President Lula Launches Reforma Casa Brasil to Boost Home Renovation Credit for Brazilian Families
President Lula launches Reforma Casa Brasil, offering R$ 40 billion to facilitate affordable home renovation credit, targeting vulnerable urban families and stimulating the housing and construction sectors.
- • Launch of Reforma Casa Brasil program on November 20, 2023, by President Lula.
- • Total credit allocation of R$ 40 billion for home renovations and improvements.
- • Financing starts at R$ 5,000 with repayment up to 60 months and monthly payments capped at 25% of family income.
- • Interest rates vary between 1.17% and 1.95% based on income brackets.
- • Program targets urban families with incomes up to R$ 9,600 and fosters social inclusion and economic stimulus.
Key details
On November 20, 2023, President Luiz Inácio Lula da Silva officially launched the Reforma Casa Brasil program, a major initiative designed to facilitate access to credit for Brazilians seeking to renovate, expand, or adapt their homes. Developed collaboratively by Brazil's Ministries of Cities and Finance alongside Caixa Econômica Federal, the program aims to guarantee dignified housing for families and stimulate social inclusion and local economies.
The program allocates R$ 40 billion in total housing credit: R$ 30 billion from the Social Fund for families with monthly incomes up to R$ 9,600 and an additional R$ 10 billion through the Brazilian Savings and Loan System (SBPE) targeting families with higher incomes. Financing begins at R$ 5,000, with repayment terms extending up to 60 months (5 years), and monthly payments are capped at 25% of the family’s income to ensure affordability.
Interest rates are tiered based on income brackets, starting at 1.17% per month for the lowest-income families and rising to 1.95% for higher-income qualifying groups. The program targets urban residents of large cities, initially focusing on municipalities with more than 300,000 inhabitants, addressing urgent needs such as roof repairs, electrical and plumbing upgrades, and accessibility improvements.
President Lula emphasized the program’s focus on the "invisible" populations often overlooked by the market, stating, “The market does not like to earn little." He highlighted that many Brazilians do not want or cannot purchase new homes but require financial support to improve their existing homes, which also helps local businesses and economies. Finance Minister Fernando Haddad described the initiative as a sustainable effort aligned with the United Nations’ Sustainable Development Goals, intended to reduce Brazil’s housing deficit and improve living standards.
The initiative is expected to generate approximately 1.5 million contracts, fostering job creation and income generation in the construction sector. It abides by strict guidelines limiting families to one active loan at a time to maintain responsible credit practices.
Reforma Casa Brasil complements recent reforms in the Brazilian housing credit system, improving the efficiency and sustainability of home financing and reflecting a renewed governmental commitment to social welfare and urban development.