For those looking to acquire a high-value asset, there are some credit options that can be good ways to get there faster. So, among the most common forms among Brazilians is financing. But do you know if financing is worth it?

That's exactly what we're going to talk about in this post! So, worry no more if you still don't quite understand how financing works. In short, we have gathered in this article everything you will need about it, its main features, positives and negatives. 

So, if you are one of the people in Brazil looking for a property of your own and you are unable to pay in cash, financing is worthwhile for you. But if you have doubts and fears, we will help you overcome!

Just follow with us all the information you need about financing, with some good tips in our article.

Thus, at the end of your reading you will already have a better idea if financing is worthwhile. So, just stay with us and check out everything we have prepared for you.

Let's go?

Because financing is basically a type of long-term loan that the bank or financial institution of your choice can provide you with. But this loan agreement will have the specific objective of acquiring a property of your own.

Therefore, you can buy what you need now and start enjoying it. But the payment will be made to the bank or financial institution of your choice, gradually and over a period of time.

However, there are only a few types of goods that are eligible for financing, and they are:

However, there are several types of financing. So, this rule can vary, and your financing can be to acquire other types of things, like some services.

We know that it is very important to know the advantages of financing a property before anything else. So let's go!

One of the great advantages of financing is that it allows you to withdraw the asset immediately. So, if you are deciding between Consortium or Financing this is a main point to consider.

So, if you need a property to live in immediately, or a car to use at the moment, financing guarantees you that. That is, you can enjoy the high-value good that the creditor has already paid off, while paying the installments of your financing. 

But remember that, although you can enjoy the good immediately, it is still in the name of the creditor financial institution. So, only at the end of your financing payment will you be able to transfer the property or car to your name officially.

However, in addition to all this information, we know that it is very important to know the rates.

So, read on and check out what information we've gathered for you, below!

To find out if a loan is worth it, it's no use just thinking about the interest rate. Because the rate can be presented in different ways depending on the type of financing contract you make with the financial institution in question.

So, your rate can be calculated using two methodologies. But for you to think carefully before applying for a consortium or financing, it is essential that you understand well what these methodologies are: the SAC Table and the Price Table. Check it out below:

But, pay attention! Because financing fees may include other fees and charges, such as:

A loan is worth it when you think about the fact that this loan has a purpose that is for your personal and immediate use. That is, by financing your property you guarantee that you will have your own home now, even without the conditions to buy it in cash at the moment.

So, a loan fits into a category of a kind of investment in yourself, in your goals and in your future, doesn't it?

Because financing is worth it because it is one of the safest means of buying a property. This way, you get good conditions with financial institutions, and you also have a series of guarantees and insurance for your high-value asset.

Another good advantage is the possibility of settling the amount of your financing in advance. So, if you get a good reserve or new sources of income, you can anticipate installments or even the full amount of the loan.

Because that way you receive a discount on payment, making the total amount paid much lower than the original contract. So good financial planning and a cash reserve can make all the difference in your financing.

So, how about understanding whether the financing is worth it, even before simulating or requesting any loan from financial institutions or banks? 

Because to be able to sign a financing agreement, you will need to meet the following requirements, which may be disadvantageous for some people. So check it out:

Because all types of financing represent a debt that you must pay to a financial institution within a certain period. And all these installments to be paid involve interest rates and other conditions that will be in the contract.

Also, as this is a long-term debt, you need to be aware that it is something that will take time to settle. And the installments must be paid throughout different phases of your life, in which you may end up losing your job or other unforeseen occurrences that alter your financial stability.

And remember, by delaying financing installments, interest rates increase. Also note that the longer the term to pay off your debt, and the more installments you have to pay, the greater the final amount of your debt with the financial institution.

And this final value can be much higher than the original value for the acquisition of the good, even being twice as much! Therefore, be aware of all these issues before applying for financing with a bank or financial institution.

In general, financing is worthwhile when you have the objective of acquiring a property or land of your own, but you are unable to buy it yourself and in cash. And you can use financing to buy a property, both new and used, in addition to lots or even to complete a renovation.

Furthermore, real estate financing is among the most popular types of financing in Brazil! Even more so because it has a very long term for the customer to pay off his debt. Thus, in general, most Brazilian real estate financing takes place through Caixa Econômica Federal.

Because Caixa has a series of incentive programs focused on the lower-income population, thinking of making it easier for everyone to acquire their own property. In this way, financing is worthwhile for those who would not be able to buy in cash,

However, real estate financing can also occur directly with real estate builders. Because this is an option in which the financing is worthwhile, especially for those who want to use the FGTS money to pay off the financing. 

Oh! And don't forget to also check what the maximum value of the property is. Because to say if a loan is worth it, this amount can make all the difference. Thus, your installments must not exceed 30% of your monthly income, and the value of the property will influence this.

And so we're coming to the end of our exclusive article on finance. But, after all, is financing worth it? Well, it all depends on what your ultimate goal is and your current financial situation.

Because financing in general is a better option for those who need a high-value asset for immediate use, such as a property to live in, but cannot afford the cash value.

That is, financing is worthwhile when you have the goal of owning your own home, for example. Thus, he manages to move immediately, even without paying off all his debt. Therefore, you will enjoy the property while paying off the loan installments with the financial institution.

So, do a good research among all the options of different financial institutions. That is, simulate online and pay attention to all the conditions and fees present in the contract, before signing anything.

Because, remember, a loan is generally a very high debt and it will take a long time to pay it off. It can reach up to 30 years! So it's not a decision you should make on impulse, okay?

So, remember to check what the Total Effective Cost of your financing agreement is, in addition to interest rates and what is the method for paying the installments – Table SAC or Price. Because all of this will make all the difference when it comes to knowing whether a loan is worth it.

Until later!