Guide on Pag-IBIG Housing Loan vs. SSS Housing Loan Offers for Members
PAG-IBIG HOUSING LOAN vs SSS HOUSING LOAN – Here are two (2) excellent options you may consider if you plan to push through with your dream house.
Purchasing a residential property requires a huge amount of cash. Meanwhile, you do not need to wait for years, decades, or all your life to be able to get a house that you can call your own. There are entities that are ready to help you achieve your dream house.
In the Philippines, two (2) of the state entities that are willing to help those individuals who want to achieve their dream house now and just pay for it afterwards are the Pag-IBIG Fund and the Social Security System, more popularly called SSS.
There are huge differences between the Pag-IBIG Housing Loan and the SSS Housing Loan offers. Thus, it is best to know their features to check which of the two (2) loan offers best suits your needs.
Here is a comparison of the housing loans offered by the Pag-IBIG Fund and the SSS:
Loan Purposes
Pag-IBIG Housing Loan
- Purchase (plus cost of transfer) of residential lot or adjoining residential lots of up to a maximum of 1,000 sq.m.
- Purchase (plus cost of transfer) of residential house & lot, townhouse or condominium unit
- House Construction
- Home Renovation
- Refinancing of an existing housing loan
- Combined Loan Purposes
SSS Housing Loan
- the repair of dilapidated and structurally unsafe housing units
- construction of concrete fence and steel gate
- extension or expansion and enhancement of economic and aesthetic value of an existing housing unit
- completion of an occupied bare house
- installation of deep well and motor pump
Qualifications
Pag-IBIG Housing Loan
- at least twenty-four (24) monthly membership savings
- 65 years old and below at the date of application and not more than seventy (70) years at maturity of the loan
- with a legal capacity to encumber real property
- with the ability to pass satisfactory background / credit and employment / business checks of Pag-IBIG Fund
- without outstanding Pag-IBIG Short-Term Loan (STL) in arrears at the time of the loan application
- without Pag-IBIG Housing Loan that was foreclosed, cancelled, bought back due to default, or subjected to dacion en pago
SSS Housing Loan
- at least 36 monthly contributions posted with 24 continuous contributions before the loan application
- not older than 60 at the time of application
- has no existing SSS housing loan
- has not been granted final SSS benefits
- no SSS or NHMFC repair and/or improvement loan
Loanable Amounts
Pag-IBIG Housing Loan
Up to P6 million based on the following factors:
- Borrower’s actual need;
- Borrower’s desired loan amount;
- Borrower’s loanable amount based on his/her capacity to pay
- Loan-to-Appraised Value ratio
SSS Housing Loan
at least 70% of the appraised value of the collateral but not more than 90% of the appraised value or P1 million
Interest Rate
Pag-IBIG Housing Loan
- 1-Year Fixing — 5.750%
- 3-Year Fixing — 6.250%
- 5-Year Fixing — 6.500%
- 10-Year Fixing — 7.125%
- 15-Year Fixing — 7.750%
- 20-Year Fixing — 8.500%
- 25-Year Fixing — 9.125%
- 30-Year Fixing — 9.750%
SSS Housing Loan
9% per annum
Loan Terms
Pag-IBIG Housing Loan
Loan is payable up to 30 years
SSS Housing Loan
Loan is payable from five (5) years up to 20 years in multiples of 5
Requirements
Pag-IBIG Housing Loan
For the application, there are Pag-IBIG Housing Loan requirements you must submit to the Fund.
SSS Housing Loan
With regards to the SSS Housing Loan requirements, this is quite long thus, it is important to check on the list.