Brazil Mortgage Guide 2026: SFH, TR, and FGTS Funding

Lending in Brazil requires navigating strict LTV caps and DTI ratios, heavily influenced by the inflation indexing of the loan.

Loan-to-Value (LTV) Limits

SFH System (Properties under R$1.5 Million): Maximum 80% LTV via the SAC (Constant Amortization System) or 70% LTV via the Price Table. You need a 20% to 30% down payment.

Using FGTS for Down Payment: If you have worked under the CLT regime for at least 3 years, you can withdraw your entire FGTS balance to fund the down payment, provided you don't already own property in the same municipality.

Debt-to-Income (DTI) Limit (Comprometimento de Renda)

Your total monthly debt repayments (mortgage, car, credit cards) cannot exceed 30% of your gross monthly family income.

Important: Under the SAC amortization method (the most common in Brazil), your first payment is the highest and payments decrease over time. The 30% DTI test is applied to the very first, highest payment.

Use the affordability calculator to determine your maximum mortgage based on the strict 30% DTI limit.

Brazilian Amortization Systems (SAC vs. Price)

SAC (Sistema de Amortização Constante): The principal repayment is constant every month, but interest is calculated on the declining balance. Therefore, your first payment is the highest, and payments steadily decrease over 30 years. It is cheaper overall and preferred by 90% of buyers.

Tabela Price (French Amortization): The payment is fixed for the entire term (like a US mortgage). Because the initial payments are lower than SAC, it is easier to qualify for under the 30% DTI limit, but you pay significantly more total interest.

Following BCB's Selic rate adjustments, 2026 rates are heavily indexed to inflation or savings rates:

*Rates are illustrative averages as of September 2026.*

Closing costs in Brazil are high and must be paid in cash (cannot use FGTS for closing costs, only for the down payment).

ITBI (Imposto de Transmissão de Bens Imóveis): 2.0% to 3.0% of the property value, depending on the municipality (e.g., 3% in São Paulo).

Notary and Registration (Cartório de Registro de Imóveis): Regulated by state brackets, roughly 1.0% to 1.5% of the property value. Note: First-time buyers under the SFH get a 50% discount on registry fees.

Total Cash Needed: Budget exactly 4% to 5% of the property price for closing costs, in addition to your down payment. Use the budget calculator for a complete estimate.

Minha Casa, Minha Vida (MCMV) is Brazil's primary federal social housing initiative, managed by Caixa Econômica Federal and the Ministry of Cities. The program provides heavily subsidized financing rates (as low as 4.0% to 4.5% annually for northern/northeastern regions) and non-repayable government cash grants (subsídios) toward the buyer's down payment. Eligibility is partitioned into three formal income brackets (Faixas 1, 2, and 3), with statutory caps on both maximum household income and regional property appraisal values.