Generally, to start a big project, either for personal life or for your business, you need to do extra credit. This way, secured home loans can be a good solution for these cases.
Although little used by Brazilians in general, this type of loan can guarantee several advantages for those looking for the best credit option.
Interested? So check out this article on how secured home loans work as well as what their pros and cons are.
How Do Home Secured Loans Work?
This type of loan is intended to provide credit to a person using their own property as collateral for the transaction. Typically, this type of resource is used to carry out large projects, investments that require more resources.
To get the loan, you must have a property of your own, which can be residential or commercial. Some credit institutions also accept real estate on behalf of third parties as collateral, provided that the owner signs in agreement. It will be previously checked by the credit issuing company, without having to vacate it.
In addition to owning the property, the client needs to submit a series of documents to advance the analysis procedures.
- ID and CPF;
- property registration;
- proof of marital status, residence and income.
Your payment is a very attractive factor, it can be at least one year and reach up to incredible 20 years, depending on the institution chosen. Thus, thanks to the security and comfort provided, interest rates are generally among the lowest in the market.
What are the advantages and disadvantages of this type of loan?
Before making the decision to borrow such a loan, it is important to be aware of all the pros and cons of this service. After all, despite the benefits, the policyholder must be confident that his financial condition can meet the deadline.
This type of secured home loan is a type of personal loan and therefore you do not need to prove the final destination of the money. In addition, it has attractive interest rates, which average 1.15%, varying according to term and type of collateral. Usually the amount that is delivered is up to 50% of the total of the property placed under guarantee. Residential and commercial warranties are accepted, whether or not endorsed and land is also accepted as collateral for the operation.
To have access to this line of credit you must have your property free of charge, ie only real estate without alienation or mortgage is accepted. Another limiting factor is the minimum amount for a secured home loan, which is 50,000. Some institutions also define that the city where the property is registered must have a minimum of 50 thousand inhabitants.
In which case should I opt for this loan?
In addition to the possibility of acquiring real estate with access to the best interest rates and extended terms, this type of loan can be an excellent alternative for those with short term debt and higher interest. In the case of refinancing the loan money to pay off previous debts while borrowing a single one is a widely used condition.
The user must rely on long-term financial planning to use real estate disposal as a viable tool. This will give you a chance to fund large projects such as travel, start a new business or college for your children, more safely at lower rates.
Not always adhering to secured loans points to lack of monetary control, it can mean growth! With a good financial control you can realize your dreams and avoid many mistakes when buying resources for a property.
Want to know more about it? So get in touch with Finance Everything and find out how a secured loan can help you get your projects done!
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