Home equity

What it is

You unlock part of the value of a property you own free and clear, over a long term. Because there is collateral, the rate sits at a different level than a personal loan.

The property stays yours and you keep living in it. The fiduciary lien is the security for the contract, not a transfer of the house.

When it makes sense

• There is expensive debt, credit card or overdraft, to pay off
• You want to renovate, invest in your own business or fund studies
• There is a paid-off property sitting idle and a need for liquidity

How it works

• SimulationProperty value, amount you want and term.
• ComparisonI take the same deal to several institutions.
• Appraisal and analysisInspection, valuation and credit approval.
• Registry officeRegistration of the lien and release of the money.

What you will need

• Up-to-date property title record (matrícula)
• Property tax bill (IPTU) and proof that it is paid
• Photo ID, CPF (Brazilian individual tax ID) and proof of income
• Proof of address

The list can change with the institution and the size of the deal. I confirm what is actually required before you gather a single document.