Affiliates to the Private Pension System (SPP) should know that they have the possibility of requesting part of their accumulated fund in the AFP if they are interested in buying a living place. This option was regulated in July 2016 through the Law No. 30478 and to this day it is still valid. How much can you dispose of your private fund and what are the steps to withdraw this money? We tell you here.
For this, it is important to specify that This benefit applies only to the purchase of a first property or the amortization of a mortgage loan. Also, the contributor who wants to access this resource must not have been property owner purchased personally. Nor does it apply to renovate, remodel, expand a property, or to consolidate mortgage debt.
The affiliate who wants to access this option must not be the owner of a property. Photo: composition LR/Andina
AFP: How much can I withdraw to buy a home?
The beneficiaries of Law No. 30478 are all the contributors to the Private Pension System, who can have up to 25% of their pension fund for the acquisition of the property, at any time of its affiliation.
According to the Superintendency of Banking, Insurance and AFP (SBS), at the end of February 2023, close to 115,000 members They have withdrawn up to 25% of their AFP to buy a home.
AFP: steps to request a 25% withdrawal
In principle, the affiliate must know the exact value of his pension fund and the amount that he can request from the AFP.
- The affiliate must go to a financial institution and apply for a mortgage.
- The financial entity will deliver a “Pre-conformity document”.
- With this document, the member asks the AFP for the disposition of a percentage from your pension fund (up to 25%).
- the AFP evaluate the request and, if favorable, it will send the financial institution a “Communication of provenance” within a period of 10 business days.
- With the approval of the mortgage loan for the purchase or amortization of the first property, the AFP makes the disbursement of the approved amount directly to the financial institution within 10 business days.
According to the SBS, most of affiliates that has withdrawn 25% of their private funds for this modality are those whose ages range from 36 to 45 years. In the age range of 26 to 30 years, close to 8,000 affiliates had that balance.
Source: Larepublica
Alia is a professional author and journalist, working at 247 news agency. She writes on various topics from economy news to general interest pieces, providing readers with relevant and informative content. With years of experience, she brings a unique perspective and in-depth analysis to her work.
