Despite the gradual advancement of real estate secured credit (CGI) in Brazil, the product still faces cultural, operational and knowledge barriers that limit its use on a larger scale. The assessment is from the Brazilian Association of Real Estate Credit and Savings Entities (Abecip), presented by the entity’s president, Priscilla Ciolli, during what took place this Tuesday, 27th, in São Paulo.
In 2025, the total stock of the product maintained its growth trajectory, expanding 22% compared to 2024, to R$29.9 billion, with an average loan value of R$264 thousand, an average LTV (indicator that shows the proportion of the loan in relation to the value of the guarantee) of 34% and an average term of 13 years.
The number of new CGI concessions, however, fell 14.4% last year compared to the previous year, to R$11.48 billion – reversing the 58.5% acceleration seen in 2024 versus 2023.
CGI remains a financing alternative with a lower cost than lines without real guarantees, and can be used for different purposes, such as investment in your own business, renovations, debt consolidation and emergency needs.
However, in Priscilla Ciolli’s assessment, one of the main obstacles to its popularization is the behavior of the Brazilian consumer, historically averse to using property as collateral in credit operations. “There is a very strong culture of preserving this heritage. Brazilians prefer to take out a loan with slightly higher interest rates versus putting their home at risk,” he said.
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Financial education and operational complexity
Another factor highlighted by Abecip is the complexity of the process compared to traditional credit. Unlike personal loans, which can be released quickly, CGI requires additional steps, such as document analysis, property evaluation and registration with a notary, which can alienate consumers in immediate need of resources.
According to Ciolli, this set of factors reinforces the need for a greater educational effort on the part of the financial market. “It’s a product that makes economic sense, but is still little known. The market needs to learn how to use CGI and the consumer needs to better understand its advantages”, he stated.
Abecip assesses that the new approach represented an important advance by simplifying and providing greater security to the processes for setting up and executing real estate guarantees. The new legislation even opened space for operations that serve as a basis for new credit concessions.
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However, regulatory changes alone are not enough to unlock the market. “It’s almost impossible for this product not to grow, because it has a lower interest rate, a longer term and higher approved values. It’s a matter of us building this movement in the market”, explained the president of Abecip.
