Since July 2016, members of the Private Pension System (SPP) have the benefit of having up to 25% of their accumulated fund in the individual capitalization account (CIC) of the AFP to be able to face the risk of homelessness.
In this sense, the contributors to the AFPs have the possibility of requesting this withdrawal only to pay the initial installment of the purchase of a first property -as long as it is a mortgage loan-, or to repay a mortgage loan that has been used for the acquisition of a home, in accordance with Law No. 30478.
It is important to mention that for both cases, the credit must be granted by an entity of the financial system. In addition, the affiliate who wants to access this benefit must not have been the owner of a property acquired in a personal capacity.
Jorge Carrillo Acosta, a professor at the Pacífico Business School, specifies that a quarter of your pension funds can only be accessed if the member will acquire their first home. In other words, it will not be used to buy a beach or country house or to do business with the property.
Beneficiaries
According to information from the Superintendency of Banking, Insurance and AFP (SBS), at the end of February this year, a total of 114,988 affiliates had withdrawn up to 25% of their AFP to purchase a home.
In detail, 73,769 contributors used the withdrawn fund to repay their mortgage loan, while 41,219 affiliates used said money to pay the initial installment of the mortgage loan.
Likewise, according to data from the SBS, a total of S/3,427 million has been withdrawn from the AFPs since July 2016.
The members who have requested access to this benefit the most are those between the ages of 36 and 45 (see infographic).
The mortgage credit is only given to those people who do not have any property title in their name. Photo: diffusion
Arturo García, professor of Finance at ESAN Graduate School of Business, points out that this rule, which has been in force for several years, allows any affiliate to use these resources only to buy a home, which is a fixed asset and a good investment.
However, the professor recommends that affiliates make use of this benefit as long as they do not have savings, since by withdrawing their funds they are reducing their retirement pension.
“If I don’t currently have savings to access a down payment, I would require this facility, but if I had savings that could pay the down payment, I shouldn’t use this law,” suggests the teacher.
For his part, Carrillo Acosta indicates that it is a good option, since money is not being wasted, but rather it is a lasting good. In addition, if the mortgage loan is amortized, less interest is paid over time.
Steps to request 25% of the AFP
If you want to withdraw 25% of the AFP to buy a home, the affiliate must approach a financial institution to request a mortgage loan. If you obtain said loan, you will receive a “Preconformity Document”
With this document, the affiliate must approach his AFP to request a quarter of his funds. The AFP will evaluate the contributor and will contact the bank if the request is made.
Finally, the AFP makes the disbursement of the approved amount directly to the financial entity in 10 business days.
The word
Arturo García, professor at ESAN Graduate School of Business
“If you have savings that could pay an initial fee, I would tell you not to access this facility. If you do not have the down payment and have the opportunity to buy a property, you could make use of this law”.
Source: Larepublica
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