When it comes to buying a home, you have two popular options: financing or consortium. Let's simplify the differences between them to help you decide which is best for you.

Financing: The conventional way

In financing, you borrow money from a bank or financial institution to buy the home you want and pay the loan in monthly installments over the years. This option offers flexibility, allowing you to choose the loan amount, payment term and terms that best suit your financial needs. However, there is interest to be paid and you will need to meet the bank's credit requirements.

Consortium: A collective approach

In a consortium, a group of people come together and contribute monthly payments to a common fund. Each month, one member of the group is selected and receives the amount necessary to buy the house. A great advantage of the consortium is the absence of interest, making it a more accessible option for those who do not have a significant initial down payment. However, it may take longer for you to be selected, as it depends on monthly draws.

What is the best choice?

The decision between financing and consortium depends on your personal preferences and financial needs. If you value speed and can handle the interest, financing may be the best option for you. On the other hand, if you prefer to avoid interest and are willing to wait, a consortium may be more appropriate.

Execut is here to help you with whatever choice you make. Our team of experts is ready to guide you and make your home buying process easier and smoother. Schedule a visit to Execut today and take the first step towards realizing your dream of owning your own home!