FGTS Rules Unified to Allow Use on All SFH Mortgages Up to R$2.25 Million

Overview

• The change takes effect immediately and permits using FGTS balances to buy, amortize, liquidate, or pay installments on any SFH loan for properties valued up to R$2.25 million.
• The move harmonizes treatment across contracts regardless of signing date, resolving the asymmetry created after the CMN raised the SFH limit in October and reducing legal risk flagged by lenders and the Central Bank.
• The FGTS board projects a limited budget impact, estimating roughly a 1% increase in fund movements from the change.
• Eligibility criteria are unchanged, including at least three years of FGTS contributions, no other active SFH financing, and use of the property as a primary residence.
• Older loans may require a new appraisal to confirm the property falls under the cap, and Caixa estimates about 52,000 contracts from 2021 to 2025 fit within the new value threshold.