Pag-IBIG Housing Loan Computation
Each one of us always dream of buying our own home. Well, if we would look back, buying your own house is a cash to cash basis. You have to give a full payment or a less than a year to pay it in full. But now a days, it’s so easy to get loans from Banks and financing program like Pag-IBIG that could give us the flexible payment schemes.
There is a higher chance that we could have our own dream home. Pag-IBIG members can loan up to a maximum of 6 million pesos depending on its Monthly Membership Contribution.
The higher your contributions are, the higher the loan amount you can take out.
For reference, this table will help in determining how much Pag-IBIG Housing Loan you can avail with your monthly contribution:
Co-Borrowers in Pag-IBIG Housing Loan
Pag-IBIG allows up to three (3) co-borrowers for a single loan and they should all be related to you within the second civil degree consanguinity or affinity.
Pag-IBIG Loan Terms
Loan-To-Appraisal Value Ratio
This refers to a specific percentage of the property that your prospecting to buy. For every cost of the property, there is a certain percentage that Pag-IBIG may allow you to loan the amount.
For example, if the property costs Php 1,000,000 which Pag-IBIG can allow you to loan only 90% (0.90) of the amount.
Php 1,000,000 x 0.90 = Php 900,000
Php 900,000 is the loanable amount you can request in the Pag-IBIG Housing Loan.
To find out how much you can barrow based on your income, preferred repayment term, fixed pricing period, and the estimated value of the property, you may check out the Pag-IBIG Loan Calculator. It will give you the results you need.
This is another term for Down Payment. The advantage of paying higher equity on the property, the more serious you are in paying the loan.
If you paid 30% of the property before getting a loan, it means that you own 30% of the property; the other 70% is owned by the lender. Once you pay your loan, your equity also grows over time.
This also refers to as Terms of Payment that can let you borrow up to 30 years. It would basically depend on your age,
the younger you are, the longer you can pay.
So, if you are 25 years old now and would like to loan up to 30 years, its still valid. Because,
25 (age) + 30 (years repayment) = 55 years old
The maturity of the loan will end when you are 55 years old which qualify for the Eligibility for a Pag-IBIG Housing Loan, that you should not be more than 70 years old at the loan maturity.
While if you are 45 years old and get your loan, you cannot apply for the maximum repayment period. Because,
45 (age) + 30 (years repayment) = 75 years old
You are already above 70 years old at the loan maturity. But you can still apply for the loan where the repayment period should be 20 years or below.
45 (age) + 20 (years repayment) = 65 years old
The loan maturity will end when you are 65 years old.
Take note that:
the longer the repayment period is, the higher amount you are paying.
Fixed Pricing Period
This is also known as the Interest Rates that changed in time. It let’s you choose the interest that can match your loanable amount.
Let’s say you want to loan for 30 years, and you choose the lowest interest rate which is 1 year. This means that the interest rate will only last for a year.
In the 2nd-30th year, the interest rate could be higher or lower rates depending on the update.
So, if you choose 10 years, the interest rate will be the same for the rest of 10 years. In the 11th year, there is a possibility that it will be higher or lower depending on the update.
The fixed pricing period is somehow you are locking-in the interest rate to that year.
If your terms of payment are 10 years and you choose interest rate for 10 years, it means you are locking-in your loan to have the same interest rate for the whole duration of your loan. Even if the interest rate goes up on the 5th year, your interest rate will be the same since you locked it up to 10 years.
the higher the interest rate you choose, the higher the Monthly Amortization would be.
These are the terms that you should be familiar with since you will be using them all the time when you need to calculate your Housing Loan.
There are three (3) ways you can calculate your Pag-IBIG Housing Loan:
1. Calculate required Income based on desired Loan Amount
You already know the price of the property that you want to buy, but you aren’t sure of how much should be your Monthly Income? The Pag-IBIG Loan Calculator will calculate the required Monthly Income that you need to request for the loan. It will give you the estimated Monthly Amortization that you will be paying every month once the loan was approved and the Gross Monthly Income Requirement that should show in your proof of income.
2. Calculate Loanable Amount based on monthly Income
You might be thinking of borrowing, but you aren’t sure if your income is capable. The Pag-IBIG Loan Calculator can also calculate how much can you loan based from your Gross Monthly Income. It would give you the estimated Loanable Amount that you can request.
3. Calculate Loanable Amount based on the value of the property
You found the property you want to buy, and you think you are eligible for a Housing Loan in Pag-IBIG or you have been paying for a property and you want to continue it through a Pag-IBIG Housing Loan. The Pag-IBIG Loan Calculator can compute for the Maximum Loanable Amount that you can loan from Pag-IBIG, the estimated Gross Monthly Income Requirement that should show in your proof of income and the estimated Monthly Amortization that you will be paying every month once the loan was approved.
Use the Pag-IBIG Calculator to calculate the loan base in your needs.
Interested to get a Pag-IBIG Housing Loan?
Read our complete Step-by-Step Guide to Pag-IBIG Housing Loan Application [Updated]