Caixa Econômica Federal has extended the maximum term for financing properties under the Casa Verde Amarela Program from 30 years to 35 years. The change goes into effect for the acquisition of new contracts from this Thursday (1st).
The announcement was made by the vice president of housing, Henriete Bernabé, during a live broadcast on Caixa’s official YouTube channel.
According to Henriete, the extension of the financing term will allow a reduction of up to 7.5% in the value of the property payment. Another possibility is to buy a property of greater value.
The MP (Provisional Measure) allowing a five-year extension in the purchase of property financed by the program was approved by the Senate in July and sanctioned by President Jair Bolsonaro (PL) at the end of August.
other measures
In July, the FGTS Board of Trustees had already approved the increase in gross monthly family income limits to be able to finance a property through Casa Verde e Amarela.
Sub-band 1, with income between R$2,400 and R$2,600, had the ceiling increased to R$3,000. The lower range of up to R$2,400 was maintained.
Above these levels, the council approved the increase in the values of the intermediate group -which rose from R$2,600 to R$4,000 to R$3,000 to R$4,400– and of the higher income group, which rose from R$4,000 to R$4,000. 7,000 to R$4,400 to R$8,000.
The possibility of financing 1 bedroom properties was also approved. According to the housing vice president at Caixa, until then the program allowed the financing of new properties from 2 bedrooms.
The council also authorized the reduction of interest for the Pro-Cotista program, aimed at those who do not qualify for the Casa Verde e Amarela.
For properties valued at up to R$350,000, interest will drop to 7.66% per year. For properties above this value and up to R$ 1.5 million, the rate will be 8.16% per year. The Pró-Cotista program allows financing between 5 and 20 years and has no family income limit.
Possibility of reducing the installment
According to Caixa’s vice-president of housing, the changes will allow a reduction in the value of the installments of real estate financing and the possibility of acquiring property with greater added value.
To exemplify how the changes apply in practice, she used as an example the financing of a property for a family with a monthly income of R$2,700 and a subsidy of R$12,400.
“In the financing of up to R$ 97 thousand with the old interest rate of 6%, the value of the installment with a term of 30 years would be R$ 810. With the reduction of the interest rate [para 5,25%] and the expansion and the possibility of extending it to 35 years, the installment is now R$ 710”.
With the increase in the payment term, it will also be possible to acquire property with a higher value. In the case of a family with a monthly income of BRL 2,700, which could finance a property worth BRL 97,000 in 30 years, by extending the term to 35 years, the amount released for financing would be BRL 110,000. .
Caixa expects, with the implementation of the new measures, an increase in the number of people interested in financing their own home. The expectation is for an increase of up to 20% in relation to the volume contracted in 2021.
From January to July 2022, R$ 34.8 billion in credit were contracted to finance Casa Verde Amarela. Of this amount, 99.9% of the financing was provided by Caixa.
In the same period, the bank reached the mark of R$ 90.5 billion in housing contracts.
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