By Brazil Stock Guide – Brazil will inject R$40 billion ($7.2 billion) into a new housing credit line through state lender Caixa Econômica Federal, starting Nov. 3, to fund home renovations and expansions across the country. The program, called Reforma Casa Brasil – Minha Casa, Minha Vida, is expected to benefit 1.5 million families, the federal government said in a statement.
Of the total, R$30 billion will come from the Social Fund to support families earning up to R$9,600 per month. Another R$10 billion will be offered directly by Caixa through the SBPE savings and loan system, targeting higher-income households. The initiative was developed in partnership with the Ministry of Cities and the Ministry of Finance.
President Luiz Inácio Lula da Silva emphasized that social policies must prioritize lower-income Brazilians. “Although we govern for everyone, those most in need must come first in public policies and decisions,” Lula said at the launch event in Brasília. “Now there will be credit, and Caixa will be the provider of this credit.”
Caixa CEO Carlos Vieira said the program complements existing real estate credit lines. “We are committed to facilitating access to credit so that Brazilian families can improve their housing conditions quickly and safely,” Vieira said.
Housing Minister Jader Filho argued the program will help reduce the nation’s housing deficit. “We now have a complete policy to tackle the housing gap. With today’s announcement, Brazil will advance further in closing the deficit,” he said.
Under the scheme, families earning up to R$3,200 a month will qualify for credit of up to R$30,000, at an interest rate of 1.17% per month and repayment terms of 24 to 60 months. Those earning between R$3,200 and R$9,600 will pay 1.95% monthly interest under the same conditions. Families above that threshold will be eligible for Caixa’s SBPE-based loans.
The funds may be used for structural repairs, roofing, flooring, electrical and plumbing systems, accessibility improvements and home expansions. Eligible households must already own a property in urban areas, including state capitals and cities with populations above 300,000.
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