Loan Portability

Regulated by Brazil’s Central Bank (CMN Resolution 4,292/2013), loan portability lets a borrower move the outstanding balance of a mortgage to another bank offering a lower rate, without paying an early-settlement fee to the original bank. The receiving bank must present an offer within 5 business days, and the original bank has the right to match it with a counteroffer.

The real benefit depends on the spread between the current and new rate, the remaining balance, and the remaining term. For balances above R$200,000 with more than 10 years left, the savings tend to be significant when the rate difference exceeds 0.5 percentage points per year.