Financing for real estate using FGTS (Brazilian employee severance fund) has a new limit: R$ 1,5 million.
The National Monetary Council (CMN) has increased the maximum value of housing units that can be acquired through the Housing Finance System (SFH), which charges lower interest rates than other market financing, to R$ 1,5 million; the new limit will be effective from next Monday, the 20th.
Wellton Max - Reporter from Agência Brasil
By the end of the year, borrowers will be able to finance more expensive properties using funds from the Severance Indemnity Fund (FGTS). The National Monetary Council (CMN) has increased the maximum value of housing units that can be acquired through the Housing Finance System (SFH), which charges lower interest rates than other market financing options, to R$ 1,5 million.
The new limit will apply to financing for new residential properties contracted between next Monday (20) and December 31. Granted with resources from the FGTS and savings, SFH financing charges interest of up to 12% per year. Above these values, the rules of the Real Estate Financing System (SFI) apply, with higher rates freely defined by the market.
This was the second increase in the limit in the last three months. In November, the CMN (National Monetary Council) had readjusted the financing ceiling from R$ 650 to R$ 800 in most of the country, and from R$ 750 to R$ 950 in the Federal District, Minas Gerais, Rio de Janeiro, and São Paulo.
The new ceiling of R$ 1,5 million will apply to all regions of the country. In a statement, the Ministry of Planning informed that the measure will expand borrowers' access to cheaper financing.
"With the change, borrowers will have access not only to the interest rates applicable to the SFH (Brazilian Housing Finance System), which are generally lower than those linked to other types of real estate transactions, but also to the possibility of using funds from their FGTS (Brazilian Severance Indemnity Fund) accounts to pay part of the installments or to amortize the financing, provided that the other legal and regulatory requirements governing the fund are observed," the statement highlighted.
Earlier, the Ministry of Finance had confirmed that the limit would be increased. Yesterday (15) evening, Minister Henrique Meirelles had stated, in an interview with GloboNews channel, that the measure would benefit the middle class.
The new ceiling will be valid until the end of the year, but may be renewed by the CMN at its December meeting.