Brazil offers a favourable context for real estate investment
11 November 2019
Indeed, La Caixa Econômica Federal officially announced on Wednesday 30 October that interest rates on its home loans will be further reduced. This is the third reduction in interest rates on home loans in 2019 and the second in October.
The maximum interest rate for this type of financing will go from 9.5% to 8.5% per year, and the minimum rate from 7.5% to 6.75% per year, plus the Referential Tax. These new rates will be valid for new contracts, closed from 6 November. This reduction puts this new interest rate lower and therefore more advantageous than the one currently offered by the "Minha Casa, Minha Vida" homeownership program, according to Pedro Guimarães, president of the Caixa.
The decrease in La Caixa's interest rates follows the tendency achieved in recent weeks by competitors Itaú, Bradesco and Banco do Brasil, who have also lowered their rates. The president of the financial institution affirmed his optimism regarding home ownership for Brazilians by saying that these new rates will generate more demand and calls for attention to their future evolution.
If banks are increasingly facilitating access to property for Brazilians, the current context is therefore appropriate for real estate investment in Rio de Janeiro and Brazil in general.
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