CaixaEconômica Federal's vice president for housing, Nelson Antonio deSouza, said the state-run bank will distribute 16 billion Brazilian reais inloans by year-end for mortgages and new home construction under its revisedlending guidelines, O Globo reported.
The loans are possible under the bank's new lending rulesthat took effect July 25 that doubled the maximum value of real estate properties thatcan be financed to 3 million reais from 1.5 million reais. Additionally, the rules increased the maximumloan-to-value ratio to 80% from 70% for new properties and to 70% from 60% forexisting properties, among other conditions.
Construction companies will also be able to obtain creditfor housing projects that meet specific guidelines, according to the July 25report. Overall, the rules aim to be more lenient to further boost credit inBrazil's housing market.
Financing sources will be derived from mortgage lendingreturns, savings deposits and fundraising and will allow Caixa to meet its goalof allocating 93 billion reais to real estate lending in 2016, Souza noted.
As of July 25, US$1was equivalent to 3.29 Brazilian reais.