You’ve found the perfect home. You are gainfully employed and feel that you can afford to pay monthly instalments on your home loan. But how much can you borrow from PagIBIG?
It would serve you best to know how much you can loan from Pagibig to enable you to plan ahead and choose the right home that will fit your budget.
Based on PagIBIG Circular 310, following are the guidelines for determining a member’s loanable amount.
A qualified Pag-IBIG member shall be allowed to borrow an amount up to a maximum amount of Six Million Pesos (P6,000,000.00) which shall be based on the lowest of the following:
1. The member’s actual need. This pertains to the amount the member needs to borrow.
2. The member’s loan entitlement based on his capacity to pay.
2.1 All housing loan borrowers shall be evaluated based on their capacity to pay, which shall be supported by the following documents:
a. For locally employed any of the following:
a.1 Latest Income Tax Return (ITR) for the year immediately preceding the date of loan application, with attached W2 form, stamped received by the BIR.
In view of Revenue Regulation 2-98, employees receiving purely compensation income may instead submit the BIR Form 2316 or the Certificate of Compensation Payment/Tax Withheld filed by their employers with the BIR.
a.2 Notarized Certificate of Employment and Compensation (employer’s format)
For government employees, both the Notarized Certificate of Employment and Compensation, and latest one (1) month payslip shall be required.
a.3 Other documents that the Fund may prescribe.
b. For self-employed.
Income Tax Return and Audited Financial Statements and Official Receipt of tax payment from bank, DTI Registration, Mayor’s Permit.
c. For OFW members.
c.1 Employment Contract (EC), which shall be supported by an English translation if written in a foreign language other than the English language.
c.2 Certificate of Income duly certified by the employer.
Proofs of income certified/initialled as true copy of the original by the assigned Pag-IBIG Information Officer shall be accepted for evaluation.
2.2 A member’s loan entitlement shall be limited to an amount for which monthly repayment:
a. shall not exceed 35% of the borrower’s gross monthly income for loans not exceeding P1,250,000.00;
b. shall not exceed 30% of the borrower’s gross monthly income for loans exceeding P1,250,000.00.
In case of tacked loans, the individual gross monthly income of at most 3 borrowers shall be considered.
2.3 For government employees who will be paying their amortization through salary deduction, their Net Take Home Pay must not fall below the minimum requirements as prescribed by the General Appropriations Act.
2.4 A maximum of 3 qualified Pag-IBIG members may be tacked into a single loan which is secured by the same collateral; provided they are related within the second civil degree of consanguinity or affinity. However, other co-borrowers not related to the principal borrower may likewise by allowed, subject to the following:
a. Approval of the HDMF Branch Manager or higher level of authority; or
b. Said co-borrower shall be a co-owner of the property such that the Original Certificate of Title (OCT), Transfer Certificate of Title (TCT) or Condominium Certificate of Title (CCT) is registered in his name and in the name of the principal borrower.
3. Loan to Appraisal Value
3.1 The ratio of the loan amount to the appraisal value of the collateral shall be based on the following:
Loan Amount Loan to Appraisal Value Ratio
Up to P1,250,000.00 90%
Over P1,250,000.00 to P6,000,000.00 80%
3.2 For developer-assisted housing loans up to P400,000, the loan-to-appraisal value ratio shall be 100%; provided that the developer’s License to Sell is for socialized housing project and the borrower’s housing loan purpose is for the purchase of a residential unit.
3.3 The Loan-to-Appraisal Value Ration may be adjusted depending on the result of the Borrower’s Evaluation System (BES).