High costs to build a house? Learn about housing credit for construction.

Let's move forward with the purchase of land to build the house you've always dreamed of? It is possible, through home construction credit. Contact the credit intermediaries at Poupança no Minuto to simulate your specific case, and access free assistance throughout the entire process.

Cost to build a house increased by 2.5% in August

Construction costs have been rising monthly along with interest rates. It was in August that they increased again, now by 2.5% compared to the value observed in the previous month.

"In August 2023, it is estimated that the costs of new housing construction have increased by 2.5% year-on-year, 0.4 percentage points higher than the previous month,” as we can read on the publication from the Notícias ao Minuto website.

In addition, "the price of materials showed a year-on-year variation of -0.7% and the cost of labor of 7.1%".

So, just like interest rates, the cost of building housing has also been subject to increases, so the Portuguese are faced with even more difficulties in accessing housing in the Portuguese real estate market.

Is the budget also insufficient for building a house? Get to know the home construction credit.

Budget not enough? Opt for a construction home loan.

For building a house, it is also possible to resort to financing, through a construction housing credit.

This type of loan allows for the purchase of land for a construction project, based on the approximate cost of construction.

What are the differences in a construction housing loan?  

Building construction mortgage credit is similar to a normal housing loan, with the difference that the loan amount is made available in tranches (between three and six), parallel to the progress of the construction. During the first period, ranging from 24 to 36 months, you have access to capital grace period and only pay interest.

Regarding other distinctions, the approval of construction housing credit may be more demanding since the only guarantee given is the land, and the value is released according to what is being built on it. Also, the evaluation works differently: it is based on the architectural project.

Regarding conditions, the refund period can be longer than the home loan for an already built property, with lower interest rates. But conditions always depend on the bank where you take out the loan.

Do I need to have a viable land previously to apply for credit?

Yes, in order to contract a housing loan for construction, it is necessary to have already chosen a land with viability for building. Ideally, there should be an approved project by the city council.

However, it is not mandatory: you can apply for the loan without a project, but it will be an even slower process to approve. If haste is something on your scale, look for a plot of land with feasibility and already approved for construction beforehand. In this way, it will be easier and more likely to approve your credit to build.

A credit intermediary can speed up the process.

Considering moving forward with a home construction loan, whether or not a plot of land has already been approved, know that a credit intermediary can streamline the entire process.

To have more possibilities of guaranteeing financing approval and speeding up the process, a credit intermediation service mediates communication between a client and banks.

Savings In Minute credit intermediaries can find the best financing conditions for buying land and costs for building your dream home.

Don't postpone your project any longer: Start building your property as soon as possible, with the help of our free and fully personalized services for you!