Brazil Targets 1 Million Minha Casa Minha Vida Contracts in 2026, Keeps Subsidized Rates Unchanged

Overview

• Minister Jader Filho said the government plans to sign 1 million new Minha Casa Minha Vida contracts in 2026 and maintain the pace in 2027, aiming for about 3 million by the end of the current mandate.
• The government does not plan to lower program interest rates; in Faixa 1 they stand at 4% per year in the North and Northeast and 4.25% in other regions.
• He said FGTS, the program’s main funding source, has the capacity to support contracting roughly 1 million homes per year.
• After expanding eligibility to families earning up to about R$12,000 a month, the program now accounts for roughly 85% of new housing launches, according to the minister.
• The backdrop remains tight with the Selic at 15% and bank lending rates and delinquencies higher in 2025, while the central bank has freed compulsory deposits to spur mortgage credit and has signaled possible rate cuts starting in March.