Brazil to expand home financing for more affluent: source

SAO PAULO (Reuters) – Brazil’s National Monetary Council (CMN) is likely to raise the price threshold of homes eligible to be financed by a worker severance fund, a person with knowledge of the matter told Reuters, a move that could boost Brazil’s homebuilders.

Houses valued at up to 1.5 million reais ($399,765) would be eligible, an increase from a current cap of 950,000 reais, according to the source, who was nOt authorized to speak to news media ahead of the decision. CMN was expected to announce the decision on Tuesday, the person said.

The workers severance fund FGTS offers home loans as one of several ways it invests money and generally offers lower rates than regular loans.

Brazilian homebuilders are in the midst of recovering from a drop in demand during Brazil’s deepest recession in generations.

($1 = 3.7522 reais)

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