FGTS evaluates allowing pause in real estate financing contracts for defaulters – 07/21/2023 – Market

The Board of Trustees of the FGTS (Guarantee Fund for Length of Service) must approve at its next meeting the possibility of breaks in real estate financing contracts with the fund.

The borrower in default with the bank that carried out the operation may negotiate with the financial institution an interruption in payments. The amount that would be paid is added to the outstanding balance with interest.

The measure can be taken for a limited period and will depend on the FGTS budget, which will grant the break to banks that allow the same for defaulting borrowers. The novelty will allow a breather in a moment of high interest.

The Board of Trustees meets next week in Brasilia. In addition to the break, the group must also decide on the distribution of the FGTS profit, which can reach 99% of the total.

Another item on the agenda is supplementing the budget for financing in Minha Casa Minha Vida, which, if not reviewed, could run out by September in three regions of the country.

The meeting should also increase by R$ 4.65 billion the resources destined to finance real estate for the middle class, in the so-called pro-quota line. With this, the total amount will reach R$ 11.35 billion

The line offers an interest rate of 8.66% per year plus the Referential Rate (TR) for those who have an account in the fund. The maximum price of the property to be financed is R$ 1.5 million.

The measure comes at a time when the middle class is struggling to finance a property, as shown by Sheet.

On the one hand, high interest rates make loans more expensive. On the other hand, it reduces the source of resources for banks to invest in the sector.

The problem has already caught the attention of President Lula (PT), who has publicly asked for measures for this income statement in Minha Casa Minha Vida.

The government is considering raising the maximum value of the residence to meet the president’s request so that families with a monthly income of R$ 10,000 or R$ 12,000 can also have access to the housing program. Currently, the income limit is R$ 8 thousand per month.

If this is done, the ceiling of the property financed in the program can rise to R$ 500 thousand.