Overview

• President Luiz Inácio Lula da Silva will unveil the plan in São Paulo on Oct. 10, with immediate testing that releases 5 percentage points of poupança compulsório and could unlock at least R$20 billion this year, potentially up to R$37.5 billion depending on bank uptake.
• The change still requires clearance from the Conselho Monetário Nacional and a Central Bank rule, with an extraordinary CMN meeting reported for this week to consider the measure.
• For each real of new housing finance, banks gain five-year free-use access to an equal amount of savings funds, with 80% channeled to the SFH and 20% to the SFI.
• The testing phase runs through the end of 2026 with full rollout planned for 2027, and participation will depend on lender adoption, including by Caixa and private banks.
• Lula will also present a home-repair credit program structured in three income bands with subsidized monthly rates of 1.17% for the lowest band and 1.95% for the next tier.