Not everyone can buy a cash on the spot. Therefore, understanding how to calculate interest on real estate financing is essential for those who want to use this modality and, thus, realize that dream.

Those buyers who have invested values ​​also need to consider whether their yields are better or worse than the interest on a possible loan. From there, they can decide to redeem their finances or enter into a  credit agreement.

That is, in order not to fall into a trap and make truly strategic decisions, it is necessary to master the operation of the calculation of real estate financing. That’s what we’re going to talk about here, in this post. Continue reading this article by Sky Marketing to check it out!

How does real estate financing work?

In a conventional purchase, the buyer and seller would exchange a sum of money for the ownership of the property – in this case, the property. However, when the customer does not have the money to pay the full value of the chosen house or apartment, he can use the credit service of a financing entity, the so-called real estate financing.

Banks and lenders, in turn, assess an individual’s ability to pay and financial health and grant credit so that he can pay the seller. In this transaction, the most common is that the amount financed is only part of the total price of the property.

In this case, the buyer pays an entry with his own resources or uses the Guarantee Fund for Time of Service (FGTS), and negotiates the rest with the financier. This is the financing of the property, in which a contract is formalized with the bank, guaranteeing the payment of the loaned amount in monthly installments, and another is concluded with the seller, transferring the ownership of the property to the buyer.

Thus, the property is in the name of the buyer, but the existence of the financing still open prevents the owner from making a new sale without first settling the remaining balance of the contract with the financier.

Calculator on top of calculation documents

The 4 stages of real estate financing

It is possible to divide the financing of property into phases. See what they are.

1. Credit analysis

Here, the income and financial health of the buyer of the property will be checked. If there is security in the analysis, that is, if there is an income compatible with the purchase of the property, it is possible that there will be credit for the acquisition of the real estate unit.

2. Choice of property and technical analysis

Then, it is necessary to choose, among the available properties, which one will be chosen by the buyer, based on criteria that meet their desires as a consumer. At this time, it is also necessary to carry out a technical analysis by the engineering team, with the participation of the buyer, in order to ensure the correct acquisition of the property.

3. Drawing up and signing the contract

After the credit analysis and choice of the property, including a technical evaluation and inspection, the contract is drawn up and signed. This is one of the most important moments, as it will define the terms of the contracts, the duration of the financing, and when it is possible to negotiate lower interest rates, etc.

Any situation of a dispute, doubt or even legal process will be guided by the terms established in the contract and, also, by the current legislation.

4. Record the contract, then hand it over to the bank

The last step is to register the contract with a notary, for the purposes of legal certainty and authenticity of the document, in addition to handing it over to the financial institution or bank. This ends the total financing cycle of the property.

It is also important to highlight that the granting of credit is accompanied by interest payments. In view of this, it is always important to conduct thorough market research to verify which financial institution grants loans with the best interest offer in the long term, with a calculation of consumer-friendly financing, as CrediPronto offers.

Another important piece of information is the acquisition of ownership of the property. While payments of financing installments are made, the good negotiated belongs to the banking institution or the financier. Only after the payment of all installments of the financing, does the transfer of ownership of the bank / financial institution to the buyer of the property occur.

In this context of financing, it is worth noting that the construction work carried out by the construction company itself is also financed by banking institutions. Then, in this case, there is also the financing calculation carried out by the real estate units’ builders themselves, in which there will be a search for financing/interest processes with the best advantages in the financial market.

Professional holding real estate finance calculator

What makes up the value of real estate financing?

This is a point that deserves attention when analyzing the real estate financing contract. After all, some factors can make the installments higher or even cause products and services to be included without the buyer’s consent. In general, the amount to be financed includes:

  • amount to be financed, also called amortization;
  • interest rate, which is the form of remuneration of the financing entity;
  • death and temporary disability insurance;
  • insurance for physical damage to the property;
  • any administrative fees.

In addition, some banks and entities also allow the inclusion of some notary expenses in the financing calculation, but it is worth the research and study on the feasibility.

How to calculate the financing interest?

When a person chooses to acquire a property or other property through financing, it is necessary to learn how to calculate the interest to understand if the rates are attractive and, still, how much the installment will cost. This way, it is easier to organize the finances to pay the debt on time.

Making a calculation using the difference in the price of the payment in installments and in cash, and dividing it by the number of installments, can generate an incorrect result. Even so, in fact, the account is simple. Take an interesting example.

One person decided to make a mortgage loan of R $ 400 thousand, which will be paid 360 times, with interest of 10% per year, and amortization of R $ 1,111.11. Interest must be added to the installment, which corresponds to 10%, and which will be divided into 12 months. So, we have:

  • 10 × 12/100 = 0.0083% per month
  • R $ 400 thousand × 0.0083% = R $ 3,320.00
  • R $ 3,320.00 + R $ 1,111.11 = R $ 4,431.11

To this amount, the insurance and administration fees charged by the finance company can also be added. Next month, in order to obtain the installment amount, it is necessary to deduct the amortized R $ 1,111.11 from the R $ 400 thousand and make the calculation based on the outstanding balance.

If you prefer to use a formula to obtain the values, you can apply the following:

“Financed amount = [{1 – (1+ interest rate) – term} / interest] x installment amount”

However, if doing math is not one of your greatest skills, take advantage of the Citizen Calculator, made available by the Central Bank, on the Internet.

What are the advantages and disadvantages of calculating financing?

When opting for real estate financing, the buyer can anticipate his acquisition, leave the rent and increase his equity in a manageable manner, that is, with payments that fit within his family budget.

In addition, at times when the economy is favorable and the supply of credit is greater, it is possible to take advantage of better interest rates. This is a great advantage for the buyer.

The choice of financing the property allows people to reserve their financial resources for possible unforeseen events or to take advantage of other businesses. The surplus values ​​can be useful to improve the apartment or house purchased.

On the other hand, real estate financing is a way of making safe investments. The acquisition of real estate offers a guaranteed return, through rents or its valuation, which is a common factor in these cases.

People who have the Service Time Guarantee Fund at their disposal can ask Caixa Econômica Federal to release the amounts for the acquisition of their own home. This option is valid for those who do not have another property in their name.

Finally, real estate financing offers some guarantees to contractors. One of them is home insurance, which protects the property against damage caused by natural phenomena.

There are also some disadvantages, such as the commitment of part of the income for an extended period. Several conditions can still bring more challenges to this situation, such as the increase in expenses with the arrival of the children.

In general, all of these issues are manageable. Even the sale of an apartment in the financing period is not impossible. It is enough that your remaining balance is paid off.

The extended term of the contract can also be shortened with the advance of installments, which, in this case, may still have considerable discounts on interest rates, which will provide savings. In this sense, facilitating access to a property that, in the long run, from the payment of small installments, will be your property, is one of the greatest advantages of a financing calculation.

Unlike a rental agreement, in which the money spent does not result in any long-term investment (such as the acquisition of ownership of a property), the financing of the property actually results in a property gain.

A disadvantage that can be pointed out is the long duration of a financing contract, that is, a financing calculation is divided over time and, in general, there are several financial and successive installments that need to be paid off. Thus, it is an obligation that stretches over time, that takes time to end and that needs a real commitment.

How do finance companies calculate the financing of real estate?

When we decide to buy a property, it is natural that the first thing that comes to mind is the interest rate. After all, there are abusive charges, which can compromise the buyer’s pocket. In this case, it is always good to redouble the attention to the conditions offered by the company that is operating the financing.

In addition to the interest issue, the lenders take into account other factors to calculate the value of the financing of a property. Below, we list the main aspects.

Property type

Generally, finance companies place a higher value on financing commercial buildings than residential ones. For example, some companies allow you to finance up to 70% of the value of commercial property – while for homes, 50% is the limit.

Property Value

The amount financed is not the full value of the property. Normally, the company that makes the financing stipulates a total limit on the financed asset. For example, it is common for the buyer of a house under construction to start paying the construction company.

After handing over the keys, he makes a loan with a bank to pay the outstanding balance. In this case, it is the value of the property, since the amount paid to the construction company was related to the down payment.


On average, the finance companies offer a payment term of between 180 and 360 months, equivalent to a period of 15 to 30 years. However, the longer the duration, the more expensive the plan will be. This is because the incidence of interest is higher in long-term loans.

That is why it is so important to carefully analyze the terms established by each real estate financing system before closing the deal. After all, this is a large investment, which has probably been planned by the buyer for a long time.

In order not to take the risk of taking a step higher than the leg, the solution is to put everything on the tip of the pencil. Even though this is laborious and requires patience, studying your budget accurately is the best strategy to find financing that fits exactly in your pocket, avoiding headaches in the future.

Reference rates

There are two fees charged by the lenders: one is the administrative fee – a monthly amount embedded in the installments – and the other is the referential fee – a rate that is updated monthly, and is levied on the outstanding balance. Therefore, both have an impact on the calculation of real estate financing.


Financial companies require the payment of two types of  insurance :

  • Death and Permanent Disability (MIP): it is paid monthly and guarantees that the debt will be settled, even with the death of the borrower;
  • Physical Property Damage (DFI): is calculated based on the value of the property and ensures compensation for claims against the residence.

Credit analysis

Another important factor, which is taken into account when calculating real estate financing, is credit analysis. This step is essential to protect the finance company and the buyer from financing that does not fit in the pocket, compromising family income.

In this verification, it is also discovered if the customer has previous debts. In some cases, such financial pending items are included in the income commitment percentage.

How does CrediPronto calculate real estate financing?

Although some financiers do not make life easier for people who want and need to acquire a property loan, CrediPronto offers several benefits to customers. Let’s look at some of these facilities.


CrediPronto uses the SAC Table – Credit Amortization System -, which gradually decreases the value of the financing installments. With that, it can be up to 10% cheaper. This favors not only the pocket, but also, the future investments of the buyer, because in the SAC Table, the interest will be lower during the contract.

This means that, for buyers who have a reasonable monthly income, this financing system is the most recommended. This is because it will not compromise the investor’s budget for long periods of time. In this way, the level of customer satisfaction will be much higher, since the final cost of the property will be lower.

SAC Table

CrediPronto’s real estate financing is made by Tabela SAC because the company knows that this modality is more advantageous for its customers. That is, even if the buyer tightens the budget a little to pay the first installments of the financing, he will be safe, knowing that the value of the debt will decrease considerably.

In addition, another advantage of the SAC Table is that, if the client needs to renegotiate the financing or, even, change the bank, its financial return will be greater, considering that a good part of the debt balance has already been paid in the course of the installments.

If there are still doubts about the option for constant amortization, we will give an even more practical example on the calculation of real estate financing in this system. Consider financing of R $ 300 thousand.

According to the SAC Table, the buyer would pay approximately R $ 3,800.00 in the first installment and R $ 800.00 in the last installment, 360 months after the beginning of the contract. Is it or is it not much more advantageous?

Property Value

Up to 90% of the value of the property can be financed, and CrediPronto offers the best conditions for the payment of the installments. Without a doubt, this is one of the most important factors in calculating financing. Even because nobody wants to spend the 30 years of the debt term trying to solve problems with the financier, right?

In this sense, the  Itaú Lopes partnership of CrediPronto takes the lead when it comes to easy, agile and practical real estate financing since the company is properly prepared to guide the buyer from the beginning of the process to the final phase of handing over the keys.

Charging fees

The fees charged vary according to the customer’s profile. With this personalized collection, abusive amounts are avoided, which could compromise the buyer’s income and cause problems for their future investments.


CrediPronto is dedicated to carrying out its processes in a practical and uncomplicated way. For this reason, the credit analysis is done in 24 hours, and the average time for issuing the contract is shorter compared to other financial institutions.

This is possible because, instead of using an outsourced platform for analyzing and issuing contracts, like most companies, CrediPronto has its own legal cell. Do the credit simulation now.

What should you analyze to choose the ideal financing?

In the same way that the financial company analyzes your data to ensure that you have the right conditions to be a customer, you also need to assess the economic and market scenario to decide which is the best financing available for your profile.

At this point, it is interesting to think with the head of an entrepreneur. No successful business uses purchases or loans without doing extensive research beforehand. This is what you need to do when buying your house, land or apartment: do a lot of research to make sure you are taking the best possible financial attitude.

Let’s see 4 tips on this topic.

1. Professional stability

How is the news about the company you work for? In some cases, corridor conversations indicate that managers can take important steps, such as cutting jobs.

This type of information must be evaluated as a risk indicator for its financing. Is there a deadline for the company to communicate something to employees? Will a new director take office? If so, it is worth waiting for these changes to occur.

2. Salary variation

This topic is very important for anyone who works as a freelancer or receives commissions. Do not do the calculation of real estate financing considering only your best results.

These gains are directly influenced by issues that are out of your control, such as the good performance of a product in the market or the growth of a particular segment. It is best to run simulations taking into account only the capital you are sure you can count on.

3. Use of simulations

Some people underestimate tools like credit simulators, thinking they are inaccurate. They are not. In the economy, forecasting scenarios is very important. If you have ever watched an economic newsletter, with the minimum of attention, you must have noticed this.

When you have access to data that will show how your family income will be impacted by financing, it will be easier (and safer) to set the correct amount. Conversely, the buyer will be making his decisions only in guesses.

4. Financial reserve

Maintaining a financial reserve is necessary at any time in life. When a person calculates real estate financing, he may realize that it will be necessary to reduce the amount invested in Savings or other investments.

The ideal is to cut expenses, but never fail to save, however small the amount deposited. Emergency expenses, related to health expenses or professional challenges, can be easily circumvented if the individual has, at least, the amount equivalent to six months of his / her monthly expenses applied.

In this case, not only will the financing installments be paid with ease, but the buyer will have the mental clarity to decide his next steps.

Why choose CrediPronto?

CrediPronto is a solid and reliable company, specialized in real estate financing, which offers consultancy to its clients and serves all over Brazil. It has partnerships with large companies, such as Banco Itaú SA, and has the best interest rates on the market, together with all the benefits you want. The service is agile and personalized!

Anyway, now you know how to calculate mortgage interest! As we have seen, calculation in this sense is a very important issue. So research, talk to the people you live with, and avoid making hasty decisions. After all, buying an apartment or a dream home should only bring happiness.

CrediPronto ensures the best real estate financing! Subscribe to our newsletter and discover our excellent content production on the subject! Come with us!