How does the financing of the second property work?


Buying the first property is a great financial achievement. Now, imagine how cool it must be to be able to buy a second home, apartment or land? Is it possible to finance the second property?

The answer is yes. However, this negotiation may change a little in relation to the first – mainly, with regard to the use of resources such as the FGTS. Furthermore, is it really advantageous to own more than one property? There are many doubts for those who want to make more than one financing.

To help you reflect on this topic, we will analyze the main details that should be considered when resorting to a second mortgage. Do you want to know more about it? See below for a list of how it works!

Financing the second property is not (necessarily) easier

Many people think that financing a second property will be easier, as they have already built a relationship with the bank and, in theory, this should simplify things, right? The answer is: it depends. It is true that a good relationship with financial institutions is essential for the customer to always have access to the best credit conditions.

However, what many people forget is that having a good relationship with a bank is paying their bills and, mainly, the monthly installments, on time. Some customers feel that having a good relationship with these companies means hiring all the services they offer, such as:

  • credit cards;
  • personal loans;
  • capitalization titles.

Such an attitude is not considered correct. The buyer cannot commit more than 30% of his income to the payment of the monthly installments, regardless of the number of properties he is financing.

Therefore, if a person has a very high percentage of his income committed to paying debts or monthly payments, he may not have the credit approved for a second mortgage.

Therefore, what makes the acquisition of second financing easier is the same rule that guided the first business: an organization with financial life.

You can (again) use your FGTS balance

The use of FGTS in the purchase of the second property is possible, but, as you may remember, it is necessary for the buyer to respect some rules. After all, it is financing financed by the Housing Finance System (SFH). Among the rules are:

  • the first is that the value of the property must be a maximum of R $ 1.5 million;
  • the second rule is that the new property cannot be in the same city where the first property is already located.

This is to ensure that the SFH credit always prioritizes the purchase of the first property by the citizen. There are some exceptions, such as when the borrower does not own more than 40% of the property in which he lives. For example, a person who inherited a home with his two brothers. In theory, each of them owns 33.33% of the property.

Maybe it’s time to use SFI

The SFI (Real Estate Financial System) is broader in its rules and allows the buyer to have access to credit to buy properties that do not meet the requirements of the SFH (Housing Finance System). Commercial properties are among these properties.

Therefore, if you have decided to undertake and need to finance the headquarters of your company or the commercial point of your business, apply for a loan by SFI. Besides, your second property can be a country house, dedicated to rest, isn’t it?

You may not know it, but you can’t use SFH to finance real estate in rural areas, so if that is your goal, again, SFI is right for you. Of course, the second property in the same city can also be financed under these conditions. Therefore, if you have identified a good buying opportunity in your municipality, look for a bank to assess the conditions for the financing of the second property by SFI.

Don’t forget to compare rates before financing

The buyer should do extensive market research, using a financing and credit simulator to make sure he is doing a good deal. In addition to the fees, be sure to compare the Total Effective Cost (CET) value. As you may already know, a loan consists of several items, such as:

  • fees;
  • insurance;
  • taxes.

These addenda make one mortgage loan more expensive than another. Always consider the lowest CET value when financing the second property. By paying attention to these details, you will be able to make a good deal.

Financial planning remains essential

Buying a second property is an excellent way to increase your equity by renting or even selling that property if you see a good opportunity. However, this purchase cannot be made recklessly – even so that you do not put your current property at risk, which can be used as a guarantee for the new business if you have already paid off 50% of that asset.

In addition to checking whether the monthly fees will fit into your budget, be sure to plan for the future, making sure that the purchase will not compromise other financial goals. It is important to carefully assess whether the installments fit in your pocket before financing.

You must deal with another financing

In addition to real estate, people also tend to finance cars, land and even studies. These transactions are also considered when approving the financing of a second property.

Remember that you cannot commit more than 30% of your income to these payments. So, if you are paying for the financing of a house and a car, for example, you may find it difficult to get more credit.

In addition, these transactions can be understood as risk factors for the financial institution, causing interest rates to rise. In that case, it may be necessary to pay off the car, before resorting to financing the second property.

You can finance a property more than once

If necessary, whoever contracted a loan can refinance the debt. Therefore, if the bank allows it, there is no problem with refinancing and it can be done as many times as the financial institution allows, since there is no legal restriction.

It is possible to transfer real estate financing to another bank

There is the possibility of transferring financing from a property to another financial institution, and this is called portability. With this option, it is possible to find better credit conditions, which justifies the customer to migrate from the bank.

With portability, it is also possible to transfer the financing that was initiated by SFI to SFH, which allows the move to the SFH ceiling, which offers better credit conditions. Those who migrate to SFH may be entitled to the following benefits:

  • lower interest rates;
  • use of FGTS to repay debt.

In some cases, having received a better offer, the bank from which the loan was made may offer reduced rates. This can be very good for you, who, in the end, will be able to choose to change institutions or stay with them, as long as it offers some advantage.

What is the step by step to transfer real estate financing to another bank?

To transfer the financing to another bank, you need to follow a step by step. See what are the steps in the portability process:

1 – ask the bank for documents such as a copy of the contract, debt balance and the maturity date of the contracted operation. All documentation related to the operation must be made available;

2 – then do a search and find other banks that offer better payment terms;

3 – evaluate carefully the proposals received;

4 – after making the decision to make portability, inform the bank that you intend to transfer the credit, because it will be he who will request and start the process;

5 – in a maximum of five working days, the original bank may submit a counter offer;

6 – if the person chooses to switch banks, the new institution will send the funds to complete portability.

In this way, portability will be carried out in a few days and the amounts to be paid must be paid within the period stipulated with the new institution chosen.

Operation of the exchange of two financed properties

The exchange of two properties is nothing more than exchanging one property for another, with the payment of the difference between the two. In the event that the two properties are financed, the transfer of financing from both parties is carried out.

The banks will analyze the profile of the person who will assume the debt to make sure that they receive the amounts due. If the transaction is approved, a new contract must be signed by the two individuals who will make the exchange.

As we have seen, buying a new property indicates financial maturity and an increase in the individual’s equity. It is a business that can bring many advantages to the buyer, turning him into a real estate investor. However, financing the second property requires as much attention to your budget as the first.


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