If you already own a property, it can be used as collateral for new credit. The money can be used to invest in your business, pay off expensive debts or carry out a project.
What this modality is
It is the credit in which you offer a property you already own as collateral for the operation. In exchange for this greater security for the bank, conditions are usually better than an unsecured loan: larger amounts, longer terms and lower rates. The exact conditions are always set by the bank, case by case.
How it works, step by step
Property appraisal: the bank appraises the asset to define how much it can release;
Income and registration analysis: as with any credit, your payment capacity is analyzed;
Fiduciary alienation: the property stays tied to the bank until payoff, but you keep using it normally;
Market terms: up to 20 years at some banks (e.g., Banco Bari reports up to 20 years);
Release: the amount depends on the property appraisal and your income.
When it usually makes sense
Swapping expensive debts (credit card, overdraft) for a smaller installment;
Investing in your business or construction with a more comfortable term;
Carrying out a bigger project without selling the property.
Important caution
Because the property is the collateral, missed payments can lead to losing it. We simulate the commitment of your income before any proposal. Service in Portuguese.
Home equity and mortgage: pay attention to the type of collateral
Home equity is the name used for a loan backed by real estate. The contract must state which legal collateral is used. Mortgage and fiduciary alienation are not the same structure.
Mortgage (hipoteca)
The property is given as collateral without transferring ownership to the creditor. Enforcement and its consequences follow the collateral rules and the contract.
Fiduciary alienation
Law 9,514/1997 defines the transfer of resolvable ownership to the creditor as collateral. The debtor keeps direct possession under the legal and contractual conditions. Payoff requires the collateral release procedures.
Before tying up the property
Compare CET, appraisal and registration costs, term, obligations and rules in case of delay. Default can lead to losing the property given as collateral. Do not conclude a contract is better just by its name or its installment.
To assess the effects of collateral in your case, read the contract and seek legal advice when needed.
Appraisal, contract and responsibility for the collateral
Buying a financed property is different from obtaining credit using a property as collateral. Check the asset eligibility, the appraisal, the registry status, the documents and the registration conditions before taking on expenses.
Do not confuse simulation timeframe, credit analysis and the release timeframe after registration. The banking reference separates proposal tracking from contract management; neither of these accesses is offered by Tecbank through this guide.
Check the total to pay, the applicable insurance and the effect of a possible installment pause. In the reference checked, the no-payment-month option does not forgive interest: it can be added to the balance, and insurance may remain due. Only count on a condition after seeing it in your contract.
Next step for your company
Learn the steps and prepare the opening of your business account. You stay within Tecbank.
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