2,100 amortization + R$ 9 interest
Comparison between systems
| Criteria | SAC | Price Table |
|---|---|---|
| Initial payment | Higher | Lower |
| Final payment | Lower | Same as initial |
| Total interest | Lower | Higher |
| Initial amortization | Higher | Lower |
| Planning | Decreasing | Predictable |
For the example of R$ 300,000 at 6% per year over 25 years:
- SAC: Total paid R$ 525,000 (R$ 225,000 in interest)
- Price: Total paid R$ 563,100 (R$ 263,100 in interest)
The difference is R$ 38,100 in favor of SAC.
Payment calculation
The payment amount depends on four main factors: financed amount, term, interest rate, and chosen amortization system.
Interest and charges
Real estate financing rates include various components:
- Nominal interest rate: Between 6% and 12% per year
- TR (Reference Rate): Varies monthly, currently close to zero
- Credit opening fee: Between R$ 500 and R$ 3,000
- MIP insurance: Mandatory for financing above 80% of value
- Property appraisal: Between R$ 300 and R$ 800
CET - Total Effective Cost
CET is the most important indicator for comparing financing options. It includes all costs: interest, fees, insurance, and taxes.
CET Example:
- Nominal rate: 8.5% per year
- CET: 9.8% per year
- Difference: 1.3% additional costs
Always compare CET between different banks, not just the interest rate. Financing with lower interest may have higher CET due to fees.
Practical simulation
Let’s simulate different scenarios for a property worth R$ 400,000 with a down payment of R$ 80,000 (R$ 320,000 financing).
Different amounts
| Down Payment | Financed | SAC Payment* | Price Payment* |
|---|---|---|---|
| R$ 80,000 | R$ 320,000 | R$ 2,987 | R$ 2,517 |
| R$ 120,000 | R$ 280,000 | R$ 2,614 | R$ 2,202 |
| R$ 160,000 | R$ 240,000 | R$ 2,240 | R$ 1,887 |
*Initial values for 25 years at 8% per year
A larger down payment significantly reduces payment amounts. Each additional R$ 40,000 down payment saves about R$ 300 in monthly payments.
Different terms
For R$ 320,000 financing at 8% per year:
| Term | SAC Payment | Price Payment | SAC Total Interest | Price Total Interest |
|---|---|---|---|---|
| 15 years | R$ 4,488 | R$ 3,056 | R$ 188,000 | R$ 230,000 |
| 20 years | R$ 3,644 | R$ 2,674 | R$ 234,000 | R$ 321,000 |
| 25 years | R$ 2,987 | R$ 2,517 | R$ 276,000 | R$ 435,000 |
| 30 years | R$ 2,611 | R$ 2,348 | R$ 314,000 | R$ 525,000 |
Shorter terms mean higher payments, but substantial savings in total interest.
Use our real estate financing simulator to test your specific conditions.
Tips for getting better conditions
Some strategies can significantly reduce your financing cost:
Banking relationship
- Concentrate your financial activity with the chosen bank
- Maintain positive history for at least 6 months
- Negotiate packages that include checking account, cards, and investments
Down payment and income
- Minimum down payment: 20% of value (can reach 10% in some cases)
- Family income: Payment cannot compromise more than 30% of income
- Prove extra income: freelancing, rentals, investments
Negotiation timing
- Compare at least 3 different banks
- Negotiate at month/quarter end (manager targets)
- Use competing offers as arguments
- Consider banking correspondents (may have better conditions)
Borrower profile
Factors that improve your conditions:
- High score (above 700 points)
- Clean credit for at least 12 months
- Long banking relationship
- Stable profession (civil servant, CLT - Brazil’s labor law - at large companies)
- Age between 25 and 45 years
Early payment
Early payment can be total or partial. Both reduce interest paid, but have different strategies.
Total payment
Ideal when you have sufficient resources and financing has high rates. Consider paying off if:
- Financing rate is above 8% per year
- You have emergency reserves beyond the payoff amount
- There are no profitable investments available
Partial payment
You can choose between reducing the term or reducing the payment:
Example: Outstanding balance of R$ 200,000, payment of R$ 50,000
- Reduce term: Maintains payment, saves 5-7 years
- Reduce payment: Reduces by R$ 400-500 monthly
Reducing the term is usually more financially advantageous, as it eliminates more future interest.
Resources for payment
Common sources for early payment:
- FGTS (severance fund): Can be used every 2 years
- 13th salary and vacation pay: Annual extra amounts
- Inheritance or asset sales
- Investment withdrawals
Frequently Asked Questions
What is the average interest rate for real estate financing in 2024?
The average rate varies between 8.5% and 11% per year for individuals. SFH financing (up to R$ 1.5 million) has lower rates, while higher amounts through SFI have higher market rates.
SAC or Price Table: which to choose?
SAC is better if you have sufficient income for high initial payments, as you pay less total interest. Price is better if you prefer fixed and lower initial payments, facilitating financial planning.
Can I use FGTS as down payment for financing?
Yes, but only for properties up to R$ 1.5 million and if you don’t have another property financed through SFH. FGTS can also be used to partially pay off the outstanding balance every 2 years.
What’s the maximum term for real estate financing?
The maximum term is 35 years (420 months) for most banks. However, long terms significantly increase interest paid. The ideal term is between 15 and 25 years.
Is it possible to transfer financing to another bank?
Yes, through credit portability. You can transfer your financing to a bank offering better conditions (lower rate, different terms). The process takes about 30 days and there are no costs to the client.
How much down payment do I need to finance a property?
The minimum down payment is 20% of the property value in most cases. Some housing programs allow 10% down payment, but this results in higher payments and the need for MIP insurance.
What happens if I’m late with financing payments?
Late payments generate penalty interest of 1% per month, 2% fine on the payment, and credit bureau reporting. After 3 consecutive late payments, the bank can initiate property foreclosure proceedings. If facing difficulties, seek renegotiation before becoming late.