São Paulo mortgage quote: comparing 5.75% fixed for 15 years

[yuki_north]

The 5.75% headline is not enough to compare this loan. My specific concern is that the figures may assume a refinance that never becomes available.

The quote relates to a São Paulo purchase of around R$6,328,000 and a 15-year fixed period, but the relevant LTV band and lender charges raise the real cost. Should I compare offers over my likely holding period, across all 15 years, or both? I also need to understand the early-settlement and portability conditions. Which missing details—especially the principal and whether 15 years is the whole term—would materially change the calculation?

 

[studyTheKey]

I’d compare the actual cash flows, not the headline rate: upfront fees, monthly payments and remaining balance at the end of the period you expect to keep the loan. APR is useful only if every lender calculates it on a genuinely comparable basis.

Run at least two periods—your realistic ownership horizon and the full 15 years. A low rate can lose its advantage if the arrangement fees are large.

 

[shareTheSignal]

Is R$6,328,000 the purchase price or the amount being borrowed? The loan-to-value tier can’t be assessed without the down payment, and comparing total interest is misleading if lenders are quoting different principal amounts or repayment profiles.

I’d also test the monthly payment against a less comfortable income month. The cheapest loan overall may still be the wrong one if it leaves no breathing room.

 

[field_porch]

You have identified the likely ownership period, but it is still unclear what happens if you stay longer. Plans can shift, so I would not let a short holding assumption decide the result.

First confirm whether the loan is fully repaid within 15 years or merely leaves the fixed rate then. Next compare the same principal and repayment structure at your expected exit and at the end of that period. If borrowing continues, include the remaining balance and a less favourable reset-rate case. Treat any earlier refinance as a separate possibility, not something required to keep the purchase affordable.

 

[yuki_north]

R$6,328,000 is the purchase price, not the principal, so nbakker is right that I need to normalize the quotes for the same loan amount and repayment profile. I’m also going back for a clearer answer on whether the 15 years covers full amortization or only the fixed segment.

My revised comparison will include fees, monthly payments, remaining balance and total cash paid under both no-refinance and earlier-refinance scenarios.

 

[blueprint.solid]

That approach should expose most of the differences. I’d put each lender in one table and insist that every figure uses the same principal, term and payment assumptions.

Keep portability and early repayment as separate questions: whether each is allowed, when it can happen, and what costs or conditions apply. Get those details in the lender’s written terms rather than treating the broker’s refinancing expectation as part of the quote.