Thousands of affiliates to the Private Pension System (SPP) are awaiting the eventual approval of a seventh AFP withdrawal. In the Economic Commission of the Congress rest eight legislative projects referred to this issue; however, they do not record any progress in their debate. Given this, the contributors they should know that they have an alternative to dispose of their funds if they are thinking of buying a property. How much can they withdraw from their AFP and what requirements must they meet? We tell you here.
This benefit gives the possibility of having up to 25% of the fund accumulated in the Individual Capitalization Account (CIC) to pay the initial fee for the purchase of a first property, provided it is a mortgage credit or for pay off a mortgage used for the buying a home. In both cases it must be granted by a financial institution.
What are the requirements to withdraw up to 25% of my AFP?
It is important to specify that this benefit does not apply to the repair, remodeling, expansion, improvement or subdivision of a property, nor for the mortgage debt consolidation. To have up to 25% of the funds, AFP affiliates must meet the following requirements:
- Not be the owner of a property acquired in a personal capacity.
- Not owning a property under a community property regime.
- Not be a 50% or greater co-owner of a property registered in the Sunarp Land Registry.
- Not being registered in the register of affiliates for the use of up to 25% of the pension fund for the purchase of a first property.
To date, there are two proposals in Congress that propose a withdrawal of up to 50% for the purchase of real estate. Photo: composition LR/Andina
How to dispose of up to 25% of my pension fund?
Step 1: approach the financial institution:
Request the mortgage loan and submit the Real Estate Property Index Search Report document Sunarp. The financial institution will evaluate your application and, if approved, will provide you with the pre-compliance document.
Step 2: approach your AFP
With the aforementioned document, request your AFP the disposition of a percentage of your pension fund (up to 25%). Your AFP will evaluate your application and, if favorable, will send a notification of origin to the financial institution within a period of 10 business days.
Step 3: payment of the initial installment or amortization of your mortgage loan
Having received the disbursement instruction from the financial institution, the AFP will proceed to transfer the funds to the account of the financial system.
It is important to note that, in case two members are spousesboth could request 25% of their pension fund for the purchase or amortization, as long as it is the first property of both.
AFP: What retirement projects are there for the purchase of a property?
Within the list of eight projects requesting a new AFP withdrawal, there are two initiatives related to the purchase of a property. the congresswoman Patricia Juarez presented on March 22 a proposal that allows affiliates to dispose of up to 50% of their fund to buy a home or pay off a mortgage.
This initiative coincides with what is proposed by legislator José Luis Elías de Podemos, who proposes that AFP affiliates can withdraw up to 50% of their funds to buy or pay off the transaction of your first property or housing, and to pay debts contracted with the financial system.
Source: Larepublica
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