Overview

• A Ministry of Cities ordinance published on October 9 opened loans of R$ 5,000 to R$ 30,000 for home repairs, repayable in 24 to 60 months with installments capped at 25% of family income.
• Interest rates are tiered at 1.17% per month for families earning up to R$ 3,200 and 1.95% per month for those up to R$ 9,600, with market rates applying above that threshold.
• Funds can cover materials, labor, project design and technical oversight, with priority to the lowest-income band and smaller loans in urban capitals or cities above 300,000 inhabitants, and borrowers must document completed works.
• The line is financed by the Pré-Sal Social Fund and backed for the lowest-income borrowers by FGHab, with government estimates of up to R$ 30 billion in lending and about R$ 7.3 billion in subsidies through 2026.
• Separately, the government plans to announce in São Paulo a mortgage model reported to lift the SFH loan ceiling from R$ 1.5 million to as much as R$ 2.25 million and cap rates at 12% a year by freeing poupança resources when banks issue new housing loans, subject to CMN and Central Bank rules and an initial test phase.