Brazilian banks end “super-low” interest rate era for real estate loans

Brazil's large private banks have decided to increase their mortgage rates by between 0.5 and 1.0 percentage points, to nearly 8% per year.

RIO DE JANEIRO, BRAZIL - After a long season with banks racing to lower home loan interest rates, the cycle has now reversed. Financial institutions are raising the rates for new financing contracts, in anticipation of more difficult times for the Brazilian economy.

Brazil's largest private banks - Santander, Bradesco, and Itaú Unibanco - have decided to increase the rates charged on home loans by between 0.5 and 1.0 percentage points, to nearly 8% per year.

The average interest rate on mortgages stood at its lowest level in the sector's history, around 7% per year. Until a few years . . .

To read the full NEWS and much more, Subscribe to our Premium Membership Plan. Already Subscribed?