FGTS can now be used to make six home installments

Excellent news. Borrowers who are late on their home finance installments get another negotiation option. According to official information, they will be able to use money from the Stopover Compensation Fund (FGTS) to settle up to six overdue installments.

This is a movement that has already been launched since last year, but there are changes in circumstances. Until December 31, 2022, citizens could use FGTS funds to renegotiate up to 12 overdue installments. As of 2023, the number is down to six. The decision was made by the Board of Trustees of the Chapter Compensation Fund.

In any case, it is important to remember that this change ends up being better than the official recording of the rules. Usually, citizens can use FGTS funds to negotiate up to three late financing installments. In 2022, this number increased to 12, and in 2023 it decreased to six, that is, despite the decrease, the permission is still higher than indicated in the original rule.

Originally, citizens who needed to use FGTS to negotiate more than three late payments needed court support. However, since April last year, this system has changed and the Board of Trustees has decided to allow an increase in the number of deposits.

It should be noted that these renegotiation changes do not affect the other rules. The Board of Trustees chose to maintain systems of settlement, amortization, or prepayment of a portion of non-deferred installments. This entire system follows traditional standards.

Step by Step

According to information from the Board of Trustees, more than 80,000 Brazilian families are more than three months in arrears. They are citizens who, in theory, could take the money from the FGTS to negotiate that debt.

Of that total, it is estimated that more than 40,000 have an active Stop Compensation Fund account. So they are citizens who can use this money to at least reduce their arrears.

But how is this procedure performed? According to information from Caixa Economica FederalThe first step is to search for the bank in which the citizen will finance his home.

At the financial institution, the individual will have to sign some kind of authorization document to transfer the linked FGTS account. The idea is that this office allows one to discount up to 80% of each installment with this money. Always remember that the maximum is six late installments.

Also note that this process is only valid for financing properties with a value of less than R$1.5 million. In addition, people who have used FGTS credit to reduce the outstanding balance will not be able to use this fund to settle unpaid installments before the end of this period.

What is FGTS?

Separation Compensation Fund (FGTS) is a type of credit paid monthly by employers to their employees. The citizen can only use the amount at specific times, such as cases of unfair dismissal, for example.

With this new approval from the Board of Trustees, the FGTS gains another function, and from now on it can also be used to cover delays in mortgage financing.