Most of us consider owning our homes to be one of life’s most important milestones. Finally owning our home gives us a tremendous sense of accomplishment. However, this dream remains elusive to most Filipino workers because of the high costs of residential real estate. But this dream can be made possible through financing, either through banks or the Pag-IBIG.
The most accessible home financing is provided by the Home Development Mutual Fund which is popularly known as Pag-IBIG. It was first institutionalized in the 1970’s to answer the need for affordable shelter financing for Filipino workers.
To determine whether you are qualified to apply for a housing loan, consider the following questions:
If your answer is YES to all the preceding questions, then you are qualified to apply for a Pag-IBIG housing loan.
There are two modes of applying for a housing loan:
For a detailed listing of the documentary requirements for a Pag-IBIG housing loan, click here http://www.pagibigfund.gov.ph/benpro.aspx.
Members can borrow up to a maximum of SIX MILLION PESOS (P 6,000,000.00) which shall be based on the lowest of the following:
Loan to Appraisal value pertains to the appraisal of the property which shall be used as a collateral to the loan. A Pag-IBIG housing loan is a secured form of financing. As with other types of loans, a member promises to repay the loan based on the agreed payment schedule. The property which is subsequently purchased using the proceeds of the loan is then used as a collateral to back up that promise. When a member defaults on the loan, the collateral is foreclosed in favor of Pag-IBIG.
The ratio of the loan to appraisal value of the collateral shall be based on the loan amount applied for. For loans not exceeding P 1,250,000, the ratio used is 90%. For loans exceeding P 1,250,000 but not exceeding P 6,000,000, the ratio is 80%.
No, a Pag-IBIG loan shall not be allowed for the purpose of buying commercial properties. Housing loans shall be extended to members solely for the purpose of either:
The decision to purchase a family home is a major step towards the fulfillment of a dream. It, therefore, requires careful planning and execution. Let a Remax associate help you towards fulfilling your dream.