Real estate financing portability still worth it?

The fall in the basic interest rate (Selic) registered in recent years has caused many people with financed property to look to banks in search of portability, a transfer in contracts. In other words: change banks to get lower interest rates on financing. Now, with the beginning of a new hike in interest rates, this search has accelerated. It may be the last opportunity for the Brazilian to refinance a house on more favorable terms.

According to data from the Central Bank (BC), the number of requests for portability of real estate financing grew 72% in April, from 3,947 requests in 2020 to 6,785 requests in the same month this year. In March, the increase had been 144%.

According to Mario Cezar Oliveira, financial educator at Abefin ​​(Brazilian Association of Financial Educators), this increase is due to the arrival of the crisis, which reduced the income of most Brazilians. Also the possibility of changing financing became more known to people.

“Portability remains high, whether because of people’s awareness or the current interest rate compared to when the contract was signed,” he said.

According to Oliveira, even with the new Selic high cycle, the renegotiation of the financing contract is still worth it. The Selic rose from 2% a year to 5.25% and should continue to rise in the coming years.

“All the people who bought real estate in the last few years before interest rates went down certainly contracted interest rates higher than those practiced in today’s new contracts. Even with the 6.5% Selic rate [prevista para o fim de 2021], the average contracts of about five years ago, for example, were much more expensive, so there is room for negotiation,” he said.

difference is big

The request of UOL, Alberto Ajzental, coordinator of the real estate business development course at FGV, calculated how much the owner would save in an 80% financing of a property worth R$ 250,000 for 240 months. See how much you would save if the interest on the contract followed the Selic:

2016

  • Selic: 14.25%
  • Total amount paid: R$ 444,660

2021

  • Selic: 5.25%
  • Total Amount Paid: BRL 379,604

Total difference: BRL 65,056

Therefore, those looking for the portability of a loan that started about five years ago, when the interest rate was higher, can still save a relevant amount. According to Gilberto Braga, a professor at Ibmec-RJ, anyone interested in portability should first look to the bank itself to try to renegotiate.

“Normally, what we suggest is that a process of conversations be carried out with the financing agent itself, because that way you don’t need to make new documents between the parties,” he said.

“When you change institutions, you have all the required formalities. Today, there is the possibility of simulating new contracts. Just do this and present it to the original bank for a conversation,” he stated.

According to Braga, costs vary, depending on the location, purchase of insurance and other items. The important thing is to observe all the fees involved, asking for the CET (Total Effective Cost). Still, the renegotiation is usually worth it, as the amount saved can cover this process.

Furthermore, it is currently the best time for a renegotiation, as the Selic should continue to rise, at least in the short term.

“Until the presidential succession scenario is defined, this is the best moment. Now, when you talk about the medium and long term, it is impossible to say when rates could be better,” he said.

How to make?

The step-by-step way to carry out a real estate financing portability is simple. Check out:

  1. Simulate a new financing, even if it is through the internet, in a competitor bank.
  2. With the simulation in hand, the client can go to the bank where he has the financing and ask for a renegotiation.
  3. If the current bank does not want to trade, the customer can go to the new bank and ask for portability.
  4. The new bank will carry out a credit analysis and, if approved, will ask for the documents necessary for portability and will start the process.
  5. With the process approved, the customer must sign the contract proving the change of financing to the new financial institution