Consórcio or mortgage: which one pays off?
Enter the terms of the consortium and the financing rate to compare the installment, the total paid and the consortium's equivalent rate. Nothing you type leaves your browser.
Consórcio vs. mortgage calculator
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Fee and fund amounts are examples. The consórcio only releases the property once you are awarded.
Frequently asked questions
Is a consórcio cheaper than a mortgage?
A consórcio (group purchasing plan) charges no interest, but it does charge an administration fee and a reserve fund on the credit letter. In many cases the total paid is lower than with a mortgage, but you only buy the property when you are awarded it, by draw or bid, and that can take a while.
What is the consórcio's equivalent rate?
This is the yearly interest rate that would produce the same installment if you received the full credit amount in the first month. It lets you compare the cost of the consórcio with the mortgage rate, assuming you are drawn right away.
Do this calculator’s rates apply to my consortium?
No: the administration fee, reserve fund and insurance are examples. Use the figures in the contract the administrator sends you.
What if I’m not awarded right away?
You keep paying installments without having the property, and the calculator accounts for neither that waiting time nor the rent you pay in the meantime. This is the main practical difference compared with a mortgage.