Real Estate Loan Consolidation- What is it? How it works?

The Real Estate loan consolidation is a loan with property in guarantee. That is, the bank lends you money (which you use as you wish) and your property is placed as collateral for that loan, in case you do not pay the installments on time.

It is sometimes also mistakenly called a “mortgage” (which is similar but has fallen into disuse).

As the risk of the lender losing money is low, the terms of this loan are usually one of the best in the market.

And that’s why this may be a good one for you!

Who can apply for Real Estate loan consolidation?

It is not enough to have a property to apply for the Real Estate loan consolidation. To apply for the loan the institutions are careful and you must submit all the required documentation.

First it is necessary that the property is in your name and removed. It is also necessary to present a source of income – which will guarantee to the financial institution its capacity to pay the installments of the acquired credit.

Real Estate loan consolidation Values ​​and Timeframes

Real Estate loan consolidation Values ​​and Timeframes

The amount released on this loan is usually up to 60% of the value of your property, usually starting at R $ 30,000.

The term for releasing the amount in your account is usually 1 to 2 months, and the payment term varies from 3 to 20 years.

The installment amount can not exceed 30% of your family income (which may be even lower if you already have your income committed to other debts).

Advantages of Real Estate loan Consolidation

Interest rates are among the lowest on the market. As it is usually a long-term contract, the value of the debt is usually corrected for inflation, and on this amount the interest is increased, providing an advantageous action for the client.

Values ​​released can be very high

Longer payment period

Generally accepted negatives

For income verification purposes, you can add your income to that of your next of kin

Disadvantages and Limitations of Real Estate Loan Consolidation

Disadvantages and Limitations of Real Estate Loan Consolidation

The property usually has to be removed.

In smaller cities or locations where it is more difficult to sell the property, the chance of getting a loan is lower.

It’s a long contract. It has to be very well planned.

If the debt is not paid, you will lose your property. So to avoid problems, you have to do a great planning of how you will spend this money.

What documents can be ordered?

  • RG and CPFCompany Proof of Income
  • Marriage certificate (if applicable)
  • Property Deed
  • IPTU card
  • Negative certificate of real liens of the RGI (General Property Registry)

Who has a name restriction can do a consolidation?

Who has a name restriction can do a Refinance?

It is difficult, but some institutions can make exception. However, interest rates in these cases are usually higher. It is worth evaluating whether the action is worth it or not.

Which real estate can be used in consolidation?

Residential and commercial real estate can be offered as collateral. However, real estate in the process of inventory is rarely accepted by financial institutions for Real Estate loan consolidation.

The same applies to real estate located in areas that are considered risky or still under construction. Banks and financiers tend to reject such a proposal.

It is worth mentioning that it is very important to make sure the institutions that do this type of service

Can I Request More Than One Real Estate Consolidation?

In this case, it depends on the credit analysis and standards of the financial institution consulted, as you need to prove the ability to pay both loans at the same time. The general rule is that debt installments do not commit more than 35% of your budget.