FGTS Council allows the use of the fund for all properties up to R$ 2.25 million

With the change, all housing financing contracts eligible under the Housing Finance System (SFH) and whose property is valued at up to R$ 2.25 million can use the FGTS to pay off, amortize, or pay part of the installments. The change was presented by the superintendent of the Brazilian Association of Real Estate Credit and Savings Entities (Abecip), José Aguiar, and unanimously approved by the FGTS Council. The alteration resolves the impasse created by the new home financing model announced by the government in October, which set a new ceiling for the fund’s use. This is because the measure stipulated that the use of the FGTS was only guaranteed for properties up to R$ 2.25 million in loans contracted on the date the new model came into effect on October 10. As a result, properties financed between June 12, 2021, and October 9, 2025, were excluded from the new rules and were unable to use the fund. ‘[As the text is], a person who signed a contract until June 11 is eligible to use the fund and offset [the financing], but a neighbor who bought on June 12, even under the same conditions, cannot use the fund because the wording states that he is not eligible for the new ceiling in force,’ he explained.