Most Filipinos can agree that owning a home is something we all want for ourselves. It means that we get to give our families a place where they can grow. This milestone also affords us some resemblance of financial independence and security in the future. Of course, it is a big investment that many of us can’t exactly rush into, as well. Real estate is expensive, as we all know. But thankfully, with the Pag-IBIG housing loan, the path toward owning a house and lot can be much clearer.
With low-cost, flexible financing schemes, Pag-IBIG gets Filipinos affordable, quality homes at repayment terms that work best for their situation, budget, and plans. However, there is still no guarantee that a borrower’s loan will get approved. Factors like your capacity to pay, requested amount, loan-to-value ratio, and the like will be examined closely. This is why you need to prepare.
Having a stable job and consistent income streams definitely helps. Creating a checklist of all the requirements you need to submit is a plus, too. But apart from these, you can increase your loan application’s chances of getting approved with these simple tips.
Download: Best Properties to Buy in the Philippines for Different Budgets in 2021
Settle Your Payments Beforehand
Before you even apply for a new housing loan and submit your documents, ask yourself: have I paid all my outstanding loans?
Please, settle those missed payments, if you have any. Pag-IBIG can outright decline your housing loan applications if there are unpaid multi-purpose loans or canceled loan accounts under your name. At the very least, this can be an easy fix. You can just see the payments that you need to settle by checking your existing Pag-IBIG loan accounts.
Apply For an Amount You Can Realistically Pay Back
Think of your long-term plans. Only borrow what you know is realistic for your financial capacity. Be sure to see if you can really pay the principal and interest with your current and future income streams. Even if you’re a qualified member who can borrow as much as P6 million for a property’s financing, you shouldn’t just go with the highest number possible.
Use the Pag-IBIG Housing Loan Affordability Calculator. It can tell you how much you can borrow and pay in monthly amortization, based on your loan term, income, fixed pricing period, and the home’s estimated value.
Think About Making a Higher Down Payment
Most house and lots for sale require you to pay around 20% DP. Note that paying a higher amount does have its benefits. Borrowing lower amounts can equal to lower monthly amortization. If you do decide to up to DP, you should find an extra stream of income to supplement the purchase. Just remember to update your Certificate of Employment and Compensation (CEC) if you do pursue other income-generating ventures. This document is pivotal to your loan’s approval, too.
Learn More About the Pag-IBIG Affordable Housing Loan Program
Unfortunately, for borrowers who only earn minimum wage, qualifying for home loans can be hard and, sometimes, even Pag-IBIG can’t help. With that said, not all hope is lost. Pag-IBIG’s Affordable Housing Loan Program (AHP) was made to serve low-income earners.
If you have a monthly income of P15,000 or lower in Metro Manila and P12,000 or lower in the country’s provinces, you might just qualify for the AHP. A 3% annual interest rate applies for the first five years of the term while the maximum repayment term is 30 years. For as low as P2,445.30 a month, you get to finally become a homeowner.
Just in case your Pag-IBIG housing loan application doesn’t get approved, don’t fret. Bank and in-house financing options are still available. Ohmyhome, for instance, has partnerships with multiple property developers, too. This helps us assist a wider home buyer market through in-house financing.
While they may have more stringent requirements, banks can help take you one step closer to homeownership, as well. You can also read more about the home loans offered by Philippine banks in 2021 here.
Ultimately, each one of us is going to take a different approach to our home-buying aspirations. All routes toward this goal are equally valid. After all, the important thing is that you can rest assured that your family gets to live in their dream home.
Do you want to learn more about your financing options? Feel free to get in touch with an Ohmyhome property agent to get started. For more information on the best and latest property listings nationwide and how our Ohmyhome’s online ecosystem helps sellers like you, visit Ohmyhome.com or download the official Ohmyhome app.
Ohmyhome was launched in the Philippines in September 2020, following the company’s establishment of a tech team in the country in 2017. Ohmyhome was originally founded in 2016, and subsequently rose in Singapore as a leading PropTech solution and licensed real estate agency.
Ohmyhome expanded into the Philippines so that Filipino home seekers can have a real estate partner that they can trust to have their best interests at heart and can be relied upon to provide exceptional services throughout the entire property journey.
Featuring thousands of properties across many of the Philippines’ major real estate brands, Ohmyhome differs from other local platforms by going the extra mile and extensively helping buyers narrow down the choices and find the property that best suits their budgets, home needs, and lifestyle preferences.
The company’s Real Estate Agents not only help in the shortlisting of options but also provide professional services through the entire purchasing process. These include assistance in property inspections, negotiations, the finalization of the Conditions of Sale, deposit collection, the submission of property documents, as well as providing buyers regular updates.
Ohmyhome helps Filipinos find their dream homes, all while making sure each real estate transaction is complete and is an efficient and enjoyable experience.