RIO DE JANEIRO, BRAZIL – Santander announced on Tuesday, January 7th, the raising of the financing limit to 90 percent of the property’s value, up from the previous 80 percent limit.
In the midst of the real estate financing rate dispute in the country, the bank chose to resort to a new weapon: the option of providing a lower down payment, thus becoming the only institution in Brazil to work with a minimum ten percent down payment.
The new ceiling is applied to the Constant Repayment System (SAC), a model in which installments are adjustable and tend to decrease over time.
The financing is payable in installments of up to 420 months, 35 years, and the conditions are valid for the purchase of units starting from R$90,000 (US$22,500).
In a note, the bank adds that “the client may add more than one person’s income, regardless of kinship, for credit analysis and use the Severance Premium Reserve Fund (FGTS)”. As a rule, approval is subject to personalized credit analysis.
Rate War
Santander’s interest rates remain the same, from 7.99 percent per year plus the government Referential Rate (TR). Currently, the bank offering the lowest minimum rate is Caixa, at 6.5 percent per year plus TR for clients with a long relationship with the bank.
With the drop in the SELIC rate, currently at 4.5 percent, financial institutions have been reducing their interest rates on real estate financing and applying new types of credit.
Granting inflation-linked financing (using the IPCA index) is now possible and Caixa has announced that it will soon be launching a pre-fixed interest rate financing.