Overview

• President Lula is slated to announce the policy in São Paulo on Friday, with the model developed by the Central Bank alongside the Cities and Finance ministries and Caixa.
• Under the BC mechanism, each real of new mortgage lending lets a bank unlock an equal amount of savings-derived funds for free use for five years, with renewal tied to fresh credit.
• The trial would allow use of 5 percentage points of the poupança compulsório, lowering it from 20% to 15% for participating banks through 2026 before a full rollout targeted for 2027.
• Released resources must keep 80% directed to SFH loans under regulated terms, with the remainder eligible for SFI operations that do not have a rate cap.
• Near-term liquidity is estimated at at least R$20 billion and up to R$37.5 billion depending on bank uptake, with the government citing potential housing-credit expansion of up to R$150 billion by 2026 as mortgage rates hover near 19%–22% for middle-income borrowers.