High costs to build a house? Learn about the home construction loan at [URL].
As interest rates have been rising, so have the costs of building properties, making access to housing more difficult for the Portuguese. Costs for building a house rose again in August, but there are options that make this process easier. Learn about housing construction loans in this article.
Let's move forward with the purchase of a plot of land to build the house you've always dreamed of? It is possible, through housing credit for construction. Contact the credit intermediaries of Poupança no Minuto to simulate your specific case, and access free assistance throughout the entire process.
Costs to build a house increase 2.5% in August
Construction costs have been rising concurrently with interest rates, monthly. It was in August that they rose again, now by 2.5% compared to the value observed in the previous month.
"In August 2023, it is estimated that the costs of new housing construction have increased by 2.5% year-on-year, up 0.4 percentage points (p.p.) from the previous month", as we can read in the publication on the Notícias ao Minuto website. Access the full article here.
In addition, also "the price of materials showed a year-on-year variation of -0.7% and the cost of labor of 7.1%".
So, just like interest rates, the cost of building houses has also been subject to increases, so the Portuguese are facing even more difficulties in accessing housing in the Portuguese real estate market.
The budget is also insufficient for the construction of a house? Learn about the housing credit for construction.
Budget not enough? Choose a construction housing credit.
For the construction of a house, it is also possible to resort to financing, through a home construction loan.
This type of loan allows the purchase of land for a construction project, based on the approximate cost of building.
What are the differences between a home construction loan?
The construction housing loan is similar to a normal housing loan, with the difference that the loan amount is made available in tranches (between three and six), in parallel with the progress of the construction work. During the first period, ranging from 24 to 36 months, you have access to capital grace period and only pay interest.
Regarding other distinctions, the approval of construction housing credit can be more demanding since the guarantee given is only the land, and the amount is released according to what is being built on it. Also, the evaluation works differently: it is based on the architectural project.
As for conditions, the refund period may be longer than the mortgage for an already built property, with lower interest rates. However, conditions always depend on the bank where you contract the loan.
Do I need a viable plot of land to hire a credit?
Yes, in order to apply for a home loan for construction, you must already have a chosen land with building feasibility. Ideally, there should be an approved project by the municipal council.
However, it's not mandatory: you can apply for the loan without a project, but it will be an even slower process to approve. If speed is something on your scale, look for a plot of land with feasibility and already approved for construction beforehand. This way, it will be easier and more likely to get approval for your construction credit.
A credit intermediary can streamline the process.
If you are considering moving forward with a home construction loan, whether or not you already have a viable piece of land, know that a credit intermediary can expedite the entire process.
In order to have more possibilities of guaranteeing financing approval and for the process to be faster, a credit intermediation service mediates the communication between a client and the banks.
Credit intermediaries from Poupança no Minuto can find the best financing conditions for purchasing land and building your dream home.
Do not delay your project anymore: Start the construction of your property as soon as possible, with the help of our free and fully personalized services for you!