The Guarantee Fund for Time of Service or FGTS is a good ally for those who work with a formal contract and intend to buy a property. This fund, paid by the employer to the employee on a monthly basis, is retained at Caixa Econômica Federal (CEF) and can be withdrawn, under specific conditions, the two most common being: if he loses his job without cause or wants to buy a house or apartment.
The FGTS balance can be withdrawn in whole or in part and can be used, according to CEF rules, to buy a property, amortize or write off the outstanding balance of the financing.
When it is possible to use FGTS
The milestone for counting the length of service so that you can use the guarantee fund, starts from the date of your employment as an employee, registered in the work card (CLT). In order to use the FGTS for the purchase of real estate, it is necessary to complete at least three years of formal contract. These periods do not have to be consecutive, and when this mark is reached, there are no restrictions on when to use the FGTS: the use does not depend on the age or condition of the person’s name in the square.
No debt of the worker, prior to the start date of the FGTS period, prevents him from using his guarantee fund with the intention of buying a property, either for cash purchase or as a complement to housing financing. However, being in debt and / or with the name listed in credit protection services, such as SPC or Serasa, can block credit approval for the financing itself.
However, some restrictions apply to the use of the guarantee fund for the purchase of a new home. The worker cannot have active financing in the Housing Financial System in any part of the country, that is, he cannot be in the process of paying the installments of another property on his behalf. He also cannot own a residential property in the municipality where he intends to buy the new one, nor in the neighboring region (approximate radius of 100km), only in other cities (for example, having a house in Barbacena does not prevent the worker from buying another one in Belo Horizonte – but he cannot buy another property in Barbacena, or a neighboring municipality using FGTS).
In addition, the person who finances with the help of FGTS must necessarily work or live in the municipality in which the property he intends to buy is located, or a neighboring municipality (the table of bordering municipalities must be consulted with CEF). This requirement can be replaced in the event that the employee has recently been transferred, by a letter from the company stating that he is exercising the professional activities of the municipality where the property was acquired.
If your profile fits the requirements and you don’t have any of the restrictions listed above, it’s time to choose the property and enjoy the benefit.
How to use the FGTS for real estate financing?
The first step is to carry out the consultation and find out how much you have in cash (FGTS balance) to be able to make the investment.
Anyone with a bank account at Caixa Econômica Federal usually receives a statement with the FGTS balance in the mail every three months. Those who do not have a Caixa account or do not receive this document at home can check on the internet, on the FGTS website, having in hand the NIS number (PIS / PASEP) and the internet password, previously registered with a Caixa branch. The last option is to go to the bank branch and ask for the balance in person, presenting ID card and NIS number.
With the balance checked, it is time to find out how much of it can be used in the purchase, settlement or amortization operation of the outstanding balance of the property or the installments of the contract, through the help of a financial agent. In some cases it is possible to pay up to 100% of the financing directly with the FGTS. Anyway, when having the purchase use value, it is necessary, if you have already chosen the property to gather the necessary documents (the list you can find on the FGTS website), but the main ones are:
- ID card;
- Individual Taxpayer Registration (CPF);
- Birth certificate;
- Certificate of marital status, if applicable;
- Work and Social Security Card (CTPS);
- Proof of current residence with a maximum of 3 months due – service bills, such as water, gas or electricity;
- Registration certificate and a copy of the property tax of the property you want to buy.
Thus, it is enough to deliver them to a Caixa branch for the opening of the purchase process, or to count on the help of a bank correspondent who has dispatcher services to make the process even faster.
In order to use the FGTS, there are several rules and to facilitate this process, banks adopt the division into frameworks. They use authorization forms for moving linked accounts called Damp. We can divide the use of FGTS into three frameworks:
The acquisition can be made in cash with the value of FGTS or as a percentage on entry. However, for this option the grace period is three years.
Here, it is possible to use the FGTS to amortize the outstanding balance, either in installments or in the amount of installments. In addition, it is possible to settle your outstanding balance. The grace period is painful and cannot be used for late payment.
In Damp III, FGTS is used to reduce the installments of the property financing contract. It is also possible to use the resource to discount up to 80% of the value of the monthly installment of real estate financing. In addition, it can be used to write off up to three overdue installments.
Conditions for the use of FGTS
There are a number of conditions to be observed before using FGTS to purchase a property:
For the buyer
It is necessary to have at least three years of work under the FGTS regime, adding the periods worked, consecutive or not, in the same or in different companies.
- Not having active financing in the Housing Finance System (SFH), anywhere in the country.
- Not to be an owner, possessor, promising buyer, usufructuary or assignee of urban residential property or residential part of mixed property, completed or under construction, located in the municipality of your current residence, or where you exercise your main occupation, including neighboring municipalities and members of the same metropolitan region.
For the property
- The valuation value must be up to R $ 1,500,000.00 for all Brazilian states.
- The land object of the construction of the property is owned by the proponent, in the case of construction without land acquisition.
- Being urban residential;
- It is intended for the holder’s home.
- Present, on the final evaluation date, full living conditions and absence of construction defects.
- To be enrolled in the competent RI and without registration of a lien that results in an impediment to its commercialization.
- Not having been subject to the use of FGTS in a previous acquisition, less than 03 years ago, counted from the date of the effective registration in the property’s registration, for example, if the acquired property was registered in the registration on 11/30/2009, only new can occur use as of 01.12.2012.
What properties can I buy with FGTS?
Not all available properties are eligible to receive the guarantee fund for the purchase or amortization of the financing installments. To use this it is necessary that the house or apartment:
- It fits into the Financial Housing System (SFH), which had its value limit recently set at R $ 750,000.00 for the states of Minas Gerais, Rio de Janeiro, São Paulo and the Federal District.
- Being urban, that is, being inside the city (farms and farms, do not apply to the use of FGTS);
- Be residential (there is no possibility to buy a commercial room, for example) and intended for the worker’s home;
- It is not allowed to use the resource for construction;
- The chosen property cannot have been purchased with FGTS funds in the last 3 (three) years.
In short, FGTS can be used to make the dream of home ownership a reality, no matter if the property is new or used, as long as it fits the conditions established by Caixa and the profile of the buyer. The longer the signed portfolio time without any prior withdrawal, the greater the balance to be withdrawn to amortize the financing, however, it is worth mentioning that the FGTS income is low and does not keep up with inflation, which makes it even more advantageous to use it when buying a property.
To find out more about properties that fit in your pocket and the right profile for using FGTS, talk to the Casa Mineira brokers and Blue World City.
There will surely be a house or apartment in perfect condition in our base just waiting for you to finally call it home.