The Guarantee Fund for Length of Service (FGTS) is a right of every Brazilian worker submitted to the CLT, which works as an accumulation of resources throughout the working time. In order to make life easier for those who want their own home, the funds from these funds can be used in the real estate market, including for financing.
At the same time, there are established deadlines between one use and another, in order to protect the worker and avoid excessive spending. So, after all, how many times is it possible to use FGTS for financing? How does the use of FGTS to amortize financing work? Check out the answers below!
What are the possibilities of using FGTS in financing?
We will explain how many times the FGTS can be used in real estate financing according to each possibility of use.
Use to enter the financing
As the financing corresponds to a percentage of the value of the property, many people use the FGTS resources to enter the financing. In this case, it is possible to use the FGTS amount to cover the entire entry, if there is a balance available.
Once the resources are used for this purpose, it is necessary to wait a period of 3 years to use them again. Thus, whoever starts financing in 2020 will only be able to enter another one with the resources of the guarantee fund, at least, in 2023.
Use for the amortization of financing
Another possibility includes using the funds to amortize the amount to be paid in the financing. In addition to definitely reducing the time it takes to have the asset permanently, it also reduces the amount of accrued interest that must be paid. But how does the use of FGTS to amortize financing work?
The resources of the guarantee fund can be used for this purpose every 2 years. Considering that the financing usually takes between 15 and 30 years to be paid, it is possible to reduce the amount to be paid every two years.
This means that, in addition to the possibility of using the FGTS to enter the financing, it is also possible to use it again in the same property, either to repay the debt or to pay part of the installment, as long as the legislative rules mentioned in the throughout this post.
Use to pay part of the installment
The funds of this fund can also be used to decrease the amount that must be paid. In this case, it is possible to make the payment of up to 80% of the installment amount. In the case of an installment of R $ 2,000, for example, FGTS can cost up to R $ 1,600 per month. Use can happen every 12 months.
Payment of arrears in installments
As for the payment of installments in arrears, Caixa Econômica Federal allows the use of the guarantee fund to be used only to settle a maximum of three installments of the financing. However, it is worth mentioning that this rule may be challenged in court.
Judicial decisions may authorize the payment of more installments in arrears, provided that the borrower complies with the other rules of real estate financing – for example, having a balance in the account linked to the FGTS and the value of the property is compatible with the limits of the fund.
ATTENTION: the deadlines do not overlap!
Although each purpose has a deadline to use the FGTS again, the truth is that these periods do not mix. In other words, someone who uses half of the FGTS to provide the property does not have to wait 3 years to use it for amortization and can do it immediately.
Likewise, if in 2020 someone uses the FGTS to amortize the amount of the loan, there is no need to wait until 2023 to pay part of the installment. Used in 2020 for this purpose, it can be used again in 2021 and, in the following year, for debt repayment.
This feature helps to ensure flexibility in the use of FGTS and, in a way, it also helps to reduce the risk of default, since it is possible to amortize the debt or the amount of the installment if the payment becomes heavy in a certain period.
The number of times that it is possible to use FGTS for financing will depend on the time established to settle that credit. In general, it is possible to use the resources in periods that do not mix and that range from 1 to 3 years, depending on the purpose, giving greater flexibility to those who acquire the property.
ATTENTION: FGTS is a right guaranteed by law!
As stated at the beginning of the post, FGTS is a right guaranteed by Law No. 8,036, of May 11, 1990, to every worker hired under the CLT regime. According to a decree, the fund that must be paid by the employer to the employee is deposited with Caixa Econômica Federal in accounts opened automatically from the employment contract.
The Length of Service Guarantee Fund was created by the government as an alternative to reserve money for the duly regulated worker. At the same time, FGTS functions as a resource for financing housing and related works, such as basic sanitation and urban infrastructure.
Anyone wishing to use the FGTS to finance real estate must do so based on a process called the Financial Housing System (SFH) , according to previously defined amount limits and rules previously cited as to the entry and amortization of the financing debt.
How does FGTS financing work?
In order for you to better understand how this procedure works, it is necessary to consider the legal requirements provided for in Brazilian legislation regarding the use of FGTS for own housing. The main one is related to the fact that, necessarily, the transaction needs to be intermediated by an SFH financial agent.
And who are these agents? They are mainly banks, consortia or real estate financing consultancies. In real estate negotiation, for example, it is the financial agent who withdraws the value of the guarantee fund at the request of the worker. Therefore, it is essential to have a reliable and specialized consultancy in the market to carry out the transaction with agility, security and risk-free.
Below, we summarize the main rules for real estate financing by the Housing Finance System (SFH). Check out:
- property conditions: valid only for residential properties like park view villas, it is not possible to use the FGTS for more than one – in addition, it is necessary that the financing is related to the buyer’s first property and that the property is in the city where he lives or works;
- property value: the maximum value must be R $ 750 thousand for the states of São Paulo, Rio de Janeiro, Minas Gerais and the Federal District or R $ 650 thousand in the other states;
- payment term: the financing limit extends for up to 420 months (35 years);
- interest: the rate is up to 12% per year;
- financing limit: maybe up to 90% in the SAC table (where the installments decrease over time) or up to 80% in the Price table (where the installments remain at the same value).
See also other requirements that must be met to use FGTS in real estate financing:
- have at least 3 years of the formal contract (it does not necessarily have to be in the same company);
- live or work in the city where the property is located;
- not own a residential property in the city where the second property is located;
- not having active financing in the Housing Finance System (SFH);
- keep the financing installments up to date when requesting the FGTS balance to assist in the transaction.
How to find out the FGTS balance?
There is no secret to this: every three months Caixa Econômica Federal sends an extract with the FGTS balance to your permanent residence or address linked to the account. You can also do the conference over the internet. Just have your NIS number (PIS / PASEP) in hand and register a password in the system.
If none of these options is feasible, go to a Caixa branch with your identity document and NIS number to find out the balance. With the balance checked, you can now enter the purchase, settlement or amortization procedure of the property’s installments.
Here’s a golden tip: FGTS can be withdrawn any day of the month. However, the Fund’s balance is adjusted every day 10. Therefore, if possible, request payment after that date. Do not forget, however, that the longer you have a formal contract with no prior withdrawal, the more resources you will have in the Fund to use in the operation.
What documents are needed in the transaction?
Among the necessary documentation to request the use of FGTS in real estate financing, the following stand out:
- basic identification documents (RG, CPF);
- birth certificate;
- negative certificate of federal tax debts and active debt of the Union;
- negative declaration of ownership of the property;
- declaration of Income Tax (IR) (or proof of exemption);
- rent receipt or condominium fees (water, energy, telephone or gas bills);
- proof of monthly income (payslip, bank transaction statements, credit card bill, among others that attest to the buyer’s financial situation);
- PIS / PASEP card or another document with that identification number.
In the transaction, some documents related to the FGTS account are also required, namely:
- Work and Social Security Card;
- employer statement;
- FGTS account statement;
- request to move the FGTS account.
We remind you that this list of documents may vary depending on the buyer’s marital status and his intention to finance 100% of the property value or only a part of the property. Consider having a financial advisor to guide the purchase process and streamline paperwork preparation.
That way, you save your time and still be sure of a successful business, after all, specialized companies are used to dealing with this type of negotiation on a daily basis. So it will be easy to get your dream off the ground, buying a new house or getting rid of debts for good.
If you still did not know what to do with your balance, you are now convinced that it is worth using FGTS for financing.
What are the main points of attention in relation to FGTS?
First, the worker cannot count on money that has not yet come. You cannot finance a property by betting on the possibility of using the resource in the future. In some cases, the person may be dismissed from the company while still in the experience phase, accumulating little capital in his FGTS account.
Another point of attention is to ensure that the FGTS is being deposited by the company. Not everyone follows up on deposits, relying only on the professionalism of the company in which they operate. However, many businesses do not deposit the amounts.
You must follow through the FGTS website or the application if deposits are being made regularly. They must occur every day 07 and the deposited amount is equivalent to 8% of the salary, including the paid vacation and on the 13th.
If your company is not making the deposit, you should go to HR and see what is going on. If there is no possibility of dialogue, you can file a labor lawsuit in court or even make an anonymous complaint at the Regional Labor Office nearest to your city.
If you have been dismissed and your former employer has not deposited the full amount of your FGTS, know that it is possible to go to court complaining – as long as you respect the maximum period of two years from the date of termination.
What are the benefits of using the FGTS to amortize the financing?
The FGTS balance is a type of compulsory savings. It can only be moved in specific cases. Therefore, the main advantage of using this resource in the use of FGTS for the amortization of financing is to be able to give this capital a more immediate utility in the taxpayer’s life.
In addition, by using this amount to repay the installments, the buyer reduces the impact of interest on financing, depending on the table used in the contract, and approaches the full payment of the debt.
How to use the FGTS to amortize the financing?
You can look for the bank branch or office where you did the financing. These professionals will do the amortization simulation and, if the result is to your liking, you can request the procedure, presenting the requested documents to proceed with the amortization.
As we have seen, the use of FGTS to amortize financing is one of the possibilities to make this purchase more viable. This resource is a citizen’s right and its deposit must be made regularly by the employer. Furthermore, with the use of technology, it is easy to check if your employer is depositing FGTS in your account.
Now, how about doing a financing simulation using your FGTS to make the entry? Find out right now how much the parcels would cost!