Is mortgage credit transfer free?
With the rise in interest rates, it is more difficult to pay the monthly installments of housing loans. Therefore, it is important to look for savings solutions in credit, such as transferring it. Find out how this process works, and if it has costs.
How does the home loan transfer work?
The first step in carrying out a housing credit transfer is to communicate to your bank that you are dissatisfied with the current contract conditions. The bank may suggest renegotiating and offer you a new proposal, giving a bonus on the spread if you contract new products, such as a credit card, for example.
On par with negotiating with the current bank, to understand if it is possible to have better conditions in another bank, you can request proposals from other banking institutions based on your property and outstanding capital.
From there, you can compare the proposals you have on the table: from your bank and competitors. If you have a proposal from a different bank that makes more sense to you, where you can achieve a greater monthly savings, consider transferring your home loan.
Does transferring a home loan make sense?
With a mortgage credit transfer, it may be possible to have a lower spread and change the interest rate regime, which, in general, can reduce the total loan amount. But to have a lower spread, for example, you may be subject to other conditions, such as direct debit of salary, contracting a credit card, and subscribing to the required insurances in the insurer associated with the bank. However, depending on the insurer in question and the conditions of the new insurances, you may be able to significantly reduce the amount you paid for them, and consequently, the monthly loan installment.
Currently, it may also be worth making a credit transfer if you have a variable interest rate on your credit, indexed to the Euribor. This is because the fixed or even mixed interest rate regime is currently lower than the variable. However, once interest rates start to fall again, this situation will reverse.
One must note that, depending on the bank where you have the mortgage contracted and the bank you are considering transferring to, there may be costs associated with the process. Let's see what they are.
Is the housing credit transfer free?
As a rule, the costs of transferring a mortgage credit are covered by the bank, and not by the client themselves.
However, there are banks that pass on certain costs to the customer, so this process is not 100% free in all entities.
So, specific costs always depend on the bank and the mortgage contract.
What costs can it have?
You should take into account that some banks have associated costs with the credit transfer process, such as:
- Early repayment commission (maximum of 0.5% of the repaid capital if the interest rate is variable, and a limit of 2% of the repaid capital in the case of a fixed interest rate).
- Cost of a new deed;
- Commissions related to the opening of the process;
- And cost with a new property evaluation.
The value of these costs is variable, it might be high. Therefore, one must pay attention to the banks' campaigns for housing credit transfers without costs, partially or fully.
Therefore, in order to understand if it is worth transferring your home loan, it is important to do the math on the monthly amount you will save, compared to the costs you may incur with the process.
If you need to know more information, especially about your specific case, you can turn to a credit intermediary like those from Poupança no Minuto. Through a personalized and free service, they assist you throughout the process, from comparing proposals from various banks to making the most suitable and rewarding final decision for your family.
💸 Do a free simulation now and find out how much you can save with a credit transfer!