Over the past 5 years mortgages have become readily available for residents in Brazil.  This has been spearheaded be Caixa Economica, the State owned bank and through government initiatives such as Minha Casa Minha Vida.  Other banking groups such as Itau and Bradesco also offer locals finance to buy property.

However, as with many emerging markets property mortgages in Brazil are not yet available to non residents. Although this has been a deterrent for some investors who want to maximise their leverage, on the positive side, it has meant that the market has not been exposed to speculators, which artificially escalates prices and can cause property price bubbles.

We work with a number of developers who understand that this lack of finance is a barrier to entry into the market for some investors.  Therefore on some of their developments they offer extended payment terms so that buyers can pay for their property, after they have actually taken possession of it.

There are several of the large global banks that are investigating offering mortgages to international buyers and one bank claims to be able to offer finance to international buyers now, although their rates are not commercially attractive.