TITLE: Brazil's Monetary Council Approves New Credit Lines for Housing Improvements Under My House My Life Programme
BODY:
On October 9, 2025, the National Monetary Council (CMN) approved a resolution expanding the My House, My Life Programme (PMCMV) through the Social Fund (FS). The resolution creates the PMCMV-Improvements line, designed to finance home reforms, expansions, and adaptations, and adjusts operational rules for the PMCMV-Band 3 line launched in April 2025.
The initiative follows Law 15,164/2025, which authorised the use of Social Fund resources for social interest housing programmes. For 2025, PMCMV-Improvements will receive R$7.6 billion from the Social Fund, derived from the Annual Budget Law allocating R$18.13 billion to the programme and Ordinance GM/MPO 216/2025 supplementing R$4.53 billion. The 2026 Budget Bill projects an additional R$24.7 billion, totalling R$30 billion in reimbursable credit over the two-year period.
PMCMV-Improvements offers credit to families earning up to R$9,600 monthly at maximum nominal rates of 1.95 percent monthly, significantly below market averages. Families earning up to R$3,200 monthly access lower rates of 1.17 percent monthly. The Social Fund remuneration is fixed at 0.17 percent monthly (2 percent annually). Financing terms extend to 60 months with maximum grace periods of 180 days, and are exempt from guarantee or insurance requirements, reducing costs and expanding credit access.
The resolution also enhances PMCMV-Band 3 conditions, permitting grace periods up to 36 months for housing unit construction financing. From 2026, Social Fund operations become exempt from federal taxes under Law 15,164/2025, with financial institution remuneration fixed at 2.16 percent annually and Social Fund remuneration at 6.00 percent annually. The implicit subsidy estimate for PMCMV-Improvements is R$7.3 billion, equivalent to 20 percent of total credit volume.
The resolution entered into force upon publication. The CMN is chaired by Finance Minister Fernando Haddad and comprises Central Bank of Brazil President Gabriel Galípolo and Planning and Budget Minister Simone Tebet.