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Home loans extended to 35 years in Brazil
June 26, 2012
The president of Brazil took another step this month in an effort stimulate the economy by extending the deadline for payment of housing loans from 30 to 35 years. Interest rates also fell from 9% to 8.85% per year for properties up to $500,000. If the borrower is a client of the lending institution, the rate will fall to 7.8% annually.
On properties valued over $500,000, stakeholders will have benefits, though smaller. The aim is to encourage the middle class, which has shown little enthusiasm for home ownership due to high prices and rate of existing household debt. The government believes that, with longer terms for settlement of funds and lower interest rates, the value of benefits will fall, suiting the budget of many workers. The new rules went into effect June 11, 2012.
This updated was reported by Fenaci
, a union of real estate brokers which promotes technical training and the principle of professional ethics and fairness. Fenaci will join with Secovi-SP
to celebrate Real Estate Week
in São Paulo, September 12-19, 2012.