Brazilians enjoy homeownership stimulus
May 18, 2012
Brazilian would-be homeowners are enjoying a month of opportunity and stimulus. In its 8th edition, Caixa Econômica Federal is holding Feirão "Housing in a Box" whereby the bank will offer more than 430,000 new and secondary market homes with easy credit and reduced interest rates.
The credit lines for Feirão cater to all ranges of family income, with payment of up to 30 years. Interest rates vary within the Housing Finance System (SFH) of 4.6% to 9% per year for all funding arrangements, including up to 100% of property value. Reduced rates are available to customers, regardless of their relationship with Caixa, although the reduction may be greater for those who choose to become clients.
According to the vice president for Government and Housing, Urban Joseph Duarte, "the great advantage of Feirão is the possibility of going through the process of acquiring the property in one place, where all actors in the chain of housing, such as builders, brokers, notaries and technicians are all together, responsible for analyzing and releasing the funds, which saves time and money for families."
Flavio Prando, vice president of the Housing Union Secovi-SP
, agrees and adds: "financing terms offered by Caixa are very attractive. Now, with greater reductions in interest rates, more families have access to mortgages." Secovi-SP believes that this movement of cash to reduce the interest on the mortgage will stimulate healthy competition among private banks which will present new products. "It's a virtuous cycle that occurred in mid-2005," recalls Prando.
Feirão will be offered in 13 cities beginning early May; moving around the country until June 10. A schedule is available on the Fenaci news page
. The last edition of Feirão recorded more than 450,000 visitors, with financial transactions exceeding $10 billion in deals signed and forwarded.