Brazil announces a reduction in interest rates for the purchase of a real estate property
26 August 2019
Brazil announces a reduction in interest rates for the purchase of a real estate property. On August 20, Caixa Federal officially announced a new real estate credit facility to attract buyers. Interest rates on this type of financing will now be lower, adjusted by the CPIA (the official inflation index in Brazil) compared to the traditional model, for both new and old properties. Low interest rates and a low real estate price, there is no doubt about it, this is the best time to invest in a real estate purchase in Brazil!
These new rates are applicable for new contracts and have been in effect since Monday, August 26. The President of La Caixa, Pedro Guimaraes said that real estate credit adjusted for inflation will be an alternative to the existing line it adopts, such as the Referential Tax.
With this new index, banks will therefore be able to sell real estate loan portfolios, anticipating the receipt of receivables, which can be lent again.
Today, Caixa holds more than 70% of the country's real estate credit, with a rate of 8.5% to 9.75% per year, added to the Referential Tax, on the main credit lines.
From now on, interest will vary from 2.95% to 4.95% per year, plus the CPIA. The changes apply to the Housing Financial System for dwellings up to R$1.5 million and the Real Estate Financial System for those above R$1.5 million.
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