If you are looking to buy your first property and you are a member of the Private Pension System (SPP), you should know that you can have up to 25% of your accumulated fund in the Individual Capitalization Account (CIC) to pay the initial fee. According to the Superintendency of Banking and Insurance (SBS), until April of this year, more than 115,000 contributors made this withdrawal that amounts to a total of S/3,446 millions. Next, find out all the requirements and the steps to release this percentage of your AFP.
How many affiliates withdrew 25% of their AFP to buy a home?
According to SBS figures, a total of 115,609 affiliates withdrew up to 25% of the funds from their AFP CIC to purchase a home in the first four months of the year. Let us remember that said release can be made from July 2016 within the framework of Law No. 30478, which allows two purchase options: the payment of the initial installment and the amortization of the mortgage loan.
In this sense, 41,595 contributors used the 25% withdrawal from their AFP for the first type of purchase and in the case of the second, 74,014. In addition, affiliates of AFP Prima were those who made the most use of their pension funds to purchase a home (42,115), followed by AFP Integra (39,873), AFP Profuturo (25,777) and AFP Hábitat (7,884).
AFP withdrawal for home purchase: what are the requirements?
If you want to have up to 25% of your AFP funds, you must meet the following requirements. Remember that this benefit does not apply to the remodeling, renovation, expansion, improvement or subdivision of a property or to consolidate the mortgage debt.
- Not be the owner of a property acquired in a personal capacity.
- Not owning a home under the 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.
AFP withdrawal for home purchase: what are the steps I must follow?
If you are looking to withdraw 25% of the funds from your AFP to acquire a property, you must follow these steps:
- Go to the financial institution to request the mortgage loan and submit the Sunarp Property Index Search Report document. Next, your application will be evaluated and, if approved, you will be given the pre-conformity document.
- With the pre-conformity document, go to your AFP and request the provision of a percentage of your pension fund (up to 25%). Accordingly, your AFP will make the respective evaluation and, if favorable, will send a communication of origin to the financial institution within 10 business days.
- Once the disbursement order has been received by the financial institution, the AFP must transfer 25% of the funds to the financial system account. It is worth mentioning that in the case of two affiliates who are spouses, both may request 25% of their pension fund, either for purchase or amortization.
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