Did you know that buying a house doesn't mean spending all your savings? Use a credit intermediary.
The process of buying a house with a housing loan is costly, but you don't need to spend all your savings. The more informed you are, the less risk you run of losing money in this process. That's why many Portuguese people turn to a credit intermediary to guide them through the contract. Find out how credit intermediation can help you in this article.
Do you already know the advantages of using a credit intermediary and want to proceed with the request for help with your mortgage? Contact Savings in a Minute, do not waste any more time. If you are still in doubt... have certainty by continuing to read the article.
Are you buying a house? You don't need to spend all your savings.
Know the capital that needs to be available.
If you are going to buy a house, be prepared to have available a certain amount of capital that may or may not be high.
When buying a property through a housing loan, you always have to give a down payment to the bank since it does not finance 100% of the property value. Currently, banks lend up to 90% of the value for primary and permanent housing and up to 80% for secondary housing.
This percentage applies to the acquisition or evaluation value, whichever is lower. Note that you may have to give more than the 10% (LTV) or 20% (HS), as these are just the minimum limits. It will depend on the profile and financial capacity of the customer, but mainly on the bank.
This means that, for example, if the property you are going to purchase for HPP has an acquisition value of 190,000 euros and an appraisal value of 200,000 euros, the bank proposes to finance 90% of the value, you need to have available capital of 19,000 euros to provide to the bank as a down payment.
But it is important to always ask for more than one proposal. Ask for credit simulations from various banks to have a comparison term and to obtain the maximum financing and the best conditions.
Additionally, you will still have to pay two taxes on the deed: Stamp Duty (IS) and Property Transfer Tax (IMT). IS is the oldest in the Portuguese tax system and represents 0.8% of the property acquisition value. This means that on a property of 190,000 euros, you pay an IS of 1,520 euros.
IMT is more complex to calculate as it is based on various factors such as the rate to be applied, from 1% to 8% (differs according to the property value), the location of the house, and its purpose, and applies to the highest value between the acquisition value and the Tax Patrimonial Value (VPT). But you should know that you may be exempt from paying IMT in certain cases, such as when the property for main residence does not exceed a value of 97,064 euros on the Continent, or 121,064 euros in Madeira or the Azores.
And it doesn't stop there... you also need to pay bank processing costs, such as bank commissions and a mutual mortgage registration.
But with a credit intermediary helping you in communication and negotiation with banks, the process can become simpler and less costly (in bureaucratic and financial terms). Let's see how.
Negotiating is easier with the help of a credit intermediary.
How does credit intermediation work?
The credit intermediation occurs between clients and companies that grant credits, in order to bridge the gap between them.
So, credit intermediaries are responsible for presenting credit proposals from banks to clients, assisting in the bureaucratic part of the necessary documentation to be submitted to banks for credit , accompanying and advising clients until the day of the deed.
Because they have experience in the field, credit intermediaries have good knowledge of partner banks and market trends, which is a plus for a client. This is because they become a kind of guide, which you can rely on for credit-related decisions.
The credit intermediary can help negotiate
Reinforcing: Credit intermediaries, being experienced in the market, prevent you from being deceived and ensure that you have access to all necessary information.
In negotiation, they achieve clear communication with banks in order to obtain the most favorable credit conditions for themselves and their family.
With the help of a credit intermediary, you can request proposals from several banks and understand which one is most suitable. Even if you are not satisfied with any proposal, the agent can negotiate the conditions with the banks.
In this way, it is easier to achieve conditions such as maximum financing in credit, required insurances (life and multi-risk) cheaper, or a lower spread.
Take advantage of the knowledge and experience of credit intermediaries: Use Poupança no Minuto to hire your new mortgage! With a free, fast, and efficient service, they ensure you don't have to worry about anything and still get the best conditions.