Financial System Notice
This simulator is based on the Brazilian financial system models (SAC and PRICE tables). Interest rates, taxes, and amortization rules may vary significantly in your country.
Mortgage Simulator
SAC or PRICE: Which to choose?
The choice of amortization system completely changes your cash flow and the total interest paid to the bank over 30 years.
SAC System (Decreasing)
The most common in Brazil. You pay off the same amount of the principal every month. Advantage: You pay much less interest overall. Disadvantage: The first installments are much higher, requiring a higher household income for approval.
PRICE System (Fixed)
Here, all installments have practically the same value from start to finish. Advantage: The first installment is lower, making credit approval easier with lower incomes. Disadvantage: The outstanding balance drops very slowly at the beginning, making the total interest paid significantly higher.
Worked example
A $500,000 property, $100,000 down, 360 months and 9.5% annual interest, with insurance and fees estimated by the calculator. With SAC (declining payments), the first payment is $4,372.72 and the last $1,145.10, with $548,108.78 of interest in total. With PRICE (fixed payments), the payment starts at $3,475.15, but interest adds up to $770,055.54: $221,946.76 more.
What goes into the payment
- Principal: the part that reduces the debt.
- Interest on the outstanding balance.
- Mandatory life and property insurance, as required in Brazil. If you leave it blank, we use 0.05% a month on the balance.
- The bank's monthly fee. If you leave it blank, we use $25 a month.
Transfer tax and registry fees are usually paid upfront; if left blank, we estimate 5% of the property value.
Minimum income
Banks usually cap the payment at about 30% of gross household income, so the calculator divides the first payment by 0.30. The exact limit varies by bank and program.
Frequently asked questions
How much down payment do I need?
Brazilian banks generally finance up to 80% of the property value, so the down payment is usually at least 20%. Housing programs and some banks have their own rules.
Extra payments: shorten the term or lower the payment?
Shortening the term saves more interest, because the debt ends sooner. Lowering the payment eases the monthly budget. The simulation shows the case without extra payments.
Are the results exact?
They are a simulation. They do not include balance indexation, and insurance varies with age and bank. Use them to compare scenarios and check the bank's offer.