Mortgage Advice

Invest in Brazil

Mortgage Advice

Brazil has the tenth largest economy in the world and is in the process of opening itself up in a big way to international capital, with the government privatising state-owned enterprises, notably in telecommunications and energy.

The administration is keen to end monopolies, liberalise the financial markets and boost trade causing overseas companies and investors to sit up and take notice.

The mortgage market is underdeveloped in Brazil and currently foreigners cannot obtain a mortgage here. A limited number of mortgages are granted annually to Brazilian nations but they charge high rates.

There is a growing appreciation that major change is needed if the country's banking and financial sectors are to begin to meet the housing needs of a population that has flocked to the cities in recent years, and it is anticipated that mortgages for foreign buyers will become available in the foreseeable future as interest rates are dropping and the banks continue to develop and extend their product range.

At the moment buyers and investors usually arrange alternative financing in their own country, with developers of new build and off-plan developments offering instalment plans over periods of between 12 to 60 months. The charges vary according to the developer and the repayments are usually index linked.

If you own a property in your own country and would like to borrow against this in an equity release plan, Mila Inversiones can introduce you to an independent financial advisor who will give you advice and guidance on the best way to raise the necessary funds.