CET: the total effective cost of a Brazilian loan

What the rule covers

Resolução 4.881 applies to credit operations with individuals and with micro and small companies (article 1). Payotte read no exclusion of home loans: the only exclusions in article 9 are foreign-funds on-lending and rural credit. It replaced Resolução 3.517/2007 from 1 February 2021.

Article 2 describes the CET as a rate that represents, “de forma consolidada”, the charges and expenses of the operation. Article 3 requires the calculation to cover the credit amount and the amounts charged to the customer, considering amortizations, interest, fees (tarifas), taxes, insurance and other expenses linked to the operation, including third-party services the lender requires the borrower to pay, even when those expenses are not added to the loan amount. Article 4 sets the calculation as a formula, defined on the cash flows of the operation (the amount received and the payments over the term).

What it does not include, and what you must still see

Under article 5, variable benchmarks such as floating rates or price indexes are not considered in the CET calculation, but they must be shown in the statement. For a home loan with a balance that is adjusted by an index, the CET therefore tells you the cost under the contract’s terms, but it does not predict the effect of future inflation or of the benchmark. Ask which index the contract uses and how it is applied.

The disclosure duties

• Before signing (article 7): the institution must tell the applicant the CET and present the calculation statement. The statement (paragraph 1) must show in reais each component of the cash flows of receipts and payments, with each one’s percentage of the total owed, and the sum of all instalments.
• In the contract (paragraph 3): the statement must be inserted prominently (“de forma destacada”).
• In advertising (article 8): when an ad shows the interest rate of a credit offer, it must show the CET.
• In portability (Resolução 5.057, article 7): the proposal must show the CET, so you can compare it with your current loan (mortgage portability).

CET versus the SFH 12% cap

Do not confuse the CET with the cost cap in the housing system. Article 13 of Resolução 4.676 limits the “custo efetivo máximo” to the borrower in SFH loans to 12% a year, covering interest, commissions and other financial charges, but expressly excluding insurance premiums and the specific fees in article 14. The CET includes insurance and fees. A loan can therefore respect the SFH cap and still show a higher CET, because they measure different things (SFH versus SFI).

Why a foreign buyer should insist on it

A buyer who negotiates from abroad often compares an offer in Brazil with a loan at home, where the quoted figure may be a simple rate. In Brazil the quoted interest rate alone understates the price, because insurance, the administration fee and other charges sit outside it. Asking for the statement in writing, in reais, line by line, is a right under article 7, not a favour. If the lender is slow to provide it, that is a reason to compare with another offer before you sign anything.

A reading checklist

When the statement arrives, check:

1. Is the loan amount the same as the amount you receive, or is something added (fees financed into the loan)?
2. Which insurance premiums are in the statement, and are they the lender’s policy or yours (MIP and DFI)?
3. Which monthly administration fee is included? In SFH loans, the rule allows a monthly contract administration fee of up to R$ 25.00 (Resolução 4.676, article 14, as originally written).
4. Which amortization system is used (SAC versus Price)?
5. Do the instalments add up to the total shown?

The central bank reports average interest rates on new housing loans (11.28% a year in August 2026, SGS 20774), but not an average CET, so there is no official benchmark to compare yours with; the average is a different measure (the Selic and mortgage rates).

Which professional to consult

A mortgage lender must explain the statement (mortgage lender). A lawyer registered with the OAB can check that the statement in the contract matches the one you were shown (property lawyer). The mortgage calculator gives a rough schedule but does not compute a CET.