Buying Property in Brazil - Interest Rates on Mortgages at Record Lows

The central bank in Brazil has cut the country's benchmark interest rate by 0.5 per cent to a record low of 8.75 per cent, which is good news for anyone looking to buy a property in Brazil.

It is the fifth time in the past five months that the country's policymakers have agreed to reduce interest rates, which in turn lowers mortgage borrowing rates for existing Brazil property owners as well as for people currently looking to buy a home in Brazil.

The central bank is taking the opportunity to reduce rates to historically low levels, after predicting that Brazil's economy would contract by 0.3 per cent this year.

However, Brazilian property owners could see interest rates shoot back up next year, with many experts projecting that the economy will grow by as much as 4.5 per cent in 2010.

A series of Government measures, such as tax breaks and greater Government spending has already led to genuine signs that the country is now starting to emerge from recession.

The Brazil property market is expected to strengthen next year, with the United Nations predicting growth of 3.5 per cent next year.

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