The increase in the basic interest rate, the Selic, removed about 3 million Brazilian families from acquiring their own home. A study by Fundação Getúlio Vargas (FGV) shows that the readjustment in the indicator, announced last Wednesday (2), made real estate financing in the country even more expensive.
During the last meeting of the Monetary Policy Committee (Copom), the Selic rate jumped from 9.25% to 10.75% per year. This is the eighth consecutive advance of the index, whose cycle began in April 2021.
The coordinator of the real estate business development course at FGV and responsible for the study, Alberto Ajzental, explains that for each 2.5% adjustment in the Selic, there is an increase of 1 percentage point in the cost of total real estate financing.
Each percentage point makes the acquisition of the good unfeasible for approximately one million families in the country. The study took into account the acquisition of an intermediate property — two bedrooms, for R$ 250 thousand — the most sold currently in Brazil.
In this way, since the Selic rate rose by 7.5% in 2021, the increase in interest made home ownership unfeasible for 3 million Brazilian families in the last 12 months, according to the study.
The Selic rate jumped from 2% to 10.75% between January 2021 and the same month in 2022, after almost five years with the indicator below double digits.
“The acquisition of real estate credit is the most sensitive among the financial possibilities and is directly interconnected with the Selic, because it provides the best security for banks. Financing a property represents a great added value. In the revolving credit card, for example, the Selic can drop by half, and nothing changes”, explained Alberto Ajzental.
The economist detailed the relationship between real estate financing and Selic. According to him, the rise in interest considerably affects the monthly installments to be paid.
He calculates that when the rate was 2%, the value of the installment of a property of R$ 250 thousand financed in 20 years was R$ 2,191, totaling R$ 363,033 at the end of the contract. With the Selic at 10.75%, the total value of the asset will exceed R$ 427,047, that is, R$ 64,014 more.
Source: CNN Brasil
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