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Owning a property to call your own is a desire for many Brazilians, especially those who pay rent, and this dream is now within reach for more people. This is because the Federal Government introduced the updated version of the Minha Casa, Minha Vida housing program in March 2023. Therefore, the recent version includes new regulations and amounts, allowing loans with lower costs.
Minha Casa, Minha Vida aims to make it easier for low-income families in Brazil to obtain their own homes. The government provides subsidies for the program, enabling financing to be divided into several installments with extremely low interest rates. Additionally, the program also promotes job creation and economic growth in the construction sector.
Changes to Minha Casa, Minha Vida
The updated edition of Minha Casa, Minha Vida expanded the scope of financing. Thus, the program now allows the purchase of properties valued at up to R$ 350,000. However, this change applies only to families that qualify for tier 3 of the program, that is, those with a family income of up to R$ 8,000.
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The FGTS Board of Trustees made the decision and announced the changes, which came into effect on the 7th of this month. Before that, the maximum property value for this program bracket was R$ 264,000. In addition to increasing the value of the property to be financed, the program now also includes an increase in purchase subsidies.
Thus, the maximum Minha Casa, Minha Vida subsidy increased from R$ 47,500 to R$ 55,000. However, it is important to note that discounts on the program’s financing are subject to population, social, and income criteria. This measure aims to ensure that resources are allocated to those who truly need them.
Regarding the property value limit, other brackets of the housing program also received increases. Thus, brackets 1 and 2, for families with a monthly income of up to R$ 4,440, can now finance properties ranging from R$ 190,000 to R$ 264,000. This variation depends on the property’s location.
New interest rates for the housing program
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The Minha Casa, Minha Vida interest rates also changed with the recent changes. Therefore, see the table below:
| Brackets | Income Range | Interest rate - Quota holders: N and NE | Interest rate - Quota holders: S, SE and CO | Interest rate - Non-quota holders: N and NE | Interest rate - Non-quota holders: S, SE and CO |
| Tier 1 | Up to R$ 2,000.00 | 4,00% | 4,25% | 4,50% | 4,75% |
| From R$ 2,000.01 to R$ 2,640.00 | 4,25% | 4,50% | 4,75% | 5,00% | |
| Tier 2 | From R$ 2,640.01 to R$ 3,200.00 | 4,75% | 5,00% | 5,25% | 5,50% |
| From R$ 3,200.01 to R$ 3,800.00 | 5,50% | 5,50% | 6,00% | 6,00% | |
| From R$ 3,800.01 to R$ 4,400.00 | 6,50% | 6,50% | 7,00% | 7,00% | |
| Tier 3 | From R$ 4,400.01 to R$ 8,000.00 | 7,66% | 7,66% | 8,16% | 8,16% |
The abbreviations in the table, N, NE, S, SE and CO refer respectively to: North, Northeast, South, Southeast and Midwest. In addition, the interest rates of theMinha Casa, Minha Vidaare represented as a percentage per year.
