In a consolidated mortgage loan, multiple loans can be combined into a new operation with a property as collateral. The mortgage gives the credit institution a guarantee over the property associated with the financing.

Therefore, this solution should be analyzed more carefully than an unsecured consolidation.

What is the main risk?

The main risk is related to the guarantee itself. When a property is given as collateral for a loan, failure to meet obligations may have consequences on that property, according to the contract and applicable legislation.

Therefore, before using a house as collateral to restructure debts, it is essential to assess the ability to meet the new installment throughout the entire term.

Can a mortgage reduce the payment?

It may, depending on the operation's conditions. A mortgage consolidation may allow a different term and distinct financing conditions from the consumer credits being consolidated.

But a lower payment should not be confused with a lower total cost.

Before consolidating, compare these costs

Imagine you have credits with relatively short terms. By consolidating them into a longer-term operation, you can get a lower monthly payment. Before proceeding, compare:

• Payment • Term • APR • EAR • MTC • Guarantee setup costs • Insurance • Fees • Total cost

What if the financial situation worsens?

This is another key issue. Before consolidating with a mortgage, you should assess if you could continue paying the loan in situations such as:

• Loss or reduction of income
• Increase in family expenses
• Change in professional situation
• Unexpected expenses

When does it make sense?

Poupança no Minuto can be considered when there is a real need to reorganize several financial commitments and the new structure is sustainable. The decision should not be made only because the new payment is lower. The balance between monthly payment, term, total cost, and risk associated with the guarantee should be analyzed.

Consolidating loans with a mortgage can be a solution to reorganize the budget, but it puts a property as collateral. Therefore, before proceeding, you must understand exactly: how much you will pay per month + for how long + how much you will pay in total + what guarantee you are providing.

Are you considering a consolidation? Do your free simulation at Poupança no Minuto and see which options may be available for your case.

FAQ

Consolidating loans with a mortgage is cheaper?

Not necessarily. It can reduce the payment, but the term and fees may increase the total cost.

What is the main risk?

The property given as collateral is associated with the fulfillment of credit obligations.

Can I lose the house?

In case of breach, there may be consequences on the property given as collateral, according to the contract and law.

Is it worth consolidating with a mortgage?

It depends on the financial situation, existing credits, and the conditions of the new operation.

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