Young mortgage credit 100% financed: How to make a down payment on the CPCV?
The benefit of the public guarantee that the State has implemented for young people up to 35 years old allows financing of the house to 100% without having to finance any down payment. But what happens to the signal that has to be paid in the CPCV, before the deed? Find out the options next.
How to finance the CPCV signal without savings, in 100% financed young housing credit?
With the new public guarantee measure, which allows young people up to 35 years old to access 100% home financing, some challenges arise.
Remember that this measure guarantees the remaining percentage not covered by banks in home purchase mortgages, up to 15%.
In other words, young people who meet all the requirements for access to this measure can access bank financing (between 80% and 90% of the property value) and public guarantee to finance the remaining value.
Therefore, it can apply to young people who do not have savings to use as a down payment in this process. But, in this case, the question arises: How to give the signal value in the Promise Purchase and Sale Agreement (PPSA)?
Notice before: CPCV: What is it and what is this contract for?
This contract is signed before the property deed and typically requires a down payment (entry fee) to the seller. But what if someone doesn't have this amount?
There are two options for these cases:
1st option
The seller can accept to reserve the property and sign the CPCV without the down payment (usually 10% of the total). However, this is a rare option, as sellers find it harder to accept these cases, since the payment provides greater security and commitment on how the business will progress.
2nd option
The seller accepts that the down payment amount is lower than the usual 10%, and the buyer signals the house and signs the CPCV with an agreed-upon amount between the two. In this case, the bank still finances 100%, and the buyer receives the down payment amount again.
For example:
- Acquisition value: €100,000
- Signal: 2,000€
- Bank financing: 100,000€
The buyer pays the 2,000€ deposit when signing the CPCV and, at the deed, is missing to deliver 98,000€. The bank transfers 100,000€ to the buyer, and at the deed, only transfers 98,000€ to the seller. The loan remains at 100,000€ and the buyer recovers the initially handed 2,000€.
There is still an exception currently, in certain banks, which is a down payment credit line. Through this line, both parties sign a CPCV with a down payment value of up to 10% of the purchase price, the customer takes the CPCV to the bank in question to finance the down payment value and this is delivered to the seller, and, at the deed, transfers the remainder. However, this situation requires that the CPCV and the down payment transfer be done with all parties present at the counter, which can complicate logistics.
Read more: How to save to make a down payment on your first house?
If you are looking to buy a home financed through this measure, save yourself from this whole process: The credit intermediaries of Poupança no Minuto facilitate and take care of everything for you until the deed, at no cost, to ensure that you access this benefit without worrying about anything.
Simulate now and start your process today!