Several financial institutions offer exclusive lines of credit for financing construction materials. Usually, this type of credit makes more sense for those who already have a property ready and only need to make renovations or expansions.
In Brazil, financing for the purchase of finished properties does not allow a part of the credit to be applied in renovations or other works. Thus, if your plan was to buy a finished property and renovate it, you will have to think of another source of money for this project.
What is the best financing for building material?
Likewise, the best financing for construction material varies according to the profile and personal preferences of each consumer. Normally, people prefer to obtain lines of credit offered by the institution in which they are already account holders.
However, you need to be very careful, because although this is a comfortable choice, it can end up being the most expensive option. Therefore, it is necessary to analyze the conditions offered and make a comparison with what is offered by other institutions.
However, one of the most advantageous credit options that can be used for renovation, which includes everything from construction material to furniture and decoration, is the loan with a property guarantee.
This is a good option for people who already have properties paid off or have a debt balance of only 30% of the total value of the property. It is possible to refinance your property at rates below those normally practiced in the market, and the property is used as collateral for the financial institution in this operation.
In this loan, the money can be used in the way you prefer for expansion or renovation: to pay for labor or hire landscaping professionals, for example. This type of item could not be paid with traditional lines of credit, such as Construcard, which must be used exclusively for building materials.
How does home construction financing work?
Some financial institutions also offer financing for the construction of residential building. This type of credit has the advantage of the fact that, many times, the contracting of financing through the creditor financial institution is facilitated for the buyers of the built units, even during the construction process.
For properties in the plant, Caixa facilitates the production of real estate projects with direct financing for individuals. Thus, the property in the plant can be purchased by interested people at any stage of the work. Interested parties are grouped together by an Organizing Entity, which coordinates the undertaking with the construction company.
In the case of Production Support, the company offers an exclusive line of credit for companies in the civil construction sector of all sizes. Through it, it is possible to finance the purchase of units for individuals, while the work schedule is carried out.
You can join this line in two ways:
No financing to Legal Entities
Aimed at the production of projects in which a group of Individual customers will finance the acquisition of a property in the plant. Thus, these values added to the company’s resources will be enough to pay for the entire work. In this case, there is the possibility of continuing to transfer the units at CAIXA during the construction phase.