What is Financing?

Financing is when a bank lends you money to buy something of high value (house, car, etc.) and you pay it back in installments over the years. The purchased asset serves as collateral — if you stop paying, the bank can take it.

Common Types

Real Estate Financing

  • Term: up to 35 years
  • Rates: 8% to 12% per year
  • Minimum down payment: 20% of the value
  • Systems: SAC or Price

Vehicle Financing

  • Term: up to 60 months
  • Rates: 1.5% to 3% per month
  • Down payment: the more, the better
  • The car is alienated to the bank

Tips to finance well

  1. Make the largest down payment possible — reduces total interest
  2. Choose the shortest term that fits your budget — less interest
  3. Compare rates between banks — the difference can be huge
  4. Prefer SAC — pays less interest in total
  5. Amortize whenever possible — every extra R$ 1,000 saves thousands

How much does a financing cost

A R$ 400,000 property financed over 30 years at 10% per year costs around R$ 1,000,000 in total. You pay more than double the property’s value in interest.