HOFINET | Housing Finance Information Network

Housing Finance Policy

PDF featuring variable definitions

A. Legal and Regulatory Framework

A.1 Legal and Regulatory Framework

Variable	End of 2018	End of 2017	End of 2016	Sources	Var ID
Basis of the legal system: Civil, Common, Islamic, Other? (Describe)	Civil law	Civil law	Civil law	Country Editor	A.1.1
Are there specific laws that deal with mortgages?			Yes	Country Editor	A.1.2
Registration/Transfer of titles:					A.1.3
Does the law clearly define different types of property rights?			Yes	Country Editor	A.1.3.1
Are property rights easily transferable?			Yes	Country Editor	A.1.3.2
Identify barriers to the registration/ transfer of property title.			Registration costs, number of notaries/certificates involved	Country Editor	A.1.3.3
Typical number of days needed for the transfer of title			10	Country Editor	A.1.3.4
Can liens be effectively enforced?			Yes	Country Editor	A.1.4
Number of months until lender acquires the property in case of foreclosure on a single-family residential property?			2 to 3 months	Country Editor	A.1.4.1
Cost of foreclosure process as a percentage of the value of a typical loan?			30%	Country Editor	A.1.4.2
Main causes of inefficiencies (legal, judiciary, administrative, cultural, etc.)			Notary	Country Editor	A.1.4.3
Are there legal constraints on the types of mortgage products that are permitted?	Yes	Yes	Yes	Country Editor	A.1.5
Are there legal constraints on mortgage features?	Yes	Yes	Yes	Country Editor	A.1.6
Interest rate caps			Yes	BCB	A.1.6.1
Loan-to-Value cap			Yes	BCB	A.1.6.2
Payment-to-Income maximum			No	BCB	A.1.6.3
Other			Yes	Country Editor	A.1.6.4
Are there consumer rights for mortgage lending?			No	Country Editor	A.1.7
Are there disclosure requirements for mortgage lending?			No	Country Editor	A.1.8
Is there specialized legislation covering:					A.1.9
Issuance of covered mortgage bonds			No	Country Editor	A.1.9.1
Issuance of RMBS			Yes	Country Editor	A.1.9.2

B. Housing Finance Subsidies

B.1 Subsidies to Housing Finance Institutions

Variable	End of 2018	End of 2017	End of 2016	Sources	Var ID
Are there subsidized funding sources for mortgage lenders?	Yes	Yes	Yes	Country Editor	B.1.1
Special government lines of credit	Yes	Yes	Yes	Country Editor	B.1.1.1
Government supported liquidity facility	No	No	No	Country Editor	B.1.1.2
Labor or other tax funds for mortgage lending	Yes	Yes	Yes	Country Editor	B.1.1.3
Tax breaks on mortgage bonds or RMBS	Yes	Yes	Yes	Country Editor	B.1.1.4
Loss and/or cash flow guarantees for RMBS	No	No	No	Country Editor	B.1.1.5
Other	Yes	Yes	Yes	Country Editor	B.1.1.6
Is the lending side of the housing finance system subsidized?	Yes	Yes	Yes	Country Editor	B.1.2
Shared credit risk through public/private mortgage insurance	No	No	No	Country Editor	B.1.2.1
Guarantees for mortgage loans			Yes	Country Editor	B.1.2.2
Other	No	No	No	Country Editor	B.1.2.3

B.2 Subsidies to Households

Variable	End of 2016	Sources	Var ID
Are there subsidies to households on housing finance?	Yes	Country Editor	B.2.1
Interest rate subsidies by special government funds	Yes	Country Editor	B.2.1.1
Buy-down of monthly/interest payments	No	Country Editor	B.2.1.2
Down-payment subsidies	Yes	Ministério das Cidades	B.2.1.3
Subsidies to savings for mortgage loans	Yes	Country Editor	B.2.1.4
Mortgage interest deductibility from income tax	No	Country Editor	B.2.1.5
Other	Yes	Country Editor	B.2.1.6
Reach of subsidies in 2.1.1 to 2.1.4 ?			B.2.2
What is the highest income decile targeted?	9 decile	Country Editor	B.2.2.1
What is the lowest income decile targeted?	5 decile	Country Editor	B.2.2.2
What proportion of loans is affected by the subsidies in 2.1.1 to 2.1.4?	90%	Country Editor	B.2.2.3

C. Taxation

Variable	End of 2018	End of 2017	End of 2016	Sources	Var ID
What taxes apply to Residential Real Estate?					C.1
Tax on property (home-owners)	Yes	Yes	Yes	Country Editor	C.1.1
Property transaction taxes (purchase/selling)	Yes	Yes	Yes	Country Editor	C.1.2
Mortgage transaction taxes	Yes	Yes	Yes	Country Editor	C.1.3
Tax on mortgage interest pmts	No	No	No	Country Editor	C.1.4
Tax on capital gains on property	Yes	Yes	Yes	Country Editor	C.1.5
Other	Yes	Yes	Yes	Country Editor	C.1.6
Are there tax benefits on rental properties?	No	No	No	Country Editor	C.2
Describe tax benefits (if any) from C.1.2			The property transaction tax is not charged on the following situations: I - due to the incorporation into the legal person assets in payment of the capital that is subscribed in the property; II - due to the incorporation or merge of one legal person by other or with another.	Country Editor	C.2.1