SAO PAULO, March 8 (Reuters) - Brazilian state bank Caixa Economica Federal, which dominates mortgage lending in the country, announced on Tuesday it was expanding its mortgage lines in an effort to stimulate the beleaguered homebuilding sector.
Caixa, which issues around 70 percent of Brazilian mortgages, will raise its maximum loan-to-value ratio from 60 percent to 80 percent. The bank will also allow clients to have two different mortgages.
Caixa Economica’s president, Miriam Belchior, said the bank expects a 13 percent increase in mortgage lending this year to finance 64,000 homes. The state lender also announced a new 2.4 billion reais ($640 million) credit line to homebuilders.
Earlier on Tuesday, the state lender reported 7.2 billion reais ($1.9 billion) in net income in 2015, 1 percent higher than in the previous year.
$1 = 3.7640 Brazilian reais Reporting by Cesar Bianconi; Editing by David Gregorio