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Prospective buyers seeking to purchase property through the Minha Casa Minha Vida (MCMV) program have good news. Last Friday (7), Caixa Econômica Federal, the institution responsible for the loans, announced the program's new guidelines.
In essence, the Federal Government changed the housing program's rules to expand the population's access to properties. The main changes included:
- Increase in the maximum property value;
- Increase in assistance for property financing;
- Reduction in financing interest rates.
The federal administration expects the changes to encourage the country's construction industry. To clarify, the Lula government's goal is to deliver two million homes by 2026. In addition, stalled construction projects will also be gradually restarted.
To carry out these plans, the sector will need to increase its workforce. Therefore, the government expects job creation to grow. In fact, the construction industry created nearly 28,000 jobs in the country in May, according to data from the General Register of Employed and Unemployed Persons (Caged).
New Minha Casa Minha Vida guidelines
In summary, the increase in Minha Casa, Minha Vida assistance depends on a few factors. This means that the increase in the amount will vary for families across the country.
Below are the three criteria for determining the assistance:
- Location;
- Family income;
- Municipality population.
For example, families with the same income but in different states will receive different increases in assistance. Moreover, even if the populations of the municipalities are similar, the assistance may differ if they are in different regions.
In any case, the decision aims to make it easier for low-income people to purchase their own homes. Additionally, the measure also seeks to increase the number of homes delivered through Minha Casa, Minha Vida.
Read also: Check whether you were approved for Bolsa Família 2023. Learn how to check.
Learn about the income categories of Minha Casa, Minha Vida
In summary, the Minha Casa, Minha Vida housing program was relaunched in February this year after being dissolved during the government of former president Jair Bolsonaro, who established the Casa Verde e Amarela program.
The updated rules of the renewed housing program vary according to families' income and the region where they intend to finance a home.
There are three income categories for Minha Casa, Minha Vida users. However, the amounts vary depending on the region.
Check the income brackets for urban areas:
- Bracket 1: families with a monthly income of up to two minimum wages (R$ 2,640);
- Bracket 2: families with a monthly income from R$ 2,640.01 to R$ 4,400;
- Bracket 3: families with a monthly income from R$ 4,400.01 to R$ 8,000.
Check the income brackets for rural areas:
- Bracket 1: families with an annual gross income of up to R$ 31,680;
- Bracket 2: families with an annual gross income from R$ 31,680.01 to R$ 52,800;
- Bracket 3: families with an annual gross income from R$ 52,800.01 to R$ 96,000.
Government assistance and property prices
For families in brackets 1 and 2, government assistance increased from up to R$ 47,500 to up to R$ 55,000. This means that the government may spend R$ 10,000 more than before, providing greater support to families across the country.
In addition, property prices for income brackets 1 and 2 may range from R$ 190,000 to R$ 264,000, but only in municipalities with more than 100,000 inhabitants. Previously, the price limit was R$ 230,000.
On the other hand, the maximum value of the property to be financed varies according to the municipality's population. In summary, municipalities with up to 100,000 inhabitants will have properties with minimum values of R$ 145,000, up from the previous R$ 130,000.
For families in bracket 3, the maximum value of the property to be purchased rose from R$ 264,000 to R$ 350,000. This means that families interested in buying a property through Minha Casa, Minha Vida will have more alternatives to choose from.
Read also: Expanded benefits: FGTS home purchase program to receive an increase;
Government lowers interest rate
Brazilians who wish to use the balance in their Fundo de Garantia do Tempo de Serviço (FGTS) accounts to finance a property through the Minha Casa, Minha Vida program received another excellent piece of news last week.
The Federal Government lowered the interest rate, but this varied according to the region and the families' income. See the new interest rates below:
- Bracket 1 up to R$ 2,000: FGTS account holders pay a nominal interest rate of 4% per year (North and Northeast) and up to 4.25% per year (South, Southeast and Central-West). Non-account holders pay 4.5% p.a. (North and Northeast) and 4.75% p.a. (South, Southeast and Central-West);
- Tier 1 between R$ 2,000.01 and R$ 2,640: FGTS account holders pay interest of 4.25% p.a. (North and Northeast) and 4.50% p.a. (South, Southeast and Central-West). Non-account holders pay up to 4.75% p.a. (North and Northeast) and 5% p.a. (South, Southeast and Central-West);
- Tier 2 between R$ 2,640.01 and R$ 3,200: FGTS account holders pay interest of 4.75% p.a. (North and Northeast) and 5% p.a. (South, Southeast and Central-West). Non-holders pay up to 5.25% p.a. (North and Northeast) and 5.5% p.a. (South, Southeast and Central-West);
- Tier 2 between R$ 3,200.01 and R$ 3,800: FGTS account holders have interest of 5.5% p.a. throughout the country. Non-holders pay up to 6% p.a. throughout the country throughout the country;
- Tier 2 between R$ 3,800.01 and R$ 4,400: FGTS account holders pay an interest rate of 6.5% throughout the country. Non-holders pay up to 7% p.a. throughout the country throughout the country;
- Tier 3 between R$ 4,400.01 and R$ 8,000: FGTS account holders have interest of 7.66% p.a. throughout the country. Non-holders pay up to 8.16% p.a. throughout the country throughout the country.
