Is the housing credit transfer free?

Is the housing credit transfer free?

With the rise in interest rates, the difficulty in paying the monthly installments of the home loan is greater. 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.

11 Aug 20234 min

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How does the housing credit transfer work?

The first step to make a mortgage credit transfer is to communicate to your bank that you are unsatisfied with the current conditions of the contract. The bank may suggest renegotiation and offer you a new proposal, providing a bonus on the spread if you hire new products, such as a credit card, for example.

On par with negotiating with the current bank, to understand if it's possible to have better conditions in another bank, you can request proposals from other financial institutions based on your property and outstanding capital.

From there, you can compare the proposals you have on the table: from your bank and from competitors. If you have a proposal from a different bank that makes more sense for you, where you can achieve a higher monthly savings, consider transferring your housing credit.

Is transferring housing credit worth it?

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. However, to have a lower spread, for example, you may be subject to other conditions, such as salary direct deposit, hiring a credit card, and subscribing to the required insurance from the bank's associated insurer. However, depending on the insurer in question and the conditions of the new insurance policies, you may be able to significantly reduce the amount you were paying for them, and consequently, the monthly loan installment.

Currently, it may also be worth doing a credit transfer if you have a variable interest rate on your credit, indexed to Euribor. This is because the fixed or even mixed interest rate regime is lower than the variable one. However, as soon as interest rates drop again, this situation will revert.

You should note that, depending on the bank where you have your mortgage contracted and the bank you are considering transferring to, there may be costs associated with the process. Let's see which.

Is the housing credit transfer free?

As a rule, the costs of transferring a mortgage credit are covered by the bank, not by the customer.

However, there are banks that pass on certain costs to the customer, so this process is not 100% free in all institutions.

So, specific costs always depend on the bank and the mortgage contract.

What are the costs that can be?

You must take into account that some banks have associated costs with the credit transfer process, such as:

  • Early refund commission (maximum of 0.5% of the refunded capital if the interest rate is variable, and limit of 2% of the refunded capital in the case of a fixed interest rate);
  • Cost with a new deed;
  • Commissions related to the opening process;
  • And cost with a new assessment of the property.

The value of these costs is variable, and may or may not be high. Therefore, one should be attentive to bank campaigns for housing credit transfers without costs, partially or completely.

Therefore, 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 at Poupança no Minuto. Through a personalized and free service, they accompany you throughout the process, from comparing proposals from various banks, to making the most appropriate and rewarding final decision for your family.

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