Loan portability and refinancing

What it is

With loan portability, moving a loan to another bank at a lower rate, the outstanding balance of your financing, property or vehicle, migrates to the bank that offers better terms. The debt is the same; what changes is who collects it and how much.

People who signed at a high rate and never revisited it are usually paying well above what the market charges today. It is one of the easiest calculations to run and one of the least often run.

When it makes sense

• You signed at a high rate and market rates have fallen since
• The instalment weighs and you want to stretch the term
• Your bank does not offer a renegotiation that solves it

How it works

• Current balanceI pull the outstanding balance, remaining term and contracted rate.
• ComparisonI check who accepts the portability and at what cost.
• Offer to your current bankYour bank has the right to match it; if it matches, you gain without moving.
• TransferPaperwork and migration of the contract.

What you will need

• Contract and statement of the current financing
• Up-to-date outstanding balance
• Photo ID, CPF (Brazilian individual tax ID) and proof of income
• Property title record (matrícula) or vehicle registration document (CRLV)

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.