In a perfect world, you’ll be able to buy your dream house in cash. But if you don’t have millions of pesos in your bank account, don’t worry. You can still buy your dream house through a Pag-IBIG housing loan if you’re an active Pag-IBIG Fund member.
How Much Can I Borrow from Pag-IBIG?
Pag-IBIG offers a maximum loanable amount of PHP 6 million. The amount you can borrow is based on the lowest amount among the following factors:
- Actual Need. This refers to the Selling Price, Projected Construction or Improvement Cost, or Outstanding loan balance from Bank or Financing Institution.
- Capacity to Pay. This is based on submitted proof/s of income [e.g. Certificate of Employment and Compensation (CEC) or ITR]
- Loan-to-Appraisal Value. An example of this is the appraisal of the property subject of the loan.
Is my Pag-IBIG Housing Loan Amount based on my contributions?
Your Monthly Savings or contributions is not a basis for your approved loanable amount for Pag-IBIG Housing Loan. However, Pag-IBIG encourages its members to upgrade their monthly savings to earn dividends that are tax-free and government-guaranteed.
You may also upgrade your contributions to Pag-IBIG if you plan to take a Pag-IBIG Multi-Purpose Loan or Calamity Loan. If you're approved for these short-term loans, you can borrow up to 80% of your total accumulated savings in Pag-IBIG. The higher the amount of your monthly savings, the higher the amount you can borrow.
What is the Basis of Capacity to Pay?
Based on the existing guidelines on Pag-IBIG Fund End-User Home Financing Program, the Capacity to Pay shall be based on 35% of your Gross Monthly Income for loans up to PHP 6 million. To prove that you can pay the amount that you need to borrow, you should submit the requirements depending on your type of employment. Locally employed, self-employed, and OFW individuals have different loan requirements that need to be approved first before you can receive your housing loan.
How many co-borrowers do you have?
In case the loanable amount based on your Capacity to Pay is not enough, you can get a co-borrower. Keep in mind that Pag-IBIG only allows up to three co-borrowers for a single loan. You and your co-borrowers will be liable for the entire Housing Loan obligation.
Here are the eligibility requirements for co-borrowers:
- Must be an active Pag-IBIG member
- Must have at least 24 mos. savings (lumpsum payment is allowed for Home Loan borrowers)
- Must have no Pag-IBIG housing loan that was canceled, foreclosed, bought back, or voluntarily surrendered
- Must not be more than 65 years old at the date of the loan application.
What is the loan-to-appraisal value ratio?
This is the ratio of your loanable amount to the appraised value of the subject property/collateral. In simpler terms, this is the value of the property you’re eyeing to buy.
For loans up to Economic Housing Limit, up to 95% of LTV will be considered while for loans over the Economic Housing Limit up to PHP 6 million, the LTV ratio is up to 90%. This may be adjusted depending on the result of the Borrower’s Evaluation System (BES).
Where Do I Pay Pag-IBIG Housing Loans?
Once you’ve secured your Pag-IBIG housing loan, remember that you can pay your Pag-IBIG housing loan with Coins.ph. Simply go to Pay Bills and click Pag-IBIG Housing Loan Amortizations under the Government category.
