“Sa Pag-IBIG ang pinaghirapan may katuparan”
Republic Act No. 9679 states that membership to the fund shall be mandatory for the following: If your monthly compensation is 1,500php and below the percentage of monthly compensation from the employee share is 1% while the employer share is 2%. If your monthly compensation is over 1,500php then the employee and employer share will be both 2%. As well as if your monthly compensation is 5,000php and above, both employee and employer share will be 100php. Every Filipino citizen that is employed is paying their Pag-IBIG contribution every month. Pag-ibig benefits include savings, short term loans and housing loans.
Who should register with the Pag-IBIG fund as members? First are all employees, workers, professionals, officers and companies who are compulsorily covered by the SSS and GSIS. Second are those uniformed members of the Armed Forces of the Philippines, the Bureau of Fire Protection, the Bureau of Jail Management and Penology, and the Philippine National Police. Third are those Overseas Filipino Workers (OFWs) and lastly those Filipinos who are employed by foreign-based employers, whether deployed locally or abroad.
Most Filipino citizens use the benefit of Pag-IBIG housing loan because Pag-IBIG offers lower interest rate to their members. Consumers who send inquiries on the real estate projects are frequently asking if the loan can be registered under Pag-IBIG. Since they are paying their mandatory contribution every month, citizens would want to use it for their benefit also. This 2014 they released a TV commercial featuring Atty. Darlene Berberabe, President of Pag-IBIG fund that announces lower interest rate to affordable loans and regular housing loans. The TV commercial announces that affordable loan are now for as low as 4.5% interest rate while regular housing loan is now down by 40%, from 11.5% to 6.9% interest rate.
Lancaster New City under the developer Profriends offers two payment schemes for their home buyers. First option is In-house financing wherein the buyer will apply their loan to the developer. With this kind of financing, it has a higher interest rate but has easier requirements. Second option is bank financing, this is the standard loan process used by many home buyers. In which the interest rate is for as low as 8% but is more precise in requirements. Though Profriends accepts Pag-IBIG financing, it is still not an official payment scheme. The home buyers who will avail Pag-IBIG housing loan will start as in-house financing then it will be a self application loan. Because of high public demand, Profriends have thought of partnership with Pag-IBIG and planned of launching their third payment scheme which is Pag-IBIG housing loan.
Dated August 22, 2014, the preliminary briefing of Pag-IBIG financing in Lancaster New City Zone 1 of Kensington 19 has officially launched. The scope of the financing will be Catherine and Diana Townhouses which will apply to new reservations from August to December 2014. The Eligibility Requirements of Pag-IBIG financing in Lancaster New City are as follows:
– Active Pag-IBIG membership with at least 24 months contributions
– New members and existing members short of 24 months contribution requirement must remit required savings in lump sum.
– To avail of higher loans, members must upgrade contributions according to prescribed guidelines.
– Not more that 65 years old upon loan application and not more than 70 years old upon loan maturity.
– With legal capacity to acquire property and must pass Pag-IBIG Fund’s background/credit and employment/ business checks.
– No outstanding Pag-IBIG loan in arrears at time of application.
– No loan that was foreclosed, cancelled or bought back.
While the Tacked Loans are those with maximum of three (3) qualified members may jointly apply for a single housing loan and all co-borrowers who will be jointly and severally liable for the loan. The loan amount will have criteria such as Member’s Actual Need (Total Contract Price less Downpayment), Loan-to-Value Ratio such as loan amount of up to P1.25M with loan to value ratio of 90%. And a loan amount of over P1.2M will have a loan to value ratio of 85% and Capacity to Pay such as monthly amortization must not exceed 35% of the borrower’s gross monthly income for loans up to P1.25M and 30% for loans over P1.25M. Meanwhile on the Loan Term of the financing, Maximum of thirty (30) years and shall, in no case, exceed the difference between the borrower’s present age and age seventy (70). The financing terms are as follows: Php 10,000 for the Reservation Fee, the Down payment/Equity is 10% of the Total Contract Price. Down payment Term will be 12 months thru Post dated Checks and Legal Miscellaneous Fees is 10% of Total Contract Price.
Image 1 – Loan Entitlement.
Interest Rate will be based on prevailing Pag-IBIG pricing framework and re-priced depending on buyer’s selected re-pricing period. The interest rates will be: 6.985% in 3 years, 7.825% in 5 years, 8.775% in 10 years, 9.385% in 15 years, 9.675% in 20 years, 10.000% in 25 years and 11.375% in 30 years. You can check the HDMF Online Amortization Calculator on their website: http://www.pagibigfund.gov.ph/amort/calcv1.aspx. Furthermore, the Income Documents are as follows: for Locally Employed are Latest ITR with attached W2 stamped received by BIR or BIR Form 2316 (for employees receiving compensation income), Notarized Certificate of employment and Compensation (employer’s format) plus 1 month pay slip (if government employee) and other income documents that Pag-IBIG may prescribe. While for Self-Employed are ITR/ Audited Financial Statements/ OR of tax payment to bank and DTI Registration/ Mayor’s Permit. Whereas for OFWs are Employment Contract (EC) (with English translation if written in foreign language) and Certificate of Income duly certified by employer.
Image 2 – ProFriends Pagibig Financing Sample Computation.
Image 3 – Pagibig Financing Calculator.
The Documentary Requirements or the Documents for accomplishment/signature of Buyer are the following. Under Pag-IBIG Forms are Housing Loan Application (HLA), Contract to Sell (CTS), Special Power of Attorney (SPA), Deed of Assignment of CTS with SPA, Health Statement Form, if applicable, Authorization to Conduct Credit Background Investigation, Promissory Note, Loan and Mortgage Agreement (LMA), Deed of Absolute Sale (DOAS), Certificate of House & Lot Acceptance, Disclosure Statement on Loan Transactions, and Deed of Conditional Sale. While under PCFI Forms are Reservation Agreement (RA, Buyer’s Information Sheet (BIS), Counselling Confirmation Form (CCF), Contract to Sell (CTS), Attorney-in-Fact (AIF) Information Sheet and Deed of Reconveyance (DOR).
Image 4 – Pagibig Financing Documentary Requirements.
Regarding the Monthly Payment, PCFI shall act as collecting agent for buyer’s first 12 months Monthly Amortization. Likewise subsequent payments after 12 months may be paid by buyer to Pag-IBIG thru issuance of post-dated cheques payable to Pag-IBIG; Salary deduction; Over-the-counter; or Auto-debit arrangement with banks.
Image 5 – ProFriends Pagibig Financing Other Guidelines.
Image 6 – ProFriends Pagibig Financing In-charge.
With the idea of making Pag-IBIG financing official, many house buyers will surely use their Pag-IBIG housing loans as their payment scheme given that Lancaster New City offers affordable housing. Many consumers will definitely look forward into the launch of Pag-ibig financing. Guided by their tagline, “Sa Pag-IBIG ang pinaghirapan may katuparan”; Pag-IBIG proved the Filipino citizens that every house dreamer can be a home owner.
Link of the TV ad: http://www.youtube.com/PagibigFinancing
BSHomes Realty Corp. would like to the top choice for ProFriends‘ rent-to-own homes and low-cost housing projects. Our focus is to serve renters, first time home buyers, and starting families whether employed locally or overseas own our best-selling house and lot for sale in cavite homes. To go back to our homepage, click here.