Government increases the value of Minha Casa Minha Vida and reduces interest on real estate

The Board of Trustees of the Severance Indemnity Fund (CCFGTS) decided, this Tuesday (20), to increase the subsidy for properties of the Minha Casa Minha Vida (MCMV) program and reduce the interest rate for low-income families in bands 1 and 2 of the program.

The council also decided to adjust the value of properties that can be financed by the program. The subsidy for low-income families with a monthly income of up to R$2,640 (tier 1) and up to R$4,400 (tier 2), increased from R$47,000 to up to R$55,000, according to Agência Brasil.

With the change, the property ceiling for bands 1 and 2 of the program will be R$ 264,000 for municipalities with a population of 750,000 inhabitants or more; BRL 250,000 for cities with a population between 300,000 and 750,000 inhabitants; BRL 230,000 for those with a population of between 100,000 and 300,000 inhabitants; and R$ 200,000 for cities with a population of less than 100,000 inhabitants.

In addition to the increase in the subsidy, the council also increased the maximum value of the property that can be purchased by families with income ranging between R$ 4,400 and R$ 8,000 (range 3): it went from R$ 264,000 to up to R$ 350 thousand in all states.

It is estimated that the measure will bring about an increase of 57,000 new hires in track 3, of which 40,000 in 2023. In addition, the council estimates a 12% growth in hires, with around 330,000 units for families with an income of up to BRL 3.3 thousand. In 2023, the FGTS budget for subsidies is BRL 9.5 billion.

The council also revised the interest charged to families with monthly income of up to R$2,000. Interest increased from 4.25% per year to 4% in the North and Northeast regions. For the South, Southeast and Midwest regions, the rate dropped from 4.5% to 4.25% per year.