Housing credit transfer is an option when the installments on your home purchase loan are heavy. Or, when others are and the cost of the monthly budget is high.

It is nothing more than a financial operation involving two banks. With it, you can obtain better conditions for your existing loans. In this case, specifically for housing.

Below, then, check out more about this chance to rebalance your budget and save money. Keep reading and find out more!

This is a banking operation that allows you to transfer a loan made at one bank to another banking institution. In other words, the debt is transferred. With it, the original creditor is paid and there is a second creditor.

For example, imagine that you took out a loan with bank X. However, over time, the conditions of the installments made them too high. As a result, your budget tightened and it became difficult to sustain payments. Then, you discover that bank Y has better conditions for the same credit. Thus, you can hire it and, thus, bank X is no longer a creditor, as bank Y is now a creditor.

In this situation, bank Y pays bank X the amount of the outstanding balance (credit) that you had at the first institution. Thus, the debt with bank X ceases to exist. In its place, a debt arises with bank Y, which is the new creditor.

This is how housing credit transfer works. It is the possibility of changing creditors. What justifies this is that the loan for the outstanding balance with another bank has better conditions. Therefore, it is a way to reduce the value of the debt and the installments. Likewise, to save money and give the budget a breather.

This is possible by offering lower interest rates and others that affect the balance. Each bank can establish its own rates, respecting limits imposed by law. So, if your bank doesn't offer the best conditions, why not look for someone who does?! Below, check out how to take out housing credit.

To do this, you need to find other housing credit options. This is a process that requires research and simulations of conditions. After finding a more beneficial option than the original, it is still necessary to wait for the credit analysis.

After all, the banking institution to whom you want to transfer a debt needs to analyze whether it is trustworthy. For example, it is not possible to carry out this type of financial transaction when you are on the Banco de Portugal “black list”. 

After analysis, the bank to whom you want to transfer your home loan may offer a proposal. At this point it is important to read the contract carefully and analyze all fees and other values.

If the proposal is beneficial and reflects the simulations, simply accept the proposal and forward the necessary documentation.

Firstly, there is the time related to searching for conditions and analysis by banks. However, after contracting the mortgage transfer, the new creditor (bank Y, as per the examples above) contacts bank X to carry out the operation.

Bank X then has 10 days to provide all the necessary information and then the process continues. Therefore, the transfer does not occur overnight and requires a few days to be available.

The bank that was initially the creditor of the debt cannot deny the transfer of the housing loan. After all, he will receive the amount due from another institution. Therefore, you will not be at a loss.

However, nothing prevents a bank from denying you the loan, per se. That is, when seeking credit conditions in the market, institutions are not obliged to grant them. The obligation only refers to the original creditor when the client finds another institution to make the transfer.

There are several banking institutions that accept credit transfers. Therefore, there are countless options for those looking for this type of operation. This way, it is possible to carry out a series of simulations and find an option that is perfect for you.

Check out some of the banks that offer home loan transfers and may have good options for you.

Novo Banco is one of the available options. It allows the transfer of credit for acquisition of housing, own housing, land, garage and others. Additionally, it offers a fixed or mixed rate of up to 30 years. It is possible to do the simulation online, on the bank's website.

Another option for those who want to transfer housing credit is Santander. However, the operation must be carried out in person. In other words, it is necessary to go to a branch and submit documents there about the original loan transaction and also about the property. Only then is a proposal presented.

CCT bank offers the possibility of transferring housing credit. The institution offers payment for the transfer. That is, the notary fees and fines that may result from this. Furthermore, it offers different conditions and benefits depending on the value of the transfer.

It is possible to seek services at CTT branches or carry out a simulation of a home loan transfer via the institution's website. With this, you can find out what the bank has to offer and whether it is possible to spend less when paying off your home.

And, if in addition to housing credit, you are looking for a loan, see the content we have prepared below! In it, you receive the necessary tips and care when applying for a loan in Portugal to buy any asset, such as a car, for example.