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Old 02-04-2008, 02:02 PM
michaelbush michaelbush is offline
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Yes I am really worried aboout flights! But that is another subject. I opened this thread after I was assured by one of the larger banks that their finance plan could be marketed to foreigners. On the face of it and working out the true rate, it looked like around 8-9% pa. over five years. However they failed to explain that the banks like to increase the repayments in line with the rate for Poupança accounts, and this would result in an increase of around 6% per year.(0.5% per month). In the final year the repayments would therefore be some 30% higher than the first payment! It appears here that Brasilians just accept it as normal, or perhaps they cannot do the sums. The bank manager tried to brush it off as just a small difference each month that foreigners could easily afford. He was also unaware of the mortgage system in Europe, and had no concept of calculating APR or AER for loans.
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