Loan with Guarantee - Home Equity

Home Equity, also known as Credit with Real Estate Guarantee is a common Credit in the United States and in European countries

It has recently become aware of Brazilians and has become another option in the Market, due to its ease of granting, as it has a Real Security Asset, also preferred by borrowers for the ease in releasing the Credit, in addition to the ease in releasing, another issue that is advantageous to borrowers are interest rates, which are lower.

Credit risk

Credit Risk is nothing more than an estimate calculated by Banks and finance companies of the probability of not receiving the borrowed money, whether in whole or in parts, from this analysis the interest is defined, that is, the greater the Risk of not receiving the higher money is the interest rate, on the other hand, the lower the Risk, the lower the Interest Rate. Regardless of the size of the Risk, when lending money, the Bank or Finance requires a Guarantee, that is, in addition to the pre-analysis carried out before via the borrower's Score, something is put as Guarantee, Duplicates, Guarantor, Vehicles, now common in Brazil Properties.

Fiduciary Sale

When using the Property as a Loan Guarantee, the Property is transferred to the Institution that is providing the Credit, i.e. the property is transferred, but ownership remains with the owner, i.e., if the property given as guarantee is the only one borrower's property, he may continue to live in it normally, when the credit is fully paid off, the property for the borrower is resumed. the data varies for each institution, however a current market research pointed out that the rates are from 0.70%, the values ​​vary according to the property valuation (Performed by an inspector of the Financial Institution).

Conclusion

This Credit modality is undoubtedly the best option for those who own a property and want to pay lower fees, higher values, however the documentation of your Property must be in agreement, Deed and Registration must be up to date, without these it is not possible to obtain the Credit. Many Companies have even used this modality instead of the BNDES itself, the modality releases up to 4 million reais by CNPJ, but remember to carry out a well-structured financial planning before using this Credit modality, because in cases of default the property it can be taken and auctioned off. If you need support for this financial planning, contact us we will be happy to help you.

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