Brazil is the largest country of South America. It has high potential for growth in the housing finance sector. With its steady inflation coupled with innovative legal amendments, Brazil has positioned herself as a role model for a rising home loan market.
Brazil has a population of greater than 160 million and it has an area that is approximately equal to the United States of America. Brazil ranks as the top industrial and financial force of South America and it has the 10th biggest economy of the world. A lot of foreign direct investments (FDI) are also taking place in Brazil. All these factors have collectively contributed towards the growth of home loan sector in Brazil.
The home loan market of Brazil is going through a consistent phase of growth. A major revamp is going on in order to restructure the financial and banking sectors of the country. This is being done keeping in view the increasing population in different cities of Brazil and the consequent uprising demand for real estate. The lower income group in Brazil is in need for housing facilities.
In 1997, a legislation w as passed in Brazil and this is known as Law 9514. It allowed securitization in order to bring liquidity in the home loan industry of Brazil. This has proved to be an efficient, as well as pathbreaking initiative towards the development of the housing loan market of Brazil.
