Mortgage Types Compared — Brazil 2026

Choosing the Right Mortgage in Brazil

Selecting the right mortgage type is one of the most important financial decisions in the buying process. The wrong choice can cost you tens of thousands over the life of the loan. This guide explains every mortgage type available in Brazil and helps you choose.

Types of Mortgages Available

Brazil has two main amortisation systems that fundamentally affect your total cost. SAC (Sistema de Amortização Constante) keeps principal payments constant — monthly payments start higher but decrease over time as interest on the reducing balance falls. Total cost is lower. PRICE (Tabela Price) keeps total monthly payments constant — easier to budget but you pay more total interest. Beyond amortisation, rates are linked to either the TR (Taxa Referencial) — a government-set reference rate that has been near zero — or IPCA (inflation index) — which adjusts with inflation, adding uncertainty. FGTS-linked loans through Caixa offer the lowest rates

Head-to-Head Comparison

SAC starts with higher payments but costs significantly less over the full term — often saving R$50,000-150,000 on a 20-year loan. PRICE has consistent payments that are easier to budget. TR-linked loans have been favourable as TR has remained near zero, while IPCA-linked loans carry inflation risk. Always choose SAC if you can afford the higher initial payments — the savings are substantial

Use our mortgage calculator to model different rate scenarios and see how each product type affects your monthly repayments and total interest paid.

Which Type Is Right for You?

Your ideal mortgage type depends on your risk tolerance, financial stability, and market outlook.

Choose fixed rate if you value payment certainty, are on a tight budget with little room for payment increases, or believe rates will rise. Choose variable rate if you can absorb payment increases, want the lowest possible initial cost, or believe rates will stay stable or fall.

Consider your loan term carefully. Shorter terms mean higher monthly payments but dramatically lower total interest. Our mortgage guide provides a detailed analysis of how term length affects total cost.

Expert Tips for Brazil

Always check Caixa first — their FGTS-linked rates can be 3-5% lower than commercial bank rates. Use FGTS every 2 years to reduce your outstanding balance. If rates drop, use portabilidade (mortgage portability) to switch banks for free — the original bank has 5 days to match the competing offer

Refinancing Between Types

If you chose the wrong type, or if market conditions change, refinancing is always an option. Read our refinancing guide for a step-by-step walkthrough of switching products or lenders.

Next Steps

Use our mortgage calculator to compare scenarios, read our first home buyer guide if you are a new buyer, or browse Brazil FAQs for quick answers.