Early redemption of PPR to pay off mortgage loan will be penalized in 2025.

In 2025, it will not be possible to withdraw money early from PPR to pay for a home loan.

The early redemption of Retirement Savings Plans (PPR) for mortgage payment will be penalized again in 2025, as the legislation suspending this penalty was not extended.

This possibility was introduced in 2022, as part of a series of measures to mitigate the impact of inflation on family income. The measure allowed for early withdrawal, without penalties, of retirement savings, education savings, and retirement/education savings plans to pay for mortgage payments, without the need to return tax benefits in the IRS.

At the end of 2023, lawmakers approved the extension of this temporary rule in the State Budget for 2024 (OE2024), allowing families to make partial or total withdrawals from their savings plans without any penalty or limit amount to pay housing loan installments or contributions to housing cooperatives until the end of this year.

With the absence of a new extension, this measure will no longer be in force in 2025. Therefore, early redemption of PPR will once again be subject to penalties, even when intended for the payment of mortgage installments.

According to the Notícias ao Minuto, Natália Nunes, coordinator of the DECO PROteste financial protection office, stated that in situations of financial difficulty, the use of PPR should be allowed to avoid defaults. However, she emphasized that the main purpose of these products is to create savings for retirement, an increasingly urgent need given the prospect of significantly reduced future pensions.

On the other hand, regarding the extension, in 2024, of the exemption from bank commissions for early repayments in variable-rate mortgage contracts, Natália Nunes praised the measure, although she criticized its temporariness. She argued that this exemption should be permanent, allowing consumers to repay loans at any time without additional costs. Nevertheless, she considered it positive that the measure is extended for another year.

Want to pay less for your mortgage? There are other options to relieve this monthly burden! Consider renegotiating and/or transferring your credit: Credit intermediaries from Poupança no Minuto find better solutions for you, through a service at no cost. Simulate how much you can save by transferring your home financing now: