Brazil private banks raise mortgage interest rates

Major private banks in Brazil, including Bradesco, Itaú Unibanco, and Santander, have increased interest rates for real estate financing. The adjustments, which took effect in late October 2026, follow a rise in future interest rate expectations following recent elections.

Bradesco raised its main rate from 11.69% to 15% per year plus the Taxa Referencial (TR), with minimum rates for certain segments starting at 13.60%. Itaú Unibanco increased its minimum rate from 11.99% to 12.95% per year plus TR, while Santander raised its minimum from 11.69% to 12.49% per year plus TR. These changes mean the three institutions now operate above the 12% annual limit previously set for the Housing Finance System (SFH).

Separately, Itaú Unibanco has significantly revised its economic projections for Brazil. The bank lowered its 2027 GDP growth forecast from 1.2% to 0.5% and raised its inflation (IPCA) projection for 2027 to 6.1%, well above the central bank's target. The bank cited increased fiscal uncertainty, a stronger dollar, and higher costs for fuel and labor as primary drivers for the more cautious outlook.