Mortgages in Brazil: how they work

The two layers of the rules

Brazilian housing finance has a federal rulebook and a market on top of it. The rulebook is Resolução CMN 4.676 of 31 July 2018, in force since 1 January 2019 and amended several times since, most recently by Resolução CMN 5.255 of 10 October 2025. It sets the general conditions that every lender authorised by the BCB must follow when it grants a home loan. The market sits on top: each lender chooses its own rate, term, income test and documents, within those limits.

The rulebook distinguishes loans inside the Sistema Financeiro da Habitação (SFH, the housing finance system) from other real-estate loans. The SFH has its own ceilings on the property’s value and on the cost to the borrower; the difference is explained in SFH versus SFI.

How much can be borrowed

The rulebook limits the ratio between the loan (principal plus ancillary expenses) and the appraised value of the property on the contract date. Article 6 sets:

• 80% for the financing of a residential property purchase, and for an individual building a home;
• 90% where the SAC or SACRE amortization system is used (see SAC versus Price);
• 60% for a loan to an individual secured by a home but not used to buy it (home equity).

The percentage applies to the appraisal carried out for the lender, not necessarily to the price in the contract. As a calculation, not an offer: on a property appraised at R$ 600,000, 80% is R$ 480,000 and 90% is R$ 540,000. The rest, plus the purchase costs described in closing costs in Brazil, comes from the buyer’s own money or from the FGTS (see using the FGTS to buy a home).

The rulebook does not set a numeric limit on the share of income a payment may take. Article 11 requires the lender to assess repayment capacity, taking existing commitments and a mínimo existencial (a minimum for living costs) into account, with the effort calculated on the highest instalment in the contract. How that test is applied is the lender’s decision.

The guarantee and the insurance

Loans to buy, build or produce a property must be secured by the property itself, as article 7 provides. In practice this is alienação fiduciária: the lender holds the property in trust until the loan is repaid, and the guarantee is registered at the Registro de Imóveis (property registry). The consequences for a borrower who stops paying are set out in alienação fiduciária and mortgage default and foreclosure.

Within the SFH, the law requires insurance covering the borrower’s death and permanent disability and physical damage to the property. See mortgage insurance, MIP and DFI.

What the central bank reports on rates

The BCB publishes, as open data, the average rate on new housing loans to individuals. For August 2026, these are the figures Payotte read on 15 October 2026:

The series describe loans regulated by the CMN or tied to budget resources, weighted by amount. They are averages of past contracts, not a quote; your own rate depends on the lender’s decision. To see what drives the market, read the Selic and mortgage rates. The rate is only one part of the price: the custo efetivo total (total effective cost), explained in CET, includes insurance and fees, and lenders must give it to you before signing.

Can a non-resident foreigner get one?

No official text Payotte read in the housing-finance rules (Resolução 4.676, Lei 9.514, Lei 8.036) requires the borrower to be a Brazilian resident or citizen. Whether a given lender grants a loan to a non-resident, in what currency and on what conditions, is the lender’s decision. Government programmes are different: the FGTS and the Minha Casa, Minha Vida programme rest on conditions that assume work or residence in Brazil, as the guides on each explain. For the purchase itself, see buying property in Brazil as a foreigner.

What to compare

• Rate and CET: ask for the CET statement before signing; it must be shown to you in advance.
• Amortization system: SAC or Price changes the first instalment and the total paid.
• Insurance: you may present an individual policy instead of the lender’s, within the rules.
• Portability: you may later move the loan to another lender (mortgage portability).

Use the mortgage calculator for an estimate with the published reference rates.

Which professional to consult

A mortgage lender or an authorised correspondent for the offer itself (mortgage lender); a lawyer registered with the OAB for the loan contract and the guarantee (property lawyer); and a property appraiser for the valuation that sets the loan ceiling (property appraiser).