Overview

• An official ordinance published Oct. 9 creates home-improvement loans of R$5,000 to R$30,000 with 24 to 60 months to repay and installments limited to 25% of family income.
• Monthly interest is 1.17% for households earning up to R$3,200 and 1.95% for those up to R$9,600, with market rates applied above that income threshold.
• Financing will draw on the Fundo Social do Pré‑Sal, the FGHab will cover part of the risk for the lowest income band, and the public subsidy is estimated at R$7.3 billion.
• Eligibility covers residential or mixed‑use properties in urban areas of state capitals or cities over 300,000 residents or in comparable IBGE clusters, and spending must be proved for materials, labor, design and technical oversight.
• The government projects up to R$30 billion in loans through 2026, federal banks including Caixa will operate the line with priority to Faixa 1 and smaller tickets, and officials are expected to outline SBPE-related purchase‑credit changes for R$12k–R$20k earners on Oct. 10 subject to CMN approval.