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Purchasing a new home can be a strenuous process as there are many factors to consider before investing in a house.
As the largest country in South America, Brazil is a fast-rising country with strong natural resources and wonderful amenities.
Whether you are a foreigner or a citizen, once you decide to purchase a house in Brazil, whether to live in yourself or as an investment purchase, it is advisable to seek guidance from locals who have already gone through the process so things can progress efficiently.
As part of the process, it is good to understand the different types of mortgages available in Brazil and how to go about them.
In this article, we will be providing you with all the pertinent information regarding Brazil Home Loans.
Types of Home loans in Brazil
There are two types of home loans available:
1. Fixed Rate Home Loans: This is a home loan option with a particular interest rate which doesn’t change for the entire term of the loan. The
2.Variable Rate Home Loans: This is a type of home loan in which the interest is not fixed and can change before the end of the loan term.
It is important to note all banks don’t offer the same products, i.e. the home loans offered by some banks may only be for the acquisition of commercial properties. Therefore, it is advisable to do a thorough perusal to see which bank’s package suits your needs.
The step-by-step process to get a Home Loan in Brazil
Just like any other loan, there are certain steps to take when you want to get a home loan in Brazil. They are:
1. The first step is to locate a competent broker who can aid you to explore your options for a Brazilian home loan.
2. The second step is to select a bank that offers the kind of home loan that suits your needs.
3. Next, provide the bank with the required paperwork and get an offer on principle.
4. The next step now is to look for a home that suits your taste and negotiate the price with the seller.
5. After that, iron out the details of your home loan with your broker.
6. You are expected to pay a 20% deposit in order to secure your purchase.
7. You and the seller will sign a deed which will be provided your notary, who will also record the sale.
8. The final step is for your broker to settle the remaining 80% of the payment and it is now on you to service the home loan and pay any outstanding fees.
The importance of using a Broker
In your quest to secure the best home loan, ensure to make use of a broker because even though it will add to your expenses, it will help you navigate the harsh mortgage market in Brazil and help you get the best deal.
However, you have to be cautious of fraudsters who pretend to be brokers. Don’t pay anyone upfront fees and ensure to ask for reference from family or friends before choosing a mortgage agent.
Brazil Home Loans for Foreigners
Whether you just moved to the country or you’ve been here for a while and you’ve finally decided to purchase your dream home, it is advisable to gather as much information as you can regarding the spoken and unspoken rules guiding mortgage for foreigners in Brazil.
Legal requirements to get a mortgage in Brazil (as a foreigner)
In Brazil, there is no legal restriction on the types or number of properties that you can purchase as a foreigner. However, if you wish to purchase land or property in rural and protected parts of the country, you must intend to move there within three years of buying it.
As regards getting a home loan as a foreigner, it all depends on the institution that you select and the chances of getting it are usually slim. However, if you find a bank that suits your needs and can provide some important documents, you should be able to secure a home loan.
How to get a mortgage in Brazil (as a foreigner)
To get a home loan in Brazil, you’ll be required to provide the following documentation, which usually differs depending on the bank you use.
- CPF (Cadastro de Pessoa Física) number.
- Copies of your personal identification documents (passport).
- Proof of legal residence in Brazil.
- Documents to support your application and prove you have enough money to service the loan.
- Land registry certificate of the property you’re purchasing.
- Any documents which aren’t written in Portuguese will have to be translated by a sworn translator or the bank won’t accept them.
Whether you’re a local or a foreigner in Brazil, we believe we’ve been able to equip you with the basic information needed to make a great choice and get the best deals on Brazil Home loans.