Complete Mortgage Guide — Brazil

How Mortgages Work in Brazil

The Selic rate — Brazil’s benchmark interest rate set by the Central Bank’s monetary policy committee (COPOM) — is the primary driver of mortgage rates. Brazilian mortgage rates historically run significantly higher than in developed markets, typically 8-12% for conventional bank loans, though subsidised programmes offer much lower rates

Use our mortgage calculator to see how different rates and terms affect your monthly repayments.

Types of Mortgages Available

The main mortgage types are the SFH (Sistema Financeiro de Habitação) for properties up to a regulated value, using the TR (Taxa Referencial) or IPCA (inflation index) as the rate benchmark, and the SFI (Sistema de Financiamento Imobiliário) for higher-value properties with market-rate pricing. Fixed-rate products are available but less common than inflation-linked or TR-linked variable products. The SAC (Sistema de Amortização Constante) amortisation method is most popular, where principal repayments are constant and total payments decrease over time

Read our mortgage types comparison for a detailed side-by-side analysis of each product.

How Much Can You Borrow?

Lenders enforce a strict 30% debt-to-income cap — your total monthly mortgage payment including insurance cannot exceed 30% of your gross monthly family income. Both partners’ incomes can be combined. Pre-approval involves a credit score check through Serasa and SPC

The maximum loan-to-value in Brazil is Typically 70-80% through conventional banks. Caixa Econômica Federal offers up to 80% for FGTS-eligible buyers. The remaining deposit must come from savings or FGTS funds. Loan terms extend up to Terms of up to 35 years are available, with 20-30 years being most common. Monthly payments cannot exceed 30% of gross family income.

The Application Process

Start by checking your eligibility with Caixa for FGTS-subsidised rates. You need CPF (tax ID), RG (identity), income proof (holerite for employed, IRPF declaration for self-employed), FGTS statement, and marriage certificate if applicable. The bank conducts a property appraisal. Approval takes 2-6 weeks depending on the lender. The contract is registered at the Cartório de Registro de Imóveis

Costs and Fees

Registration costs at the Cartório (notary) typically run 1-2% of the property value. Banks charge a processing fee (tarifa de avaliação) of R$2,000-3,000. Mandatory insurance includes MIP (death and disability) and DFI (property damage), which add to the monthly payment

What Makes Brazil’s Mortgage Market Unique

Brazil’s FGTS (Fundo de Garantia do Tempo de Serviço) system is unique — employers deposit 8% of each worker’s salary into an FGTS account. This fund can be used for the property deposit, to reduce monthly payments, or to amortise the outstanding balance every 2 years. Workers with 3+ years of FGTS contributions and who have not owned property in the past 3 years can access subsidised rates through the Minha Casa Minha Vida programme

Refinancing Your Mortgage

Portabilidade de crédito (mortgage portability) allows you to transfer your mortgage to a new bank offering a better rate. The original bank has 5 business days to match the competing offer. The process is free of charge and the new bank handles the transfer. This has become an effective tool since 2019 as competition between lenders has increased

Read our refinancing guide for a step-by-step walkthrough.

Government Schemes and Support

Minha Casa Minha Vida provides subsidised interest rates as low as 4-5% for families earning up to R$8,000/month, compared to market rates of 9-12%. Income bands determine the interest rate and maximum property value. FGTS Pro-Cotista offers below-market rates for FGTS contributors who do not qualify for Minha Casa Minha Vida

Check our government grants guide for the latest programmes and eligibility details.

Tips for Getting the Best Deal

Always check Caixa first — their FGTS-linked rates are typically 3-5% lower than market rates. Use FGTS savings strategically: you can use them every 2 years to reduce your outstanding balance. Compare the SAC vs PRICE amortisation systems — SAC has higher initial payments but costs less overall. When rates fall, use portabilidade to switch banks for free

Next Steps

Use our mortgage calculator to model different scenarios, read our property buying guide for the full purchase process, or browse Brazil FAQs for quick answers.