Young mortgage credit 100% financed: How to submit the CPCV?
The benefit of the public guarantee put in place by the State for young people up to 35 years old allows 100% financing for the house without having to finance any down payment. But what happens to the deposit that must be paid in the CPCV before the deed? Learn about the options below.
How to finance the CPCV signal without savings, in 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 ensures the remaining percentage that is not covered by banks in housing loans for the acquisition of a property, up to 15%.
That is, young people who meet all the access requirements for this measure may have access to bank financing (between 80% and 90% of the property value), and to public guarantee financing the remaining value.
Therefore, it can be applied 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 deposit value in the Purchase and Sale Promise 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, as a rule, requires the payment of a deposit (the down payment) to the seller. But what does one do who does 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% deposit). However, this is a rare option to happen, as it is more difficult for sellers to accept these cases, since payment allows for greater security and commitment in how the business will progress.
2nd option
The seller agrees for 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 both. In this case, the bank still finances 100% and the buyer receives the down payment amount back.
For example:
- Acquisition value: 100,000€
- Signal: 2,000€
- Bank financing: €100,000
The buyer hands over the 2,000€ deposit when signing the CPCV and, at the time of the deed, still needs to hand over 98,000€. The bank transfers 100,000€ to the buyer and, at the time of the deed, only transfers 98,000€ to the seller. The credit remains at 100,000€ and the buyer recovers the 2,000€ initially handed over.
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 up to 10% of the purchase price, the customer takes the CPCV to the bank in question for financing the down payment value and this is delivered to the seller, and, at the deed of sale, transfers the remaining amount. However, this situation requires that the CPCV and the transfer of the down payment be made with all parties present at the bank, which can complicate the logistics.
Read more: How to save up for the down payment on your first home?
If you are looking to buy a house financed through this measure, save yourself from all this process: Credit intermediaries from Poupança no Minuto make it easy and take care of everything for you until the deed, without costs, to ensure that you access this benefit without worrying about anything.
Get in touch with the agents now and start your process today!