Ownership in the making: Increased interest raises financing costs and scares borrowers on handover | Economie

Last week, Diana took the keys to the property and, as part of the process, signed a mortgage agreement with the remainder of the amount she would pay for the apartment.

Then that joy gave way to tension: In September 2021, the bank estimated that its financing would result in a total amount of R$280,000. In April of this year, this amount increased to 313,000 Brazilian reals – With an increase of approximately 33 thousand Brazilian reais, which is equivalent to approximately 10% of the initial value of the property (320 thousand Brazilian reals).

“I would be able to pay the financing without exaggeration, but if I had any change in income the scenario would probably not be positive. In addition, the amount I would pay more in installments could be invested for me to depreciate the property in the future,” Diana said.

When purchasing real estate in the factory, the consumer generally makes a down payment and pays installments to the construction company during the works. However, once handed over, the remainder of the amount due is financed by the bank. This financing agreement takes into account the interest in effect at the time it is signed – not at the time the property is purchased.

Between the signatures on the purchase of the property and the financing agreement, two to three years can pass – and it is very difficult to know in advance how much interest you will receive.

This is what happened to Diana. In the period when the designer bought the apartment and signed the financing agreement, prime rate, Selic, Increased by more than five percentage pointsfrom 6.25% p.a. to 11.75% p.a.

Market expectations of a new interest rate hike at the MPC meeting (Coboom) in early May.

Borrower will need higher income

Like Daiana, those who have bought a property and are waiting to get the keys this year, in addition to the risk of paying higher premiums in financing, face the possibility of having to prove a higher income to the bank, according to their expert advisory. g 1.

A simulation conducted by startup MelhorTaxa shows that a person who has purchased a property valued at 300,000 R$ and made a down payment of 60,000 R$ can pay more than the initial value of the property (with the down payment) at the end of the financing.

In order to hold a financing contract of R$240,000 over 30 years in April of this year, the borrower will have to prove a monthly income of R$240,000. 11 thousand Brazilian riyals and will pay more than 331 thousand Brazilian riyals in the total value of the premiums.

If the same credit is contracted In April 2020 (At the time of purchasing the property), the person will have to prove income 8 thousand Brazilian riyals And pay a little more 240 thousand Brazilian riyals in the total amount of financing.

It should be noted that anyone who buys property in the factory also pays premiums while working, until the property is ready. The debit balance is adjusted monthly by the National Building Cost Index (INCC) for the period. In this way, the value of the property to be financed by the client is never equal to the estimated value at the beginning of the contract, as it is corrected during construction.

In April of this year, the index recorded an inflation of 0.87%, according to Getulio Vargas (FGV).

In other words, when financing in 2022, with high inflation and high interest rates, the The above simulation borrower will have to demonstrate a higher income of R$3,000 and pay approximately R$91,000. at the end of financing.

According to Paulo Chabat, CEO of MelhorTaxa, before financing a property, whether it is new or used, it is necessary to compare the total actual cost charged by financial institutions.

“The rate that the banks charge has already exceeded 10%, but you can get a slightly lower rate. Acquisition of a property in the factory requires care, since there are people who end up buying on impulse and then cannot prove income to get financing after handing over the keys,” Shabat explained.

Comparison of banking services

The borrower should also compare rates charged by insurance — which are required in all types of mortgage financing — and be aware of the additional services that banks include in the contract, such as credit card, private pensions, among others.

In the assessment of accountant Anderson Fernandez, concessionaire of Azul Empréstimo in the interior of Tocantins, at a time of inflation, INCC weighs on the pocket of those who bought real estate at the plant, but, on the other hand, increases the owner’s equity when settling the debt.

“In Brazil, we don’t have the privilege of low interest rates for our whole life. We’re back to reality now [com o aumento da Selic]. To purchase their own real estate under these conditions, Brazilians end up extending the financing tenure and reducing expenses,” he said.