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Intelligent Amortization Technique Can Cut Up to 111 Installments from Your Financing and Save Over R$ 200 Thousand in Interest.
Many Brazilians believe that once they sign a real estate financing contract, they just have to pay all the installments until the end. However, according to Ricardo Floriano, founder of CSM and real estate credit specialist, there is a simple real estate amortization technique that, if applied just once a year, can eliminate dozens of installments from the contract and drastically reduce the interest paid.
This method works both in the SAC Table and in the Price Table and can be adopted at any stage of the financing.
For experts, this is a practical way to accelerate the settlement of the property and save significant resources in the long term.
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How the Simple Real Estate Amortization Technique Works
According to Ricardo Floriano, the logic is quite simple. The consumer should set aside, throughout the year, the equivalent of 25% of the monthly installment amount.
This amount can be accumulated month by month or supplemented with extra resources, such as 13th salary, bonuses, or tax refunds.
In addition, it is recommended to add about 1% of the remaining balance (related to the TR correction).
At the end of the period, the amount is used to amortize the remaining balance, reducing the term of the contract and eliminating several installments at once.
In practice, the consumer anticipates future payments and breaks the cycle of interest on interest.
Practical Example of Savings
A financing of R$ 210 thousand over 35 years, with an interest rate of 12% per year, generates an initial installment of approximately R$ 2,544 (SAC) or R$ 2,082 (Price). Applying the simple real estate amortization technique, the result is surprising:
In the SAC Table, saving about R$ 9,700 per year allows eliminating 31 installments, with savings of approximately R$ 77 thousand in interest.
In the Price Table, accumulating R$ 8,300 per year can eliminate 111 installments, reducing the total cost by over R$ 216 thousand in interest.
According to Floriano, the difference occurs because in the Price model the start of the contract concentrates high interest, making early amortization even more advantageous.
Why the Technique is More Efficient in the Price Table
Although it works in both models, the simple real estate amortization technique shows more expressive results in the Price Table.
This happens because, at the beginning of the contract, almost the entire amount of the installment is allocated to paying interest, without actually reducing the remaining balance.
By amortizing early, the consumer quickly reduces this balance, saving thousands of reais.
In the SAC Table, the impact is also relevant, as the constant amortization already favors the reduction of the balance.
However, even in this model, applying the technique can mean years less of financing.
Discipline and Organization: The Pillars of the Method
The central point is financial discipline. According to Ricardo Floriano, it is not necessary to commit large amounts monthly, but rather to be consistent throughout the year.
Setting aside part of the income, planning the use of extra resources, and keeping the focus on the amortization goal are actions that make all the difference.
This organization transforms a contract that could last decades into a much shorter debt, in addition to providing financial relief in the long run.
The simple real estate amortization technique proves that financial knowledge can completely transform the consumer’s relationship with their financing.
With a planning that requires less than 5% of the remaining balance per year, it is possible to eliminate dozens of installments and save hundreds of thousands of reais in interest.
And you? Have you applied any amortization technique to your financing or do you plan to start using this strategy? Do you think banks should promote these options more?
Leave your opinion in the comments — we want to hear real experiences from those dealing with financing daily.
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