Financing Básico

SFH (Housing Finance System)

The SFH (Sistema Financeiro da Habitação) is Brazil's main housing credit system, regulated by Law 4,380/1964. It sets a financing cap (currently R$1.5 million), limits the interest rate to 12% per year plus the TR or IPCA index (in practice…

Explanation

The SFH (Sistema Financeiro da Habitação) is Brazil’s main housing credit system, regulated by Law 4,380/1964. It sets a financing cap (currently R$1.5 million), limits the interest rate to 12% per year plus the TR or IPCA index (in practice market rates run below this cap), and allows the use of FGTS severance fund balances for both the down payment and amortization.

A property financed under the SFH must be residential, new or used, and the borrower cannot already have another SFH-financed property in the same municipality or within a 70 km radius. Above the SFH cap, financing shifts to the SFI (Real Estate Financing System), under free-market conditions.

Guides that explain SFH (Housing Finance System)

FGTS for Those Living Abroad: When You Can Withdraw, Birthday Withdrawal and How to Use as a Down Payment

Outros terms

Financing
Básico

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…
Financing
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SAC (Constant Amortization System)

Under the SAC (Constant Amortization System), the principal amortization is fixed across every installment. Since interest is charged on the outstanding balance (which shrinks month…
Financing
Básico

Price Table (Price System)

Under the Price Table (Tabela Price) system, installments are constant — the same amount throughout the contract, assuming a fixed rate. This makes budgeting easier…