Own home: the 3 steps to withdraw 25% of your AFP to buy a home

The desire to have a own house It is one of the main objectives of Peruvian individuals and families. However, it also represents a challenge, since it is necessary to have sufficient savings to take the first step towards purchasing a home.

For this reason, since 2016, a valuable opportunity has opened up thanks to the Law No. 30478 and the provisions established by the Superintendency of Banking, Insurance and AFP (SBS). This regulation allows up to 25% of the AFP pension fund to be used in the purchase of a first home, thus facilitating the path to fulfilling the dream of having one’s own home.

What does Law No. 30478 say about the withdrawal of AFP?

Law 30478 states that this benefit is available to all AFP members, giving them the possibility of withdrawing up to 25% of the funds accumulated in their individual capitalization accounts (CIC) to cover the initial payment of a mortgage loan intended for purchasing your first home.

It is specified that this 25% of the AFP fund can also be used to amortize a mortgage loan that has been used for the acquisition of a property.

It is important to note that this rule does not allow the use of these resources for activities such as renovation, remodeling, expansion, improvement or subdivision of a property or for the consolidation of mortgage debt.

Requirements to withdraw 25% of the AFP

• You must not have owned, currently or in the past, any property acquired in your personal capacity.
• You must not have been the owner, currently or in the past, of any property under a community partnership regime.
• You must not be or have been a co-owner of a property with a participation of 50% or more, which is registered or registrable in the Sunarp Property Registry.
• You must not be the owner, either individually or under a community partnership regime, of a mortgage loan or have the position of co-debtor with a responsibility of 50% or more on a property registered or registrable in the Property Registry of the Sunarp.

The 3 steps to follow to request 25% of the AFP

1. Mortgage loan application to the bank:
   • The individual seeking a mortgage loan approaches a bank and submits his or her application.
   • The bank reviews the application and verifies whether the applicant meets the legal requirements, including the submission of the Sunarp Real Property Index Search Report document.
   • If the application is approved, the bank issues a ‘pre-conformity document’ to the applicant.
2. Request to withdraw funds from the AFP:
   • With the ‘pre-conformity document’ in hand, the applicant contacts their pension fund administrator (AFP) to request the withdrawal of up to 25% of their pension fund.
   • The AFP reviews the request and, if accepted, sends the bank a ‘communication of origin’ within 10 business days.
3. Disbursement of funds by the AFP:
   • Once the mortgage loan is approved for the purchase or amortization of the first home, the AFP directly transfers the approved amount to the bank within a period of 10 business days.