Drop in real estate interest rates: is it the right time to buy a property?
/ Uncategorized / By demo demo
The Selic rate, a benchmark interest rate in Brazil, is the basis for fixed-income investments and credit operations, such as real estate financing. In 2021, the Selic rate increased by 3.5% per year, but even so, real estate credit interest rates are at one of the lowest levels in the country’s history. But what does this mean?
Initially, lower rates favor borrowers’ purchasing power, with the likelihood of a greater transfer to real estate credit rates. This drop intensified competition between banks, unlocking the portability of real estate credit and accelerating the entry of funds and fintechs into this market. For those who were already preparing to buy a property, whether to live or invest, financing conditions have become advantageous, with several opportunities to be evaluated, such as rates adjusted by the TR, IPCA and fixed rates.
In addition to the drop in the Selic rate, the country is experiencing a scenario of low profitability for savings and fixed income, and the rise in real estate prices below the rate of inflation. And even if there is a possibility of an increase in the Selic rate in the coming months, real estate credit will still be an excellent deal. In the words of Claudio Hermolin, CEO of Primaz: “Waiting for an opportunity to get a discount on real estate in the medium and long term will not be greater than the impact of a possible increase in the interest rate. If you have the ability to obtain a real estate loan today and want a property, now is the time.”
