Do you want to apply for a housing loan? The rules governing the granting of financing establish important limits on the loan term and the effort rate. Learn what has changed and how these rules can affect the amount you can ask the bank.

What changed in housing credit rules?

The rules applicable to housing credit establish limits that banks must consider in assessing customers' financial capacity.

Among the most important aspects are the effort rate and the maximum financing term.

These rules do not mean all requests are automatically approved or rejected. The bank continues to make an individual assessment of each customer's solvability.

In practice, your income, other credits, expenses, and loan features remain decisive in determining how much you can request.

Effort rate of 45%: what does it mean?

The effort rate represents the percentage of monthly income used to pay credits.

It is calculated through the ratio between the total monthly loan installments and the net monthly income.

For example, if a household has a monthly net income of 3,000 euros and pays 1,200 euros in loan installments, the effort rate will be:

1.200 € ÷ 3.000 € × 100 = 40%

In this case, 40% of the monthly income is allocated to credit payments.

The 45% reference means a situation where installments represent 45% of income is considered within this reference limit.

However, it does not mean that anyone with an effort rate below 45% automatically gets the credit approved.

What enters the effort rate calculation?

The calculation considers the customer's credit responsibilities.

This means that if you already have other loans, their installments may affect your ability to take on a new housing loan.

Imagine you receive 2,500 euros net per month and already pay:

Credit

Monthly payment

Personal loan 200 €

Car loan 250 €

New housing loan 600 €

Total 1.050 €

The effort rate would be:

1.050 € ÷ 2.500 € × 100 = 42%

In this example, installments represent 42% of monthly income.

Therefore, having other credits can reduce the amount you can get to buy a house.

Does the credit term also change?

The maximum housing loan term depends on the client's age.

For borrowers aged 35 or younger, the maximum term can reach 40 years.

For borrowers over 35 years old, the maximum term is 35 years.

The deadline is important because it directly influences the payment value.

The longer the term, the lower the monthly payment for the same financed amount. However, the credit will be paid over a longer period and the total interest cost may be higher.

Therefore, choosing the maximum available term does not necessarily mean choosing the cheapest solution.

These rules mean I can ask for less money?

It can happen. The financing capacity is directly related to the payment amount you can afford.

If the bank considers that the new payment, added to other obligations, exceeds the considered appropriate financial capacity, it may reduce the amount available for financing.

For example, imagine two people with the same income of 2,500 euros per month.

The first has no other credits.

The second payment currently pays 400 euros per month on a personal loan and a car loan.

Even if both have the same return, the second person will have less margin to take on a new housing loan.

What if my effort rate exceeds 45%?

A higher effort rate than the reference does not necessarily mean the credit will be automatically denied.

The financial institution assesses solvency and considers different elements of the client's situation.

However, the higher the installments' weight in the income, the greater the difficulty in obtaining the desired financing.

If near the limit, it may be helpful to reduce other credit responsibilities before proceeding with the application, increase the down payment, or adjust the property value you intend to buy.

Does the house value affect the financing?

Yes. For a housing loan to purchase a permanent home, the financing is generally limited to 90% of the lower value between the purchase price and the property's appraisal value.

This means that bank evaluation can also affect the amount the bank is willing to finance.

Example

Imagine you find a house for 250,000 euros.

If the bank appraisal assigns a value of 230,000 euros to the property, the loan calculation may use 230,000 euros as a reference.

Considering a 90% limit, the financing would be:

230,000 € × 90% = 207,000 €

In this scenario, you would have to cover the difference with own capital, plus other costs associated with the purchase.

That's why the price asked by the seller is not the only relevant value to understand how much you can finance.

Does the bank look only at the effort rate?

No. The effort rate is just one of the elements considered in the analysis.

The bank may also assess:

Returns and respective stability

Professional situation

Age of holders

Existing credits

Credit history responsibilities

Property value

Amount requested

Loan term

Family group features

Ability to support the costs associated with credit

The final decision depends on the overall assessment of solvency.

What can you do to increase the chances of approval?

If you are preparing a housing loan application, there are some steps that can help present a more balanced financial situation.

1. Reduce existing credits

If you have personal credits, car or other loans, reducing these obligations can free monthly margin.

Increase the down payment

The higher the amount you can secure with own capital, the less financing you may need.

Adjust the house price

If the property you want to buy implies a payment too high for your income, look for a lower value house to improve financing ability.

Compare different proposals

Poupança no Minuto. Financing conditions vary between institutions. Comparing offers allows analyzing different rates, terms, installments, and costs.

Are the new rules preventing the bank from approving a loan above these amounts?

The rules set limits and criteria for credit granting, but the analysis is not limited to a single percentage.

The bank must assess the client's solvency and determine if they can meet the credit obligations.

That's why two customers with the same income can receive different decisions, depending on the other characteristics of their financial situation.

The new rules make the effort rate and loan term especially important in preparing a loan application. The 45% reference considers the weight of credit installments in income, and the maximum term can reach 40 years for borrowers up to 35 years old and 35 years for those over 35. Approval still depends on the individual solvency assessment.

Are you applying for a housing loan? Do a simulation

Before choosing a house, it's important to understand how much you can finance and the impact of the payment on your budget.

A simulation allows analyzing different scenarios and understanding which loan amount is suitable for your situation.

Frequently Asked Questions

Is the maximum effort rate exactly 45%?

Forty-five percent serves as a reference in assessing solvency. Approval does not depend solely on this percentage and an individual financial analysis of the client's situation is conducted.

Do other credits enter the effort rate?

Yes. Payments from other credits are considered in the assessment of the client's financial capacity and may reduce the available margin for a new housing loan.

What is the maximum term for a housing loan?

For borrowers aged 35 or younger, the maximum term can reach 40 years. For borrowers over 35, the limit is 35 years.

Does a longer term help get approval?

You can reduce the monthly payment for the same financed amount, which may affect the effort rate. However, it increases the payment period and may increase the total credit cost.

Is the loan approved if the effort rate is below 45%?

Not necessarily. The effort rate is just one of the factors analyzed. The bank also evaluates income, other credits, professional situation, property characteristics, and other relevant elements for solvability.

Can I finance 100% of the house value?

No housing credit for the purchase of a own and permanent home, the financing is usually limited to 90% of the lower value between the purchase price and the property valuation. There are specific regimes that may have different rules, but they should be analyzed separately.

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