Father's Day: How does the hiring of a mortgage loan with a relative work?

Can I hire a housing credit with my father? How does it work?

Yes, it is possible to request a housing loan with a parent, either as co-owner or as guarantor. This strategy can be useful when individual income is not enough to meet the bank's requirements.

These are the options for hiring a home loan with a parent.

Co-owner of credit

• The father enters as a co-borrower, assuming the same responsibility in the payment of the debt.

• Both incomes are considered in credit analysis, increasing the ability to pay.

• Both parties are obligated to pay the installments, regardless of who uses the credit.

Guarantor

• The father is not the owner of the credit, but assumes the responsibility to pay the debt if the main holder does not comply with the installments.

• This option is more common in mortgage credit when the applicant's income is not sufficient  

• The guarantor needs to have a positive credit history and a stable financial situation to be accepted by the bank.

Read also: Housing credit: How to stop being a guarantor?

What are the advantages of hiring a credit with a guarantor?  

• Greater ease in credit approval: With combined incomes, the bank sees a lower risk in granting the loan;  

• Possibility to obtain better conditions: Lower interest rates and higher amounts can be negotiated;  

• Financial support and security: For those starting their financial life, having a parent as a co-signer or guarantor can help to obtain better opportunities.

But there should be some precautions when hiring a credit with a parent: being both responsible for the credit, if there are financial difficulties, the debt can affect both. In addition, a delay or default will harm the credit score of both.  

It is essential to evaluate if the decision makes sense for both parties and if the father has the conditions to assume this commitment.

Hiring a home loan with a parent can be an effective solution to obtain better financial conditions and facilitate approval of the financing. However, it is essential to assess the risks and responsibilities associated. Before moving forward, it is advisable to openly discuss the financial situation and consult several banks to clarify all doubts beforehand. Alternatively, you can go directly to the credit intermediaries at Poupança no Minuto who, free of charge, clarify all information, gather proposals from all banks, and help you choose the best conditions!

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