How to use your FGTS to buy your first property

Achieving the dream of home ownership is one of the greatest achievements of adult life and for many people the FGTS (Severance Indemnity Fund) can be a great ally on this journey. But did you know that it's possible to use this accumulated resource to buy, make a down payment or write off installments on the financing of a residential property?

In this article, we explain how FGTS can be used to buy your first property, what the rules are and how this benefit can make it easier for you.

In what situations can I use the FGTS to buy a property?

The FGTS balance can be used in three main ways:

1. Making a down payment on a property.

2. To amortize or pay off housing loan installments.

3. Reduce the value of the installments for a period (usually 12 months).

This applies to both new and used properties, as well as units on the drawing board (under construction), as long as they are located in an urban area and intended for owner-occupied housing.

What are the requirements for using FGTS for your first property?

In order to use your FGTS to buy your first property, you need to meet certain criteria established by Caixa Econômica Federal:

- Have at least 3 years of formal employment under the FGTS system (consecutive or not);

- Do not own another residential property in the municipality where you want to buy;

- No other active financing in the Housing Finance System (SFH);

- The property must be valued at up to R$ 1.5 million;

- The property must be urban, residential and owned by the FGTS holder.

How is the process carried out?

The process can vary according to the type of purchase (direct with the developer, by financing, on the ground...), but generally follows these steps:

1. Consultation of the FGTS balance, which can be done through the "FGTS" app or Caixa's website;

2. Analysis of personal and property documentation;

3. Formal request for the use of the FGTS from the bank that will be providing the financing;

4. Signing of the contract, with the FGTS amount being used directly in the operation.

If you are buying a property under construction, for example, it is common to use the FGTS as part of the down payment or to make up the financing in order to reduce the value of the installments.

Extra tip: FGTS + government subsidies

If you fall into the income brackets of the government's housing programs (such as the former "Minha Casa, Minha Vida", now "Minha Casa, Minha Vida - Faixa 1 a 3"), the FGTS can be used together with subsidies, further increasing your purchasing power.

The FGTS could be the key you need to get your plans off the ground and buy your first property. Whether it's reducing the down payment or facilitating financing, this resource is a worker's right and should be used wisely.

At NISS, we have a specialized team to help you through the whole process, with options of properties ready and under construction that fit the criteria for using the FGTS.

Contact our consultants and find out how to turn your FGTS balance into a new home!