How can I use my FGTS to buy a property?

The Fundo de Garantia por Tempo de Serviço - FGTS, is a sum of money that workers collect over time and retain, being released only in a few specific cases or only at the time of retirement. However, when buying a property, the FGTS can be used and many people use this money to fulfill their dream of owning their own home.

But do you know how to use your FGTS to buy a house or apartment? In this article, you'll find out everything you need to use your FGTS to buy your home. Follow along!

Who can use FGTS to buy property

If you want to buy a property using your FGTS, you need to know if you meet the following requirements: 

• Have years of work experience, which does not have to be continuous or with the same company;
• Do not have any property to your name in the city where you are buying;
• Do not have an active mortgage with the SFH (Housing Finance System);

What are the conditions of the property that can be purchased?

Now, check out the characteristics that a property must have so that you can buy it with FGTS:

• In all Brazilian states, the value of the property must not exceed R$1,500,00.00;
• To be used for the home of the person buying it;
• In the final assessment, full living conditions must be certified;
• Registered with the RI, with no records preventing its sale;
• It was not bought by the previous resident with FGTS less than 3 years ago.

Documentation required for purchase

To apply for the property, you need to present the following documents:

• FGTS account statement;
• Identification document;
• Work permit showing registration.
• Updated payslip;
• Statement from the management body or union for temporary workers;
• Income tax returns for the owner and spouse, if any;
• Marriage certificate, identity card of the spouse, if the marriage occurred after the financing contract;
• Certificate of registration of the marriage of the property.

When you can't use your FGTS to buy a property

It is not possible to use this benefit to buy non-residential property, or to renovate or increase the size of property you already own. It is also not allowed to use this amount to buy several unbuilt plots at the same time, to buy building materials or to buy property for family members, dependents or anyone else.

Buying a property using your FGTS is a way of facilitating access to a home of your own, while at the same time using the money that would theoretically remain idle for a long time until you retire. This way, you can use it to buy an asset that will only increase in value over time, giving this money a good destination.

Want to buy a property? It's ideal to pay attention to all the indices that can influence its value, and the INCC is one of the most important! Check out what the INCC is and how it influences the real estate market.