In the Philippines, one of the most popular housing loans is the Pag-IBIG Housing Loan which is offered by the Pag-IBIG Fund to qualified members. It is open for application for members who are below 65 years old and have posted at least 24 monthly contributions with a good account standing.
The Housing Loan offer of the Fund has helped countless Filipinos acquire a residential property for their family. Truth be told that it is a whole lot different to be living in a house that you can call your own – you have control over the rules and management and yours and your family’s safety comes as the top priority.
The creation of the Fund was anchored with the government’s pursuits to help most especially the low-income Filipinos acquire a residential property.
Under its loan offer, it provides its qualified members not only with an option of up to 30 years repayment for low monthly installments but also a wide array of fixing periods that they can choose from. It will determine the interest rate that will be implemented in your loan constantly in a given period.
It is best to know the interest rate that your loan may incur so you can compute how much of the monthly amortization will be deducted from the principal balance. The implementation of the interest is under a diminishing principal balance.
Thus, the lower the principal balance is, the higher the chance that a bigger part of the monthly due will be deducted from your outstanding loan. If you want advanced payments, it must clearly be indicated in your receipt that the payment will be deducted in advance from the principal balance.
Here is a guide on the fixing period and the Pag-IBIG Housing Loan interest rate implemented under each period:
The Pag-IBIG Fund allows a maximum repayment of the loan of up to 30 years, however, the maximum loan term per application should not exceed the difference between 70 and the present age of the principal borrower. Thus, the 30-year repayment is open for those who are 30 years old and below at the time of the loan application.