How to get capital for the home loan down payment?

Do you already have the necessary equity to move forward with a mortgage? Don't waste any more time, contact the credit intermediaries at Poupança no Minuto and let's move forward with your process. If you still need to discover methods to save money for the down payment to give to the bank, we explain next.

Since banks currently only finance a maximum of 90% of the value of the property for primary and permanent housing, and a maximum of 80% for secondary housing, the customer must provide at least 10% and 20%, respectively, of the appraisal value or acquisition of the house (the lowest). Therefore, let's go through the various steps you must follow to save money.

Start by opening a savings/emergency fund account.

If you want to start saving money, the first step should be, of course, to create a space where you can put these capital. Ideally, it should be a bank account, and not keep the money physically. In any of the methods, it should be difficult to access.

For example, if you create a savings account or emergency fund, this bank account should be from a different bank than your main account, so you cannot easily transfer money from one account to the other. If you do this, it will lead to more temptation to do so due to convenience.

If you can access the money in hand, the same thing happens. So, if you do so, at least put the money in a piggy bank that can only be accessed by breaking it. This makes the process more complex, and you will not have as much impulse to go get the money.

Reorganize the monthly budget

To save money, you should first reorganize your current monthly budget. If you don't usually control your spending in relation to your income, then it's time to start doing it.

Tracking our expenses is the best savings strategy, to start understanding what we are spending essentially and unnecessarily. The exercise we should do to start organizing the budget is: "Where can I cut back and what can't I really give up?".

Start by tracking all the income you earn. Then, write down the fixed and essential expenses, with their respective values (gas, food, installments, etc). Next, assign a value also to variable expenses (leisure and culture, dining out, etc). Finally, define a value to allocate to savings. And the goal will be to meet all the values you assigned, without exceeding any category.

Opt for savings strategies.

There are various savings strategies that can help you in the short, medium, or long term. Some are just small steps to incorporate into your daily life and, if you absorb them into your routine for some time, it can make all the difference.

We have as an example strategies like the well-known “50/30/20”. In this, the goal is to divide your income according to the expenses you have to make.

That is, 50% of the income you earn should be used to pay fixed expenses such as rent, loan installments, school expenses, groceries, water, gas, telecommunications, fuel, etc; then, 30% of income is directed to lifestyle expenses and personal care, and the remaining 20% of income should be placed in a savings fund or emergency fund. This savings, in this case, will go towards your next goal: building capital for the down payment on a mortgage.

But there are numerous other strategies, such as the 52-week challenge, which consists of setting aside one euro in the first week, two in the second, and so on. This will allow us to save 1,378 euros by the end of one year (52 weeks).

Another strategy, which involves not exceeding the value set for variable expenses in the budget, can be an exercise to be done whenever making a purchase. To understand if the purchase you are about to make is essential, imagine the following scenario: if someone came up to you and gave you the choice between the product in question or the cost of it, what would you choose? Well, if you chose the money, it means that you do not necessarily need this product right now...

Invest in financial products with capital guarantee.

Have you ever thought about investing your money, so that, like a plant, after sowing the seed, it begins to grow? This can be a good way to build up your own capital. However, they must be financial products with capital guarantees, in other words, with a guaranteed return.

It is an example of the Pension Savings Plan, whose return can be guaranteed, but with low profitability. This happens in the case of PPR Funds, and you can choose the fund that suits you best according to the level of risk. Products with guaranteed capital do not have as much expectation of appreciation. However, in the long run, it can generate a solid savings.

There is also the option of State savings certificates, products with a return that is automatically applied to a new return. This is because it represents the power of compound interest through interest that generates a return on interest. The risk in this case is also low.

And still with guarantee of capital, there is the solution of capitalization insurance , with a guaranteed interest rate every year. This may change with the renewal of the policy.

Turn a hobby into a service.

If you have a hobby or activity that you enjoy doing, why not monetize it? Turning your passion into a service that can generate income can be a good option.

Let's see: if you enjoy cooking, you can start a business selling meals or sweets, promoting it on social networks or through a website. Or if you like drawing, why not frame your drawings and sell them?

Think about your tastes and what could lead to a profitable business. You may be missing out on a source of income that, in the medium/long term, could help you with the equity for the entry of your mortgage!

Get informed, ask for help, and choose the best proposal.

The essential piece of this puzzle is to find the most suitable proposal for you, which provides you with the greatest savings, under the best conditions and the lowest down payment to the bank. And how to do that? Asking for help!

Know that, with a credit intermediary, besides getting help through a free service, you will not lack information and support. Intermediaries deal with clarifying all your doubts, all the bureaucracy and communication with the banks, and negotiating the right conditions for you.

The Poupança no Minuto provides a personalized intermediary service, where you communicate with a single agent throughout the process, so that together they achieve a single goal: Saving.