Using FGTS to buy a home in Brazil: rules and how to do it

FGTS can be used to buy your own home, make a down payment, pay down or pay off a mortgage and cover part of the installments. The main requirements are at least 3 years of work under FGTS, adding up all jobs, and not owning another residential property in the city where you work or live (Law 8,036/1990, art. 20).

Quick summary

• Uses: cash purchase, down payment, paydown, payoff and part of the installments.
• Time: 3 years of work under FGTS, continuous or not.
• Property: urban residential, for the worker's own home, within Housing Finance System (SFH) rules.
• Restriction: no other residential property in the city, and no active SFH financing anywhere in the country.
• Where to apply: at the lending bank or Caixa, with the property documents.

What it can be used for

1. Cash purchase or down payment on a new or used property.
2. Paying down the balance, reducing the term or installment.
3. Paying off the mortgage.
4. Covering part of the installments, up to 80% of each, for up to 12 months.

There are minimum intervals between uses for paydowns. The bank will explain the conditions of your contract.

Birthday withdrawal and home buying

Anyone who joined the birthday withdrawal (saque-aniversário) can use the available balance, but part of it may be blocked if it was pledged as loan collateral. Check the free balance in the FGTS app before negotiating.

Frequently asked questions

Can I use someone else's FGTS to buy my home?

No. Each worker uses their own FGTS. A couple can combine balances if both are buyers of the property.

Can FGTS be used for a commercial property or a plot of land?

Not to buy only land or commercial property. There are specific options for construction.

Can someone who owns a property in another city use FGTS?

Yes, if the property is outside the city where they work or live and its metropolitan area, and there is no active SFH financing.

Calculate: use the FGTS calculator: balance and penalty — free, no registration.

Read more in this series

• FGTS: checking and withdrawing
• CLT payroll loans and FGTS collateral
• Retired and still working
• Index: complete guide to labor rights

Topic: this guide is part of Pay and benefits, with all the guides on the subject.