How to make your property a financial asset

Having a property of your own is one of the great dreams of most Brazilians. Home ownership often means security and stability, ensuring tranquility in the future, both for you and your family. One of the signs that prove this theory is the growth in demand for a secured home loan in recent years.

Perhaps much of this information is not new to you, but several companies are expanding a new perspective on the relationship of Brazilian families with the property, through credit with property guarantee (CGI). Currently, the popularity of CGI is growing at the same speed as the fintechs arrive in the Brazilian market. In 2020 alone, these operations grew 26%, compared to the previous year, totaling R $ 11 billion, according to data from the Central Bank (BC).

In several European countries and the United States, where it is known as Home Equity, credit with real estate guarantees is already part of the financial culture. This is because it is very common that, after the purchase of a house, the owner will place it as a guarantee to obtain money and continue his life projects. Thus, the property is now seen as a financial asset to leverage dreams and future projects.

How does home equity loan work?

Home Equity, also known in Brazil as Property Refinancing, is a type of loan in which you present a property as collateral, which reduces the risks of the operation for the financial institution, which can offer interest rates that are much lower than other types of credit. As the payment term is also extended, it is possible to have installments up to 70% cheaper than in other debts.

During the process, the property will be appraised and the customer will be able to receive up to 60% of the property’s value in a free-use credit with rates starting at 0.75% per month, plus inflation correction. The property’s registration will show the fiduciary sale to the financial institution, but the owner remains the owner of the property and can use it normally, make renovations, rent and even sell it.

What are the advantages of a secured home loan?

In addition to offering the lowest interest rate among loan modalities, credit with real estate guarantees has an extended payment term, which can reach up to 20 years, which makes the installments even smaller. Another advantage is the possibility of more than one bidder taking part in the operation, either to compose enough income to lend higher amounts or to present a third-party property.

This possibility makes Home Equity even more advantageous, since small businesses can enjoy free credit, with low interest rates and more time to pay. With good planning, it is possible to pay off debts, organize cash flow and make new investments for the company to continue growing, without having to depend on large banks or credit cards.

How do I use CGI to get rid of expensive debts?

Another possibility of Home Equity is to pay off very expensive debts, which compromise the monthly budget, and keep only a smaller portion, relieving the pocket and allowing the reorganization of financial life. In practice, you receive a larger amount in this type of loan, being able to settle debts on demand, which guarantees a good negotiation margin to decrease the total amount to be paid.

As the CGI values ​​are higher, it is possible to pay off several expensive debts that make Brazilians lose sleep with high interest rates, such as credit cards and overdrafts, as well as abusive interest loans. In addition to paying off debts, it is possible to have extra money to invest in new plans or get that dream off the ground.

How to make a loan with property guarantee?

The type of loan with secured property is offered by many banks, financial institutions and fintechs. Here at Zimobi we have a partnership with Bcredi, a fintech with over 12 years of experience in real estate credit. Know some of the advantages:

  • Rates from 0.75% per month + IPCA
  • Up to 15 years (180 months) to pay
  • Combined income in up to 6 bidders
  • Grace period of up to 90 days to start paying
  • Limit of up to 60% of the property’s appraisal value

Visit our special page to do a free online simulation! You indicate the value of your property, the loan amount you need and how many months you want to pay. You can simulate as many times as you want to find a parcel that fits in your pocket and then just make the request, sending some data, and a Bcredi expert consultant will contact you!