Applying for a home loan in a bank could be intimidating. For the majority of us, PAG-IBIG comes as the preferred, if not the only option. And so we ask, how much could we borrow from PAG-IBIG based on our monthly salary?
The good news is, just like most banks, PAG-IBIG has an online loan calculator too! Could you believe we are not spending hours in long lines just to get answers to these simple inquiries anymore? It sounds too convenient knowing our government standards, but let’s take advantage of that and find answers from there.
Moving on, their latest rates are effective as of July 2016, and for this test, I used the below example:
- Desired Loan Amount: Php 2.0M
- Preferred Repayment Period: 25 years
- Monthly Income: Php 25,000
They have three different computations – based on desired loan value, monthly income, and property value. However, the second category kind of precedes the other two. This means that everything will actually depend on your monthly income, or combined monthly income if you have a co-borrower.
- I will go directly to the estimated maximum loanable value based on a Php 25,000 gross monthly income. Note that all these results are ESTIMATES and my different from the actual numbers when you get approved.
If you are earning Php 25,000 a month, the maximum loanable amount is Php 1.22M with a monthly amortization of Php 7,500 for 25 years. Not bad.
2. Now, since we need Php 2.0M, what should our total monthly income be? Based on the below estimates, the monthly income requirement is Php 41,000. For this example, you will need a co-borrower with a monthly income of at least Php 16,000 in order to qualify.
3. Lastly, let’s check the third option. Based on the results, it is suggesting a maximum loanable amount of Php 1.5M if the value of the property is Php 2.0M. Which means you will pay the remaining Php 500,000 in cash. And if your salary is around Php 31,000, you will definitely qualify.
Overall, this may be confusing but it is ideal to always start looking at your gross monthly income. From there, you will know which property to consider.
This loan calculator can be found at http://www.pagibigfund.gov.ph/amort/.