Significant changes are taking place in the economic scenario and, consequently, new opportunities arose during the Covid-19 pandemic. One of them is the portability of real estate financing, regulated by the Central Bank of Brazil (BACEN), which enables more favorable conditions for the payment of debts.
In this post, we will explain what financing portability is and how it works. In addition, we will point out details about the conditions, costs, simulation, possibility of negative debt transfer, transition time, among others. Check out!
What is this portability?
Portability is a mechanism that allows customers to change their banking institution to settle their debts. The transaction is permitted in various market segments when they are involved in approving asset financing or securities lending. Debt can be migrated from one financial company to another, which is a consumer right.
How does financing portability work?
The portability service involves two financial institutions and the debtor. When transferring the debt from one bank to another, the bank that will receive the debt will have to pay the full amount of the debt to the original creditor. From that moment, the financing or loan is closed at the institution that carried out the first transactions and the amount is paid to the second creditor.
What are the conditions to do?
Banks typically offer lower interest rates and facilitate debt repayment terms to attract new customers. It is worth noting that the Tax on Financial Operations (IOF) does not apply to this transaction. Another interesting point is that most banks allow the use of FGTS in financing.
Are there any charges involved in the process?
According to BACEN Resolution No. 3,401 / 2006, the customer cannot be charged by banks for carrying out the loan and financing portability process. The transaction is free of charge for any modality, regardless of whether the debt relates to real estate credit or cash. Pay attention to the clauses of the contract so that there is no charge.
How to simulate financing portability?
Most financial institutions offer the option of simulating credit portability on their websites. The tools are very easy to use because they are intuitive. Some even collect information from various banks and select the most advantageous alternative for the consumer. The personal data requested by the system are the total amount, the balance due, the terms etc.
How long does the transition take?
In general, the procedures are carried out in just 2 days, used to request documents related to the debit, sending data from one bank to the other and signing the new contract. However, the original financial institution may submit a counter offer within 5 days to remain in debt.
What if portability is denied?
Institutions providing financing and different loans are required to allow portability of debts. If denied, consumers can activate the Consumer Protection and Defense Program (PROCON) and make a complaint.
Did you understand how financing portability works? Do a search at the financial institutions in your region to find out which one offers the lowest interest rates and the other conditions offered. The current moment is ripe for finding very attractive options, so it is worth investing a little of your time to find out.