Getting Mortgage in Brazil

krautboy

Member

Member since 15 April 2019

N/A

krautboy

15 April 2019 17:24:15

krautboy

15 April 2019 17:24:15

N/A

Hi everyone,

im originally from Germany but live in the UK at the moment with my wife who is from Brazil.

We are thinking of moving to Brazil in a few years and i would like to prepare for that as much as possible.

This question may be very specific, so not sure whether its correct to ask it here.

Basically I would like to understand on whether we can get a mortgage in my wife name for a property in Brazil. She fulfils all the requirements and owns an apartment in Brazil out right, which is currently rented out.

We are thinking of buying a property in the South of Brazil. We do not have the cash to pay for it outright but about 50% of it. So i was wondering whether in Brazil it is an option to have something like a remortgage or an equity release on the existing property and we would be able to use that cash to finance the other 50 %. Then we would pay down this new "mortgage" with the income we get from the both rented out properties.

Is that something that works in Brazil?

Thanks,

Krautboy

Texanbrazil

Brazil Advisor

Member since 10 February 2018

Foz do Iguaçu, Paraná

Texanbrazil

24 April 2019 15:45:24

2744

Texanbrazil

24 April 2019 15:45:24

2744

Foz do Iguaçu, Paraná

1. Is she a resident in Brazil? Still have CPF? If she does not resided in Brazil, she may have to be a foreigner is she has no income in Brazil. That may be big issue) Have her speak with her bank. She will need a credit check and proof of income (30 dedicated to the loan (did not make sense to me! What if job was gone?)
2. Mortgages are simular as in other countries. Most banks will go max of 80-90% of value and in the past Banco do Brazil required an account with them n order to be granted a mortgage from BoB
Bank requirements:
•Health declaration – Declaração Pessoal de Saúde
•Business consultation and sale option – Consulta de Negócios e Opção de Venda -Buyer authorization for the release of sellers certificates
Personal Documents:
CPF – buyer and seller
• RG or RNE – buyer and seller
•Buyer's Marriage certificate, except for singles
•Seller‘s marriage certificate, except for singles
•Proof of zero back taxes for the buyer and seller – CRF/FGTS, SRF/PGFN and CND/INSS

I found that a "legal advisor" was better than just an attorney. They will help finding if property has paid all taxes and loan is in force.
Real Estate Agents do not have exclusive rights on most properties. Urban loans are somewhat easier.
I may case it was straight cash. I did have a legal advisor help which was recommended by my bank. I did not then if I was certain if I would stay, so having a mortgage and then leaving would be too much of a hassle.

sprealestatebroker

ViP

Member since 01 May 2018

Santo André

sprealestatebroker

08 May 2019 18:08:05

1216

sprealestatebroker

08 May 2019 18:08:05

1216

Santo André

Mortage rates for qualified buyers are still high, in Brazil, you are talking 8-9-10% APR.

If you buy a property below some threshold you might qualify for CAIXA rates which provide subsidized loans, usually one or two points lower.

There's limited competition from banks servicing your home purchasing, so there is little incentive to cut rates.

I would stash as much as possible on the downpayment to lower the interest paid and get favorable terms.

There are some new banking entities, mostly Agribusiness Coop Banking Entities that are offering competitive rates ( mostly from Parana, but branching out in Sao Paulo )
granted your credit and income profile will need to be pristine. .

Mainstream Banks ( Itau, Brasil, Santander, Bradesco ) do not have great rates.