Private banks begin to move to finance the property from the purchase on the plant, taking the first steps in a segment hitherto explored only by Caixa and Banco do Brasil in the Minha Casa, Minha Vida projects.

The Santander announced a pilot project with the builder MRV, focusing on income customers slightly above the government program, currently limited to R $ 7,000.

The Bradesco says studying market entry in 2019 , without setting date, while Itaú denies interest in this market.

Currently, when a consumer buys a property on the plant, he makes payments only to the construction company during the construction period, referring to a percentage of the project.

Financing passes to the bank only when the keys are delivered. The amount paid to the construction company works as a down payment and is deducted from what still needs to be financed.

Contracting real estate credit from the plant is a demand of builders, who try to avoid the risk of giving up the asset until the keys are delivered — the so-called cancellation . Until the financing, what the buyer and the construction company have is a promise to buy the good.

In the traditional financing scenario, there is still the risk of the buyer not having the credit approved by the bank at the time of financing. The reasons are diverse, such as a reduction in income, worsening credit risk, an increase in the value of the property that requires an additional payment or even a rise in interest rates, which alters the payment capacity.

With the credit analysis and contracting the financing from the beginning, these risks would be mitigated, reducing the cancellations that occur due to changes in the scenario.

Banks would, however, start taking risks they didn't have before, says Cássio Schmitt, Santander's credit products director.

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The main one is consumer default in the entire process.

“The risk of default increases because the bank enters [the operation] earlier. Today, this risk, until the completion of the work, is assumed by the developers”, he says.

In addition, a delay in payments to the construction company also constitutes a cancellation, and not a credit default, in the system.

There is another risk highlighted by the executive, that of the construction company facing difficulties in completing the work.

And, finally, traditional real estate financing has the property as collateral, which reduces the risk of defaults and loss of resources, should it occur. In this case, however, the property does not yet exist.

With the risk panorama outlined, the reasons that made banks resist structuring this product appear.

João da Rocha Lima Jr., a professor at USP, also emphasizes that the banks do not have enough knowledge to monitor the entire construction process of the work.

“Banks have always said they are unable to control delivery risk,” he says.

Without knowing details of contracts between banks and construction companies, he says that it is likely that there is insurance to guarantee that the property will be finalized if the construction company suffers from mishaps along the way - this would mitigate the risk of not having the property as collateral in the financing.

Market executives interviewed at the Real Estate Center of the Polytechnic School of USP said in a poll that they considered the probability of this product to take off is low.

Among the comments made are the fact that the system does not exist in developed countries and the difficulty of including the inflation of civil construction in the financing cost |4| and the necessary insurance.

Banks see, however, the advantage of retaining the customer from the beginning of the purchase and preventing it from being financed by the competitor.

“Financing work is an arm to reach the individual customer. And I get to him earlier,” says Schmitt, from Santander.

Lima Jr. states that banks are only interested in financing the construction of real estate projects because they need the properties to finance the final consumer, which is echoed by market executives.

“Financing work is the arm to reach the individual customer”, says Schmitt.

“When we finance construction, we focus the risk [on the bank]. When it finances at the plant, it spreads this risk and still retains the customer”, adds Daniela de Avelar Gonçalves, from Banco do Brasil.

In the real estate financing system from the purchase on the plant, the bank hired by the construction company has exclusivity to lend to the consumer.

The reason is the credit structure carried out and the way the money is transferred for the development of the work.

Therefore, the system prevents the bank that financed the work from losing the customer who is going to get the mortgage from the competitor after the delivery of the keys.

The structure is more attractive in an environment where banks have competed for customers who went through the economic crisis with income to take credit.

The line's growth will, however, depend on whether the pilot proves successful for the private sector, says Schmitt. And this will only be measured after 2019.