Bradesco, Itaú and Santander raise interest rates on real estate financing after rising future interest rates

Three of the country's largest private banks, Bradesco, Itaú and Santander, announced increases in real estate financing rates in recent days. The movement makes buying your own home more expensive and occurs even with the Selic rate on a downward trend, according to a G1 report commented on by the Investidor Sardinha channel.

Together, the three institutions accounted for around 55% of the amount financed for property acquisition between January and September this year, according to data from the Brazilian Association of Real Estate Credit and Savings Entities (Abecip). Caixa Econômica Federal, which leads the hiring process, did not say whether it will readjust its rates and claimed to be in a silent period before the release of the balance sheet.

What changed in rates

At Bradesco, the main rate increased from 11.99% to 15% per year plus TR, and that of the private segment rose from 11.70% to 13.60% plus TR. The new table came into force on Monday. The bank stated that it updated the maximum rates due to the rise in market interest rates and that the final conditions depend on the individual analysis of each client.

Itaú readjusted the minimum rate to 12.95% per year, starting on Thursday. In the private segment, the rate starts at 12.89%, and for non-account holders it reaches 14.85%. The bank attributed the adjustment to the cost of raising funds in the market. At Santander, the entry rate went from 11.69% to 12.49%, the lowest increase among the three, according to the channel's presentation.

For lawyer Danielle Accamine, a real estate market specialist cited by G1, the size of the adjustment is surprising: it was above 3 percentage points per year for most clients. According to her, this can make the installment significantly more expensive and reduce the amount that the family can finance, reducing purchasing power.

Future interest and long-term credit

Banks justify the movement by the rise in future interest rates. The yield on Brazilian 5-year bonds went from 12.37% to 15.39% after the elections, an increase of more than 2.5 percentage points. These interest rates reflect market expectations for rates in the coming months or years and fluctuate as projections for inflation, public accounts and economic activity change. Therefore, they can rise even when the Selic falls, which occurred in September, the fifth consecutive reduction.

As real estate financing is a long-term credit, the institution protects itself based on future curves, and not just the basic rate of the day, explained the expert. Itaú added that the product depends on resources raised in the market, and therefore fluctuations affect the cost of the operation.

Presenter Raul Sena noted that the report does not directly cite the election as the cause of the increase, although he associates the movement with the post-election period. In his assessment, Caixa could hardly operate against the market and must adjust its rates after the electoral period.

What does this mean

According to the presenter, who claims to have warned throughout the year that owning a home would become more expensive, the channel's recommendation is that anyone who has not yet formalized financing should wait. He recalled that proposals already approved by banks remain valid for a specified period, and that rates vary from bank to bank depending on the customer's profile.

For investors, the episode shows how the perception of fiscal and political risk is transmitted to the real economy: the cost of long-term credit responds to expectations for inflation and public accounts, not just the current Selic. The transcript does not provide additional projections about the stock market, the dollar or the future direction of interest rates.

Automatically translated from Portuguese.