How can I lower the installment of my home loan credit?

Are you having trouble paying your mortgage credit? Use the credit intermediaries available through Poupança no Minuto to understand the available solutions. Then, read about the options you have to lower the installment.

How to lower the installment of my home credit?  

Renegotiate the credit terms 

The first step to take when you want (and need) to lower your home loan installment is to go to your current bank to express your dissatisfaction and inability to pay the loan with the current conditions.

The bank can review the conditions and suggest new options, as a way of renegotiating the contract, that may allow for some relief in the monthly payment.

For example, the bank may propose to lower the credit spread if you contract other associated products such as a credit card, or propose to extend the loan term (if it is not already at the maximum limit), with the possibility of reverting to the previous one.

Note that the bank is also required, currently, to renegotiate certain housing credit contracts. This is an exceptional measure by the Government, applied to credit contracts for the purchase of permanent own housing with variable interest and a debt of up to 300 thousand euros, when the effort rate is equal or higher.

• 50% off
• A consequent 36% increase due to a 3% rise in the associated interest rate;
• A 36% increase resulting from a 5% increase in effort rate during the last year.

Advance with a credit transfer  

This is an option that has been highly sought after by customers, as it allows access to different (and often better) conditions. If the bank where you have your mortgage cannot offer you more favorable or compensatory conditions, ask for proposals from other banks.

According to your context and preferences, you can get a more enticing offer for your credit at another institution.

From the different proposals, you must analyze and compare them to understand if it is worth it compared to what you currently have.

Through the housing credit transfer, you can access:

• Reduction of the spread, and the Nominal Annual Rate (TAN).
• Extension of contract deadline;
• Change of interest rate type (for example, from a variable rate that is increasing due to Euribor, to a fixed rate without benchmark);
• Transfer or reduction of the premiums required for insurance policies.
• A possible increase in the market value of the house, with a new evaluation.

By advancing with a proposal from another bank to transfer the credit, know that you must inform the current bank 10 days in advance that you will be doing so. Also considering that the bank also has 10 days to share the data and documents related to the credit with the bank to which the financing will be transferred.

Do you have more credits? Make a consolidation.

If, besides the mortgage loan, you have other contracted credits such as consumer loans, or credit cards, you can consolidate them all into one. For example, having a mortgage, plus a car loan and a credit card, it is possible to take out a consolidated credit that groups all three together.  

In this way, you start paying a single installment for multiple credits that may be of lower value, since the interest rates are more attractive, and the loan term can be significantly extended. However, by stretching the term, you end up paying more interest on the credits in the future.

So, it is a product that allows for greater savings in the short term, but that can represent a greater burden in the long term.  

Therefore, if you need to immediately lower your home loan installment, these are some of the options available to you.

Do you want to move forward or learn more? Contact Poupança no Minuto for a free and personalized credit mediation service, and ensure some extra room in the family's monthly budget. Make your simulation now and discover how much you can save!