How does mortgage financing work?

In short: With mortgage financing, the bank pays for the property on your behalf, and you repay it in monthly installments over as long as 35 years. The bank holds the property as collateral until the loan is fully paid off. In Brazil, most financing falls under the SFH (Housing Finance System) — which allows the use of FGTS and has regulated rates.

SFH or SFI: which applies to you

There are two main mortgage financing systems in Brazil:

• SFH (Sistema Financeiro da Habitação — Housing Finance System): for properties up to R$2,250,000 (the new cap as of 2026). Allows the use of FGTS. Rates start at 10.26% per year plus the TR reference rate at Caixa. This covers the vast majority of residential transactions.
• SFI (Sistema de Financiamento Imobiliário — Real Estate Financing System): for properties above the SFH cap. No FGTS allowed. Market rates — which can reach 14.5% per year. More common for high-end properties.

Financing steps

1. Pre-approval: the buyer submits income documentation to the bank. The bank calculates the available credit and indicates the maximum amount that can be financed.
2. Choosing the property: with pre-approved credit in hand, the buyer knows exactly which price range to shop in.
3. Offer and contract: property chosen → offer accepted by the seller → purchase and sale agreement (contrato de promessa de compra e venda).
4. Bank appraisal of the property: a bank-accredited engineer visits the property and assigns a market value. This value may differ from the agreed price.
5. Credit review: the bank verifies income, credit history (SPC/Serasa), and debt-to-income ratio (cap: 30% of income for the payments).
6. Approval and credit letter: the bank issues formal approval with the amount, rate, and term.
7. Signing the financing agreement: the contract is registered at the notary office (cartório) — from this point, the property is pledged to the bank as collateral (alienação fiduciária).
8. Deed and registration: once financing is formalized, the deed is drawn up and registered at the Real Estate Registry Office (CRI) — ownership officially passes to the buyer.

Interest rates in 2026

SFH rates vary by bank and client profile:

• Caixa Econômica Federal: starting at 10.26% per year plus TR (March 2026: 11.19% per year)
• Itaú: ~11.60% per year plus TR
• Bradesco: ~11.70% per year plus TR

Your actual rate depends on your relationship with the bank (checking account, life insurance, direct deposit of salary). It’s worth running simulations with at least two banks before closing.

Regente’s role in financing

When you buy a property through Regente, the Sales Manager oversees the entire banking process — from the credit review through the deed. The seller is also kept informed at every step. You don’t navigate the process alone.

Practical example from Florianópolis

A buyer in Itacorubi, property priced at R$550,000, income of R$12,000. Down payment of R$110,000 (20%). Financing of R$440,000 through SFH (Caixa, 11.50% per year plus TR, 360 months, SAC). Initial payment: ~R$4,700. Pre-approval within 3 business days. Bank appraisal in week 2. Approval in week 3. Deed signed in week 6 after the offer.

Related questions

• What’s the minimum down payment to finance a property?
• SAC or Price: which amortization system should I choose?
• Can I use my FGTS balance toward mortgage financing?
• Minha Casa Minha Vida 2026: income brackets and how it works

Want to simulate your financing with Regente? Talk to our Sales Manager.