From November 1st, real estate lines of credit that use savings resources will change the rules
Caixa Econômica Federal is recalibrating its housing finance rules in a bid to avoid an immediate rise in interest rates. The scenario reflects the scarcity of savings account resources, as well as the tighter conditions for issuing real estate letters of credit (LCI) – these are the two main sources of resources for providing financing. Therefore, the short-term strategy focuses on tightening credit access conditions for real estate buyers. If there is an improvement in fundraising next year, this policy may be reviewed.
Real estate lines of credit that use savings resources will change their rules from November 1, Coluna found. According to a SAC table, in which the installments decay over time, the required deposit will increase from 20% to 30% of the value of the property. In the price system, in which the installments are fixed, the variation will be from 30% to 50% of the value of the good. In practice, anyone who wants to finance a property with Caixa will have to pay a larger deposit, at least at the end of the year.
The measure is an attempt by the bank to avoid an increase in interest charged to customers in a scenario of funding restrictions. Afterwards, Caixa could relax the rules again, depending on the bank’s ability to maintain LCI issuance, which is exactly what management is looking for now. The expectation is that, early next year, depending on market conditions, the rule for the SAC table may revert to the previous one. In Price, where the bank takes longer to receive the full amount of the loan back, it is more difficult for the previous rule to return to the previous parameters.
Increasing demand
Internally, the measures are seen as a way to maintain the growth rate of housing credit this year without having to raise interest rates. At the start of 2024, Caixa estimated that real estate financing would grow by 12%. As of September, however, it had already granted 175 billion reais, an increase of 28.6% compared to the same period last year. Real estate financing amounted to 627 thousand. Caixa’s real estate mortgage portfolio has already surpassed the R$800 billion mark.
The pace is accelerating thanks to lines with FGTS resources, but savings have also contributed to the acceleration. With other banks closed in the face of high interest rates, customers “run” to Caixa, which has taken measures to finance as many people as possible with the lowest interest rate it can offer.
Another factor that works against the real estate credit equation is the speed of amortization of the portfolio, which increases from 10 to 12 years on average. With double-digit Selic, customers prefer to invest money in CDI-linked bonds rather than advance mortgage payments, where interest rates are lower.
When contacted, Caixa reported that it is constantly studying measures aimed at expanding the excess supply of demand for real estate financing, including participating in discussions with the market and the government, with the aim of seeking new solutions that allow the expansion of real estate credit in the country.
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Source: Terra
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