Real Estate Financing Guide - SAC vs PRICE Systems 2024

Real estate financing is one of the main ways to achieve the dream of homeownership in Brazil. With interest rates that can vary between 6% to 12% per year, it’s essential to understand how to simulate and compare different options before signing the contract.

The choice between SAC and PRICE systems can result in differences of tens of thousands of reais at the end of the financing. Let’s analyze how each modality works and how to calculate which is most advantageous for your profile.

How real estate financing works

Home financing allows you to acquire a property by paying only a down payment of 20% to 30% of the total value. The remainder is paid in monthly installments that can extend for up to 35 years.

Banks and financial institutions offer the borrowed money through mortgage guarantee of the property itself. This means that in case of default, the property can be repossessed by the institution.

Financing requirements

To be approved for real estate financing, you need to meet some basic criteria:

• Proven income: minimum of 3 times the installment value
• Clean CPF: no restrictions in SPC/Serasa
• Age: between 18 and 80 years at contract end
• Down payment: at least 20% of property value
• FGTS (severance fund): can be used as down payment or amortization

Family income can be combined between spouses or up to 4 people to increase purchasing power.

Required documents

The documentation required by banks is extensive, but essential for approval:

Personal documents:

• ID, CPF and proof of residence
• Birth or marriage certificate
• Income Tax returns for the last 2 years

Income verification:

• Last 3 pay stubs (CLT labor law employees)
• IR declaration and articles of incorporation (self-employed)
• Bank statements for the last 3 months

Property documents:

• Updated registry from notary
• Paid IPTU (property tax)
• Negative debt certificates

Financing simulation

Simulation is mandatory before choosing any financing. It allows you to compare different banks, terms and amortization systems to find the best option.

Use our financing calculator to simulate different scenarios for free.

SAC System

The Constant Amortization System (SAC) amortizes a fixed amount of the outstanding balance each month. Installments start higher and decrease progressively.

SAC characteristics:

• Constant amortization of principal
• Interest calculated on decreasing outstanding balance
• Decreasing installments over time
• Lower total interest payment

SAC Example: Financing of R$ 300,000, 360 months, 8% per year

• 1st installment: R$ 2,833.33
• 180th installment: R$ 2,083.33
• 360th installment: R$ 1,338.89
• Total interest: R$ 433,200

PRICE System

The PRICE Table maintains fixed installments throughout the financing. Initially, you pay more interest and less principal amortization.

PRICE characteristics:

• Fixed and equal installments
• Increasing principal amortization
• Decreasing interest on outstanding balance
• Higher total interest payment

PRICE Example: Same financing of R$ 300,000, 360 months, 8% per year

• Fixed installment: R$ 2,201.29
• Total interest: R$ 492,464
• Difference from SAC: R$ 59,264 more in interest

System comparison

The table below compares both systems for financing of R$ 300,000 over 30 years at 8% per year:

SAC is more economical in the long term, but requires greater initial payment capacity.

Factors that influence financing

Several elements directly impact the final cost of your financing. Knowing them helps negotiate better conditions.

Interest rate

The interest rate is the most important factor in financing cost. It varies according to:

• Banking relationship: longtime customers get better rates
• Income and assets: the higher, the lower the risk and rate
• Resources used: FGTS (severance fund) and savings have lower rates
• Insurance: contracting can reduce interest
• Property value: more expensive properties have lower rates

A difference of 1% per year can represent tens of thousands of reais more in financing.

Payment term

The term directly influences the installment amount and total interest paid:

Longer terms:

• Smaller installments
• More interest paid in total
• Higher default risk

Shorter terms:

• Larger installments
• Less interest paid in total
• Faster payoff

The ideal term balances installments compatible with your income and total interest savings.

Down payment amount

The down payment significantly impacts financing conditions:

• Minimum down payment (20%): higher financed amount and interest
• High down payment (40-50%): lower risk and better rates
• FGTS (severance fund) as down payment: reduces amount to be financed
• Own resources + FGTS: most advantageous combination

The higher the down payment, the lower the risk for the bank and better the conditions offered.

How to calculate installments

Installment calculation varies according to the chosen system. Let’s see practical examples of each modality.

Practical SAC example

For financing of R$ 400,000 over 25 years with 7.5% per year rate:

Financing data:

• Amount: R$ 400,000
• Term: 300 months
• Rate: 7.5% per year (0.6082% per month)
• System: SAC

Calculations:

• Monthly amortization: R$ 400,000 ÷ 300 = R$ 1,333.33
• 1st installment: R$ 1,333.33 + (R$ 400,000 × 0.6082%) = R$ 3,766.13
• 150th installment: R$ 1,333.33 + (R$ 200,000 × 0.6082%) = R$ 2,549.73

Practical PRICE example

For the same financing using PRICE Table:

PRICE formula: PMT = PV × [(1+i)^n × i] / [(1+i)^n - 1]

Result:

• Fixed installment: R$ 2,972.84
• Total to pay: R$ 891,852
• Total interest: R$ 491,852

The difference between systems in this example is R$ 67,429 in favor of SAC.

Use our financing calculator to simulate your specific case with different amounts and terms.

Tips to secure financing

Following some strategies can increase your approval chances and secure better conditions:

Before applying:

• Pay off all overdue debts
• Concentrate transactions in one main bank
• Maintain regular savings history
• Organize all documentation in advance

During negotiation:

• Request simulations from at least 3 banks
• Negotiate rate, term and amortization system
• Ask about relationship discounts
• Consider using FGTS (severance fund) to reduce financed amount

To increase approval:

• Have down payment higher than 20%
• Include spouse as co-debtor
• Prove extra income (rent, investments)
• Consider used property (easier financing)

Free online simulator

Our calculator offers complete and free simulation of the main financing systems. You can:

• Compare SAC vs PRICE side by side
• Test different terms and rates
• Calculate impact of higher down payments
• Simulate FGTS (severance fund) use
• Generate detailed spreadsheets

The tool uses official formulas from banking systems and allows real-time adjustments to find the ideal financing for your profile.

Access now the financing calculator and discover which system is most advantageous for you.

Frequently Asked Questions

What’s the difference between SAC and PRICE?

In SAC, installments start high and decrease monthly, resulting in less interest paid in total. In PRICE, installments are fixed throughout the financing, but you pay more interest at the end. SAC is more economical if you have income to pay higher initial installments.

Can I use FGTS to pay off financing?

Yes, FGTS (severance fund) can be used in three ways: as down payment, for outstanding balance amortization or total payoff. To use for amortization, you need at least 3 years of work under CLT (labor law) regime and the property must be for own residence.

What’s the maximum term for real estate financing?

The maximum term is 35 years (420 months), but the borrower’s age plus the term cannot exceed 80 years. For example, if you’re 50 years old, you can finance for a maximum of 30 years. Longer terms reduce installments but significantly increase interest paid.

Is it possible to transfer financing to another bank?

Yes, financing portability allows transferring your contract to another bank with better conditions. The new bank pays off your current debt and you start paying lower installments. You must be current on installments and have at least 2 years of contract.

How much down payment do I need?

The minimum down payment is 20% of property value for the Housing Finance System (SFH). For the Real Estate Financing System (SFI), some banks accept 10%. Higher down payments result in better interest rates and lower installments.

Can I prepay financing installments?

Yes, you can amortize by paying installments in advance or fully pay off the financing at any time. Since 2013, there’s no penalty charge for early payoff. Amortization reduces the outstanding balance and can decrease installments or term.

How does the Selic rate affect my financing?

The Selic rate directly influences real estate financing rates. When Selic rises, financing interest also increases. If you already have contracted financing, the rate remains fixed. For new contracts, it’s better to finance when Selic is low.