• Obelisk Group
• Obelisk Interiors
• Obelisk Careers
• Obelisk Investment Property
• Obelisk Absolute Guides
• Obelisk Legal Services
• Obelisk Private Finance
• Obelisk Media

Spain: +34 952 820 319

UK Freephone: 0808 160 0670 | EIRE Freephone: 1800 932 514

Brazil Mortgages on the Horizon

<< Go Back

Brazil Mortgages on the Horizon

Brazil, the world’s 10th largest economy, continues its impressive but steady and stable economic growth. Increases in year-on-year GDP growth (5.8% in Q1 2008 and 6% in Q2 2008) have improved the average Brazilian’s income and, according to the Council of Americas, have allowed 20 million Brazilians to move out of the poverty bracket and into the emerging middle class.

It is these middle classes that are fuelling the current explosion in domestic consumption. Home ownership, previously only accessible to the very affluent, has grown rapidly through the recent introduction of long-term mortgages. Still in its infancy, Brazilian mortgage loans represent just 2% of Brazil’s GDP, compared to 69% in the US, but although the Brazilian mortgage market might be small, it has the potential for huge growth. In August 2008, Brazil’s Central Bank reported a 30% year-on-year increase in mortgage loans.

Brazilian banks are continually introducing new mortgage products for Brazilians and mortgage terms are becoming more flexible. In addition, Brazil has the added advantage that the terms ‘subprime’ and credit crunch are virtually unheard of in the Brazilian financial and economic sectors. 

Brazilian mortgages are currently not available for non-residents, but this is about to change with Bradesco Bank, Brazil’s largest private sector bank and at the forefront of Brazilian retail banking. Bradesco Bank has confirmed to Obelisk Private Finance that they are confident that it is only a matter of time before mortgages are introduced for non-residents.

Working together with Bradesco Bank, Obelisk Private Finance is pleased to be associated with one of the first mortgage products for non-residents in Brazil, which are expected to be available for Obelisk’s latest investment project, Laguna Beach in Tabatinga, Brazil. In association with Obelisk, Bradesco Bank has proposed that investors at Laguna Beach, Tabatinga have access to a mortgage of up to 50% of the property’s value.

Ken Thorkildsen, Director of Obelisk Private Finance, believes this move is excellent news for property investors in Brazil. “The mortgage proposed by Bradesco Bank SA at Laguna Beach is an exciting development and adds tremendously to the project’s investment potential. “ 

<< Go Back