For approximately 30 years, around 8% of the salary of every worker formally hired by the CLT regime has been allocated to the FGTS. This system aims to ensure financial protection for Brazilians who are dismissed without just cause.
With this money, it is possible to finance a property or even pay off a debt. Another possibility is to use the FGTS to buy a property through the purchase of an enterprise, which reduces the value or amount of the installments, depending on the financing contract model.
In order to withdraw this benefit, the employee must have contributed for at least 3 (three) years, uninterrupted or not. In addition, the property chosen for investment must be in the city where the buyer works.
If the consumer already owns a property, he will not be able to purchase a second with the FGTS values. This possibility is valid only for the purchase of the first house or apartment.
Caixa Econômica Federal does not allow the FGTS resources to be invested in homes for family members, dependents or third parties, therefore, it is not possible to use the FGTS to buy property for another person
However, you can use your spouse’s FGTS, as long as, in the contract, he is considered as co-acquirer of the property.
There is still the possibility of using the Guarantee Fund to amortize or settle financing debt. The debit balance must be less than the amount accumulated in the FGTS and must be released after evaluation of conditions with Caixa Econômica Federal.
Who can use the FGTS to buy a property
The FGTS is an amount that the worker receives in an account at Caixa Econômica Federal linked to the beneficiary’s PIS number. This money can be withdrawn when the worker is dismissed or when it is released by Caixa for financing, being transferred directly to the property owner’s account.
How to withdraw the FGTS: get to know the new rules
The new FGTS withdrawal rules were updated in July 2019 by the Federal Government. Are they:
- Up To R$500 per Account: Workers Can Make An Immediate Withdrawal Of Up To R$500 Per Active And Inactive Account From The FGTS. In Case The Worker Has More Than One Active Account, He Can Withdraw Up To R$ 500 From Each One;
- Withdrawal-Birthday: The Withdrawal Of A Percentage (5% To 50%) Of The FGTS In The Month Of The Worker’s Birthday Is Scheduled For 2020;
- Income And Credit: The Fund’s Profit Will Be Fully Transferred To The Workers.
With these rules, deposited amounts can be moved.
Check out the step-by-step instructions for using the FGTS for your own home
After understanding how the FGTS works to buy property, see below the step-by-step instructions for using the fund as an investment in your own home.
Consult the FGTS
The first step is to consult the FGTS balance. If the total value is less than the property’s value, it is recommended to invest in just one entry or use it as payment in some installments.
If the value available in the fund is greater than the total value of the property, it is possible to settle the purchase with the FGTS.
Check out the infographic: how to use family income in real estate financing
To find out what the balance of the FGTS is, it is important to have your identity card and NIS (Social Identification Number), generated from the National Register of Social Information (CNIS), also linked to Caixa Econômica Federal.
With that, you can:
- Check The Statement That Caixa Econômica Federal Sends To Your Home On A Quarterly Basis;
- Go To A Caixa Branch;
- Consult The Guarantee Fund Website.
Once you know your total FGTS balance, you will be able to search for properties that match your finances.
Check the condition of the property
After that, it is important to verify that the chosen property complies with the terms for using the guarantee fund. Below, see some necessary conditions for the property to qualify as FGTS:
- Be Financed By The SFH (Housing Finance System);
- Be An Urban, Residential House Or Apartment Intended For The Applicant’s Dwelling;
- Not Be Used For Commercial Purposes;
- It Cannot Have Been The Object Of Operation With FGTS In The Last Three Years.
After making sure that the property is able to receive values from the guarantee fund, it is necessary to gather the necessary documentation to start the purchase or financing process.
To use the FGTS to purchase a property, specific documents are required. They refer to the property as well as the buyer.
Bottom of Form
The following items are part of the documentation list:
- RG And CPF Of The Buyer And The Broker Responsible For The Negotiation;
- The Birth Certificate;
- The Certificate Of Marital Status, If Applicable;
- The Work And Social Security Card (CTPS);
- Proof Of Current Residence With A Maximum Expiration Of 3 Months — Utility Bills, Such As Water, Gas Or Electricity;
- The Registration Certificate And A Copy Of The Property Tax On The Property You Wish To Purchase.
After the validation of these documents, Caixa Econômica Federal releases the amount stipulated in the contract directly to the Construction Company or seller. This way, the buyer does not have any access to the FGTS value.
Consult a financial agent
Even with all documentation up to date and approved, a third person is required in the transaction to purchase a property using the FGTS.
That is why the financial agent has a fundamental role at this time. It is he who will withdraw the money from the FGTS and deposit it in the seller’s account.
It is important to point out that it is the buyer’s role to request the action of a financial agent through a document.
They act as financial agents: banks, real estate companies, consortia, securitization companies and open private pension entities.
Attention! Some banks do not operate with FGTS, so it is important to consult your bank branch before starting this procedure.
Thus, the FGTS takes about five days to be released. The other bureaucratic processes usually take an average of 60 to 90 days.
Can I use the FGTS to buy a property on the plant?
In the budget of a property in the plant, it is necessary to add 20% to 30% more in extra costs, such as inspection, ITBI (Property Transmission Tax) etc, until the project is ready to live. This amount can be negotiated if the balance of your guarantee fund covers most of the investment in the property.
Thus, you can include your balance beforehand in the negotiation and use the fgts to purchase property, whether it is a house or apartment.
Currently, the maximum amount by law for the purchase of a property using the FGTS balance is 950 thousand reais for Minas Gerais, Rio de Janeiro, São Paulo and the Federal District. For the other states, the limit is R$ 800 thousand.
Count on Prestes to finance your property
Now that you know how to use FGTS to buy property, it’s time to make your dream of home ownership come true!
Did you know that housing finance can also be done by a real estate developer?
But remember, you have to look for a place that you trust and that is credible in the market, as this makes it easier to avoid problems.
At Prestes you will find the best interest rates and the ideal type of property for your family, choosing between a house or an apartment.
In addition to having the best prices in the market, Prestes Construtora offers ITBI (Real Estate Transmission Tax) and free registry for some properties.
For more information, contact one of our brokers through our website or WhatsApp, at (42) 9 9845-0003, and request a credit analysis now.