When is it worth making a credit transfer?

Transferring your home loan can be a way to reduce your monthly debt. But after all, when is the change worth it? This is precisely what we talk to you about today.

Credit transfer occurs when credit is passed from one bank to another. In other words, you are taking out another credit (loan) to pay off the previous loan. This way, it's possible to obtain lower interest rates, reduced monthly installments and savings on the total loan amount.

This transfer is more common for mortgage loans and is usually designed to take advantage of the drop in interest rates. When rates are favorable, it is time to carry out a simulation to check whether there is a more advantageous offer on the market to pay the amount still outstanding.

But in what situations is it really advantageous to proceed with a credit transfer?

One of the first signs that it’s time to look for alternatives is when your house loan provision is already starting to become a burden If you already consider your current value to be too high for your possibilities, then it's a good time to review.

Another warning that it may be time to review your current conditions or transfer your House Loan is when the monthly fees for the financial products you have subscribed when acquiring credit (such as insurance or credit cards) is also increasing.

Also, if your House Loan has a variable rate, it's guaranteed that we can find a better option for you.

Transferring credit to another bank has any associated costs??

Currently banks are bearing all costs associated with credit transfers, making this a free process for the client..

Even so, be aware that some documents such as the property valuation and new deeds may be necessary, the costs of which will obviously be charged to you, even if they are residual values when you are already exempt from paying for the transfer service itself.

What documents do I need for this process?

Transferring your House Loan from one bank to another is a relatively simple process and you can do it at any time. What is important is that when you decide to move forward, you are able to gather all the necessary documents:

  • Identification of the loan holder(s);
  • Proof of address;
  • Proof of IBAN;
  • Map of Banco de Portugal's credit responsibilities;
  • Last Income Tax Declaration and itssettlement note;
  • The last 3 salary receipts;
  • Os extratos bancários referentes aos últimos 3 meses;
  • A copy of the house deed;
  • Declaration from the employer.

Once all the necessary documentation has been gathered, the transfer process is usually quick.

This way, if you are thinking about transferring your House Loan, contact us so that we can help you find the best credit option, depending on your needs.

Go Crédito

GO Crédito is a company specialized in credit intermediation, authorized and supervised by the Bank of Portugal. We provide credit intermediation and consultancy services quickly and effectively.