Three of Brazil's major banks have raised their home loan rates after moves in the futures interest rate market following the presidential runoff, according to Portas (Notícias).
Santander announced on Thursday, 29 October, that its mortgage rate will start at 12.49% per year plus TR (Taxa Referencial), up from 11.69% previously. The new terms take effect on 30 October. According to Portas (Notícias), the bank had said earlier the same day that it would not change its rates, but later reversed that position. Itaú also raised its minimum mortgage rate, to 12.95% per year plus TR, roughly 1 percentage point above the previous level. The bank explained that mortgage lending relies on funds raised in the market, so its costs are exposed to such swings, and the adjustment is meant to reflect current funding conditions. A few days earlier, Bradesco lifted its minimum rate from 11.7% to 15% per year plus TR, a jump described as unprecedented in size, and suspended its model of tailoring rates to each client. Portas reports that market talk suggests Bradesco may soften the increase to a level below 15%, though still above pre-election rates; the bank did not respond to a request for comment. The banks link the changes to movements in the futures interest rate market after the second round of the elections, which saw President Luiz Inácio Lula da Silva re-elected. In the week after the vote, futures DI (Interbank Deposit) rates rose, reflecting perceived fiscal risk, and part of that rise later eased. Loft CEO Mate Pencz told Portas he expects the market to reverse at least part of the initial losses and move back toward a pre-stress scenario. This is a factual summary of the reported rate changes and not financial advice.