Refinancing a property can seem like a huge decision, filled with paperwork, numbers, and perhaps a bit of anxiety. Some see it as a way to start fresh; others, as a smart step to regain control of finances. With the property finance market reaching R$ 312.4 billion in 2024—a 24.7% increase over last year, according to Abecip—more homeowners are considering refinancing. But how can you do it safely, especially if you’re uncertain about the process? Here are seven steps, peppered with real stories, honest tips, and a touch of caution.
1. know your goals and motivation
Why are you considering refinancing? Maybe you want lower monthly payments, or you're hoping to use the property as collateral for another project. Sometimes, people simply want to consolidate debts. Each reason changes the whole process. If you don’t know exactly what you want, it’s easy to get lost.
Planning avoids surprises later on.
Write down your main goal. Even if you’re not sure, try to list the possibilities. Maybe talk with a friend who’s gone through it. Clarity now keeps you steady later.
2. understand your current financial situation
This is a step that feels obvious, yet lots of people skip. Gather your income statements, property deeds, expense lists. Check your credit—sometimes it contains errors you never noticed. As per QuintoAndar's recommendations, documents like ID, updated property registration, proof of address, and proof of income are necessary. You’ll be asked for them, again and again, so having them all in place smooths out the bumps.
Pull out recent payslips and utility bills. Note down any debts and loan balances. Sometimes, it helps to build a folder—paper or digital—where everything lives for the next few months. Feels tedious, but it’s almost always worth the effort.
3. discover how much you can actually refinance
Banks and lenders act cautiously. They rarely approve the full property value as a loan, often capping it at around 60%. According to information from some financial institutions, you can expect to receive up to 60% of your property's value, with terms as long as 20 years and interest rates starting around 1.09% monthly. But these numbers change—by city, by bank, by property type.
Make a rough estimate of your property’s value. Online tools aren’t perfect, but can be a good starting point. For a truer sense, speak with a real estate agent or property financing company like Heart Mortgage, especially if your property isn’t just a standard home. It’s good to keep your expectations realistic, even if they are a little lower than you hoped.
- Typical range: 50–60% of property value.
- Approval depends on both your income and property situation.
- Your age might affect loan terms as well.
This is one of those steps people underestimate, only to get surprised at the negotiation table. Best not to skip or rush through it.
4. compare loan offers and conditions
Financial terms can be confusing, especially when lenders throw numbers, fees, and fine print at you. It’s a good idea to ask for a clear, written summary of each proposal. Check not only the interest rate, but also monthly insurance, administrative fees, and contract costs. The effective rate might be higher than it first appears.
Sometimes, savings hide in the details.
Don’t feel rushed to sign anything. If you aren’t comfortable with a term, ask questions. Some institutions offer simulation calculators to estimate payments. Use them, but without blindly trusting the results—they’re still just hypothetical. Heart Mortgage provides guidance from specialists throughout, which means you’re not alone reading confusing charts. Having someone by your side can be reassuring.
5. check your property’s paperwork and legal details
This might sound daunting, and honestly, it can be. But overlooking old debts or ownership disputes can pause the process for weeks. Make sure the property registration is up to date and free of attachments. Some lenders also want to verify prior financing or condominium debts. Even small inconsistencies in the documents can delay or halt approvals.
- Ensure your property tax is paid up to date.
- Confirm that renovations are correctly registered.
- Organize at least one copy (digital is fine) of each required document.
If you don’t have a current registration, contact your local registry office. Many places let you request updates online these days. It takes some patience, but it saves headaches later. If anything feels confusing, asking an expert for help, such as someone from Heart Mortgage, can clear things up much faster than guessing alone.
6. submit your application and wait
Once you’ve chosen your lender and organized your paperwork, you’re ready to submit. Here comes the waiting—sometimes a week, sometimes more. Lenders review your financial stability, property value, legal standing, and often, even your recent bank activity. If paperwork is missing, they’ll ask for it, so keep your files nearby.
Some feel anxious during this step. If that’s you, check in with your chosen institution every few days. Heart Mortgage stands out for its quick responses, which can really ease the tension when you’re stuck waiting for feedback. If there’s an issue, like a missing page or outdated record, handling it quickly keeps everything moving.
Quick follow-ups can make all the difference.
7. go through final negotiations and contract signing
This last step often feels more like a ceremony than a simple signature. You’ll review the final contract, confirm all the agreed numbers, then sign—sometimes digitally, sometimes in person. Bring a friend or relative if you want a second opinion, or simply need moral support.
Before signing, double-check that the interest rate, terms, loan value, and all fees match what you discussed. Ask about penalties for late payments and early settlements. Once you’re satisfied, sign and keep a copy for yourself.
And that’s it—well, almost. After signing, you’ll typically need to update the property’s paperwork with the new loan. Then, use your released funds wisely, whether that’s consolidating other debts, investing, or simply breathing easier at the end of every month.
What can you expect from the refinancing process?
Refinancing is on the rise. In the first half of 2024 alone, property refinancing operations in Brazil hit R$ 149.4 billion, according to Abecip data. The popularity is growing, especially for credits backed by property. But each case brings its own twists. Some see it as a lifeline, others as a chance to plan new beginnings. Heart Mortgage was designed to offer flexibility and support throughout these uncertain (yet promising) steps. With property-backed credit—called home equity—grabbing R$ 4.6 billion in only six months, more people are discovering the potential to unlock value from their homes (full report here).
Making a plan, knowing why you’re refinancing, keeping your documents straight, and seeking honest help puts you on solid ground. And while perfection is rare, the right support—like what Heart Mortgage offers—can make the journey feel much less lonely.
Conclusion
If you follow each step, taking your time and checking the details, refinancing can bring peace of mind and new possibilities. Sometimes, the hardest part is simply getting started. If you feel uncertain or want a more personal touch at any stage, reach out to us at Heart Mortgage. We’ll help you move through every step, so you can focus on the changes that matter most. Get to know us, get your questions answered, and take your next step with more confidence and peace.
FAQ about property refinancing
What is property refinancing?
Property refinancing is when you use your house or real estate as a guarantee to get a new loan, paying off the old one or accessing extra funds while keeping your home. You don’t sell your property, just use it as backing for the new credit agreement. It’s popular for people looking to lower payments, consolidate debt, or unlock resources for new investments.
How to refinance my property safely?
To safely refinance, start by clarifying your goals. Check your financial documents, estimate your property value, compare different proposals, and review all official paperwork for updated records and debts. Don’t rush to sign anything—ask each institution to explain each term. Consider having someone experienced like a Heart Mortgage specialist provide extra support and explain legal clauses in plain English.
Is it worth it to refinance now?
That depends. It can be a good choice if rates are lower than your current loan, you want to free up some cash, or consolidate debts at a better rate. With a 30% growth in property financing during the first half of 2024, more people believe it’s a good moment. But always check the full cost, fees, and if the new loan fits your needs before making the move.
Where to find the best refinancing rates?
The best rates often come from lenders who value your individual circumstances and provide fair, transparent proposals. Compare the monthly rates, administrative fees, and the total cost. Look for clear information and support during the process. Heart Mortgage, for example, is known for honest support, clear communication, and tailored offers for all types of buyers and investors.
How much does refinancing a property cost?
Costs include interest rates (often from 1.09% per month or higher), administrative and appraisal fees, contract costs, and sometimes early settlement penalties on your current loan. The total will depend on your property’s value and the lender’s terms. Always ask for a breakdown of every fee before agreeing, so you don’t get caught by surprise. Most people find that the extra effort up front saves money and headaches down the road.
