Young housing loan 100% financed: How to sign the CPCV?
The benefit of the public guarantee put in place by the State for young people up to 35 years old allows for 100% financing of the house without having to finance any down payment. But what happens to the deposit that has to be paid in the CPCV, before the deed? Learn about the options next.
How to finance the CPCV deposit without any upfront savings, through the 100% financed young housing credit?
With the new public guarantee measure, which allows young people up to 35 years old to access 100% home financing, some challenges arise.
Remember that this measure guarantees the remaining percentage that is not covered by banks in home mortgage credit for property acquisition, up to 15%.
In other words, young people who meet all the access requirements for this measure can access bank financing (between 80% and 90% of the property value), and public guarantees financing the remaining amount.
Therefore, it may apply to young people who do not have savings to make a down payment in this process. But, in this case, the question arises: How to give the signal value in the Promise Purchase and Sale Contract (CPCV)?
Notice before: CPCV: What is it and what is this contract for?
This contract is signed before the deed of the property and usually requires the payment of a down payment to the seller. But what to do for those who do not have this amount?
There are two options for these cases:
1st option
The seller may accept to reserve the property and sign the CPCV without being given the signal (usually the 10% down payment). However, this is a rare option to happen, as sellers are more unlikely to accept these cases, since the payment provides greater security and commitment on how the deal will progress.
2nd option
The seller accepts the down payment amount to be lower than the usual 10% and the buyer signals the house and signs the CPCV with an agreed value between the two. In this case, the bank finances the 100% and the buyer receives the down payment amount back.
For example:
- Purchase value: €100,000
- Signal: 2,000€
- Bank financing: 100,000€
The buyer delivers the €2,000 deposit when signing the CPCV and, at the deed, still needs to deliver €98,000. The bank transfers the €100,000 to the buyer and, at the deed, only transfers €98,000 to the seller. The credit remains at €100,000 and the buyer recovers the initially delivered €2,000.
There is still an exception currently, in certain banks, which is a down payment credit line. Through this line, both parties sign a CPCV with a down payment value of up to 10% of the purchase price, the customer takes the CPCV to the bank for financing the down payment amount to be delivered to the seller, and at the deed, transfers the remaining amount. However, this situation requires that the CPCV and the down payment transfer be made with all participants present at the bank branch, which can complicate logistics.
Read more: How to save for the down payment on your first home purchase?
If you are looking to buy a house financed through this measure, save yourself from all this process: The credit intermediaries of Poupança no Minuto facilitate and take care of everything for you until the deed, at no cost, to ensure that you access this benefit without worrying about anything.
Get in touch with the agents now and start your process today!