It depends on the type of Pag IBIG housing loan program you qualify for.
Affordable Housing Loan Program is for minimum wage earners whose gross monthly income doesn’t exceed Php 17,5000. In this case, the maximum loanable amount is Php 750,000.
Regular Housing Loan Program, on the other hand, is where Pag IBIG members with above-minimum salary can avail of a housing loan worth up to Php 6 million.
However, the final loanable amount that will be approved by Pag IBIG will be based on the lowest of the following:
- Member’s actual need.
- Desired loan amount.
- Loan amount based on the member’s capacity to pay. As a rule, if you’re availing of a housing loan less than Php 1,250,000, the monthly amortization should not exceed 35% of your gross monthly income Meanwhile, for housing loans above Php 1,250,000, the monthly amortization shouldn’t exceed 30% of your gross monthly income. Learn more about monthly amortization/salary deduction here.
- Loan-to-appraised value (LTV) ratio which is a measure of how risky you are as a borrower based on two factors: the loan amount and the value of the property you wish to purchase in the prevailing market rate. Learn more about LTV ratio here.
Go to the main article: How to Apply for Pag-IBIG Housing Loan: An Ultimate Guide