Mortgage in Brazil: 30% down, rates, PRICE vs. SAC — and how to choose
Buying a home is a major financial milestone — and a mortgage is how most buyers in Brazil get there. This practical guide explains the 30% down payment rule, how rates and costs really work, and the differences between the PRICE and SAC amortization systems, with hands-on examples to see the impact on your budget. You’ll also get a checklist and a strong CTA to the simulator to test your numbers in minutes.
1) Practical rule: 30% down
Planning rule we use in this guide: target 30% of the property value as a down payment. It’s conservative and helps keep your monthly payment comfortable while cutting total interest paid. Banks may accept different LTVs depending on income, risk profile and property type — but aiming at 30% gives you stronger negotiating power and smoother approval.
2) Costs and rates (what shapes your payment)
- Interest rate (fixed, floating or hybrid — e.g., IPCA + spread).
- Amortization system (PRICE or SAC — see below).
- Mandatory insurance (MIP/DFI) and admin fees (vary by institution).
- Indexation (for indexed contracts, e.g., IPCA): impacts balance and payment over time.
Your payment mixes principal amortization + interest + insurance + fees. Higher effective rate → higher total cost. Longer terms lower monthly payments but increase accumulated interest.
3) PRICE vs. SAC (which one suits you?)
- PRICE (constant installment): monthly payment is stable. Early on, you pay more interest and little amortization; amortization grows gradually.
- SAC (constant amortization): you always amortize the same principal amount. Payments start higher and decrease over time as interest is charged on a shrinking balance.
4) Practical cases (realistic numbers)
Base scenario for comparability. Numbers are illustrative to grasp the mechanics — run your own values in the simulator.
4.1 Base scenario
- Property: R$ 500,000
- Down (30%): R$ 150,000
- Mortgage: R$ 350,000
- Term: 360 months (30 years)
- Illustrative rate: 10.5% p.y. (~0.837% p.m.)
System | Month 1 – Payment (R$) | Month 1 – Interest (R$) | Month 1 – Amortization (R$) | Month 12 – Payment (R$) | Month 12 – Interest (R$) | Month 12 – Amortization (R$) |
---|---|---|---|---|---|---|
PRICE | ~R$ 3,200 | ~R$ 2,930 | ~R$ 270 | ~R$ 3,200 | ~R$ 2,870 | ~R$ 330 |
SAC | ~R$ 3,770 | ~R$ 2,930 | ~R$ 840 | ~R$ 3,700 | ~R$ 2,850 | ~R$ 850 |
In PRICE, the payment is virtually the same — the composition changes: interest falls slowly, amortization rises slowly. In SAC, amortization starts high and reduces principal faster — that’s why total interest over the contract tends to be lower.
4.2 What if I make extra amortizations?
Using bonuses/FGTS/13th salary to amortize shortens the term or reduces the installment. Reducing the term (when possible) often yields the largest interest savings.
Scenario | Lump-sum in Month 24 | Effect on Total Cost | Note |
---|---|---|---|
PRICE | R$ 20,000 | Moderate future interest reduction | Keep payment constant; reduce remaining term if allowed |
SAC | R$ 20,000 | Strong future interest reduction | Faster principal drop; biggest gain when reducing term |
4.3 Using FGTS: down + periodic amortizations
FGTS can help fund the down payment and, usually every two years, amortize the balance. The benefit is twofold: enables the purchase and reduces interest over time.
Step | Action | Effect |
---|---|---|
1 | Use FGTS in the down payment (within rules) | Lower starting principal |
2 | Amortize with FGTS every 24 months | Shorter term and lower total interest |
3 | Use bonuses/13th salary for extra amortizations | Accelerated amortization (bigger gain with SAC) |
4.4 Portability (switching banks)
If rates drop or another bank offers better terms, consider portability. Switching when your outstanding balance is already lower magnifies the savings on the remaining contract.
5) Tips to pay less interest
- Plan your 30% down early with low-risk, liquid investments.
- Keep an emergency fund (3–6 months) to avoid default risk.
- Prefer SAC if your budget tolerates higher initial payments and you want lower total cost.
- Make extra amortizations to reduce term (when allowed).
- Compare CET (total effective cost) — nominal rate doesn’t tell the whole story.
- Read the contract (indexation, insurance, adjustments, portability, FGTS rules).
- Negotiate (rate, fees, conditions). Good clients get competing offers.
- Review annually the case for portability, especially in a falling-rate cycle.
6) Approval & purchase checklist
- ✅ Proof of income (pay slips, tax return, bank statements).
- ✅ 30% down + 4–6% for deed/taxes/registry/appraisal.
- ✅ Check your score and tidy up debts (avoid late payments 6–12 months before).
- ✅ Verify property documents (title, liens, regularity).
- ✅ Compare at least 3 proposals (CET, indexation, insurance, fees).
- ✅ Choose the system (PRICE vs. SAC) based on cash flow vs. total cost.
- ✅ Plan periodic amortizations (FGTS/bonuses) and an annual review.
Run your simulation
With the right basics, decisions get easier. Run a complete simulation with your income, property value and term. Compare PRICE and SAC, test extra amortizations, and see the impact on the total cost.
💡 FlowZenHub tip: if the first months feel “easy”, use the slack to amortize and cut the term — your future self will thank you.