Portugal and Brazil expand housing credit options with parental co‑borrowers and stricter program rules

In Portugal, banks increasingly invite parents to act as second borrowers on mortgage contracts when a young applicant lacks sufficient income or credit history. The parents become jointly liable for the loan repayments and any future financing, while the young buyer may later assume full responsibility. Advantages include higher approval chances and access to larger loan amounts; drawbacks involve the parents' credit being tied to the loan and potential difficulties obtaining new credit.

In Brazil, the government’s Minha Casa, Minha Vida program for 2026 tightens possession requirements for beneficiaries. Borrowers must strictly comply with contractual clauses, or risk the state‑run lender Caixa Econômica Federal reclaiming the property. The bank monitors compliance, verifies proper use of the home, and enforces penalties for violations, aiming to protect public funds and keep the waiting list moving.