New FGTS modality can help you finance your own home

The way the FGTS is corrected has changed which should affect withdrawals and even home financing. Change should make the Guarantee Fund more advantageous for citizens. This week the STF approved the new form of correction of the FGTS  which ended up applauding the real estate market The Service Time Guarantee Fund can be used to finance real estate. In fact a new modality in this sense was recently created.

New FGTS Correction 

According to the decision of the Federal Supreme Court the correction will continue to be made by the Reference Rate (TR) plus 3% as has been done since 2017. In addition it was also decided to distribute profits to workers.

If the value according to TR + 3% is below inflation the adjustment will be made by the IPCA (Broad Consumer Price Index) As a result the concern of the real estate sector, which was the adoption of savings as a correction system ended up not being implemented.

According to Abranic Brazilian Association of Real Estate Developers the system approved by the STF should contribute to the sustainability of the construction sector 

Use of FGTS for property Financing

For some time now Brazilians have been able to use their FGTS account balance to finance properties This can happen through full or partial payment of the down payment for the full payment or amortization of the debt 

Today it is also possible to use the balance to make up the monthly income so the buyer could choose a property with a higher value. or you would even have the option of using the amount to cover part of the financing installment.

Purchase of higher value property

FGTS Futuro does not cover the entire value of the property value of the property only a part of it But from it the buyer could for example buy  a property of greater value and pay a smaller installment.

The Ministry of Cities itself gives an example a family with a monthly income of $2,000.00 and deposits of $160.00 per month into a FGTS account. if you will have a monthly installment of $440 with financing of around $100,000.

If they choose to use this resource they will have a 9% increase in financing reaching approximately $108 thousand. They amount exceeding 22% would be covered by resources from the Guarantee Fund.

For example currently if a person has a monthly income f $2,000 they can commit up to 25% of their income with this financing payment would be up to $500 Using the FGTS resource to make up the income this same person could have a payment of $600.

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