nvesting in your own home is investing in the safety and comfort of your family, but we know that having a property to call your own is not an easy deal. One of the most traditional modalities is to make a financing to acquire the good. Even though it is a procedure that lasts many years, the good news is that there are resources that can reduce the amount of debt or the payment term.
One of these means is the use of FGTS to amortize the property’s financing. And who doesn’t like to count on advantages to pay off a debt in advance or to soften the monthly installments? In this article, we will explain to you how this fund can help you in this process, what documents are needed and other important details for you to take advantage of this benefit. Good reading!
How does amortization work with FGTS?
Those who work with a formal contract have the Guarantee Fund for Length of Service (FGTS). This right is free of taxation and can be used to facilitate the financing made by the citizen in the purchase of his own house or apartment. It is a way to smooth the monthly installments or to anticipate the end of the contract. The option is at the consumer’s discretion.
If the worker already has an emergency reserve sufficient to cover family expenses for the next six or twelve months – and, with that, he will not need the FGTS money to maintain himself, in case of dismissal – he will have three good options for use FGTS in financing. Check out!
Pay off the outstanding balance
The first alternative is to pay off the debt totally or partially (or even the arrears) with the value of the fund. In this way, as it is not possible to withdraw the interest on installments, you anticipate or pay off the principal amount of the debt, plus interest on financing plus contractual charges.
It is an advantage because you can take a breather in the payment of the installments and stay awhile, according to the number of months you have anticipated, without having to pay the installments that have already been paid in advance.
Decrease the value of the next 12 installments
However, depending on the case, the second alternative may also be interesting. It consists of using the money to decrease the number of installments paid per month. For this case, it is possible to pay up to 80% of the next 12 installments or those that have already expired, as long as there are no more than three arrears.
In this case, the value of the fund is divided into 12 times (total installments in the year) and the result corresponds to the amount that can be reduced for each installment, up to 80% of its total value. It is important to note that amortization can only be made every two years.
Reduce the number of installments
There is also the option of using the FGTS to reduce the total installments of the contract. It is an excellent choice for those who can easily pay the full monthly amount and do not need so much of a breath, as this alternative maintains the value of the installment, but tends to end the financing earlier.
What are the requirements for using FGTS to amortize financing?
In order to request amortization using the fund’s value, it is necessary that the employee has at least three years of formal work – in the same company or in different companies. Nor can he have other active financings in the Housing Finance System (SFH).
Nor can the citizen be the owner or have any relationship with another urban residential property that is located in the same municipality or metropolitan region where he resides, works or intends to live or work.
Another important point is that, for this amortization case, the property can only be valued at up to R $ 1.5 million. In addition, it cannot have been used or deducted by the FGTS by a previous buyer at least three years ago, from the date the property was registered.
How does the withdrawal of active and inactive accounts work, in this case?
As we are talking about facilities for the payment of the debt of the own house, it is worth mentioning that, at the beginning of the second half of 2019, the Federal Government authorized the release of active and inactive FGTS accounts. The worker will be able to withdraw up to R $ 500.00 as of the month of September, however, the amount will depend on the amount accumulated in the fund.
This amount will not be enough to guarantee a good amortization, but it will certainly contribute to providing relief for the payment of the installment of the month of your financing. It’s already a good budget help, right?
For those who have a Caixa account, payment will be made automatically according to the dates:
- from 9/13, for those born from January to April;
- from 9/27, for those born from May to August;
- from 10/09, for those born from September to December.
For those who do not have a Caixa account, the payment will be released from October 18, and the deadline is until March 2020. Each month of birth has a specific date for withdrawal, which can be consulted on the Caixa Econômica website Federal.
What documents are required to apply for amortization?
If you have already consulted and saw that it has a considerable amount of FGTS to amortize financing and fits within the requirements mentioned above, gather the following documentation to carry out the assessment:
- official photo identification document;
- statement of your FGTS-linked account;
- Work Card;
- updated paycheck;
- certificate of registration of the property, containing the registrations already made, in case of financing for the construction of residential properties;
- Annual Individual Income Tax Declaration (DIRPF). If you are married or in a stable relationship, a statement from your spouse or partner must also be submitted.
As the Guarantee Fund is a right that, in practice, cannot be withdrawn at any time the worker wishes, it is interesting to take advantage of the occasions when the Government releases the withdrawal and use the FGTS to repay long financing – as is the case homeownership, a dream of most Brazilians.
And you, did you already know that you can use the FGTS to reduce your financing? Share on your social networks and help others with this information!