President Luiz Inácio Lula da Silva travels this Friday to São Paulo to announce the new model of real estate credit using savings resources. The measure could mean an injection of at least R$20 billion into the economy via credit, on the eve of the election. Lula chose to announce the program in the state governed by Tarcísio de Freitas (Republicanos-SP), considered by Palácio do Planalto to be the PT member’s main potential opponent in the 2026 presidential race.
The federal government and Tarcísio experienced a recent clash over the Chamber’s rejection of the Provisional Measure alternative to the IOF. Ministers such as Fernando Haddad (Finance) accused the governor of articulating the defeat, which he denied.
With the program, the government will increase the maximum value for financing real estate within the Housing Financial System (SFH), which will now provide for an interest rate limit of 12% per year. The limit, which is currently R$1.5 million, can reach R$2.25 million. The increase in the ceiling is a request from the construction sector to update the value, which has not changed since 2018. The measure will especially benefit people with income levels above R$12 thousand, who are currently not covered by the different levels of Minha Casa, Minha Vida.
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The model was developed by the Central Bank in partnership with the Ministry of Cities and the Ministry of Finance, in addition to Caixa. The BC’s idea is to change the logic of directing resources from savings to real estate credit. Banks had been asking for a reduction in reserve requirements since last year, but the BC had been resisting. The Selic rate is 15% per year and is the target of criticism from Lula government ministers.
The BC’s idea is to change the logic of directing resources from savings to real estate credit. For each real of housing financing granted, the bank would unlock access to the same volume of savings resources to be used freely for a period of five years.
After this period, new credit would have to be granted to renew the permission for free use. Technicians believe that the change should encourage an increase in the supply of real estate financing by banks with low interest rates, as the gains from more profitable operations can be used to reduce real estate rates.
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Testing of the new model should begin immediately. To make the change, all that is needed is approval from the National Monetary Council (CMN) and a resolution from the Central Bank. According to GLOBO, an extraordinary meeting of the CMN is scheduled for this week and BC technicians are already working on the standard to anticipate the effects on the compulsory requirements of the new model for this year.
