Buying Your Dream House
Acquiring a house & lot property is mostly every Filipino’s dream. Just thinking of it makes everyone feel excited. However, this feeling changes if you are now getting ready to buy it but don’t have lots of money in the bank. Since the top influencing factor that affects the class of property you will acquire is your financial capacity, the most troublesome questions that will plague your mind are: How much house can I afford? How much amortization can I sustain to pay? How much equity do I need to take out from my pocket? How much can I borrow from Pag-IBIG? Will Pag-IBIG approve my housing loan with this given worth of property? Well if your an active member of Pag-IBIG Fund and planning to buy your first house and lot through Pag-IBIG housing loan program, this guide will help you get rid of those financial worries in mind. Those questions will be answered thoroughly regardless of your income and value of chosen property using this feature of Pag-IBIG Fund, the Housing Loan Affordability Calculator.
Housing Loan Affordability Calculator
This post is about my personal experience about availing the Pag-IBIG Housing Loan to buy my dream house. I searched the internet about articles about it because I was worried if I will be granted a huge sum of money given that I reserved a house worth around 2.2 Million Pesos way back 2017. Yes, that was too reckless to do that with poor financial planning, budgeting and assessing your financial capacity though I read so many articles in the internet to get a glimpse about how things work in Pag-IBIG Housing Loan. Until I run into this site of Pag-Ibig Fund Housing Loan Affordability Calculator. Look for the image at the bottom of the page similar as below:
There are other few online calculators which give you rough computation of how much you can borrow from Pag-IBIG, yet the site above gave me the closest computation to my actual amortization in Pag-IBIG. (Close enough that the difference is just a few hundreds.)
The said site answers the three following questions of Pag-IBIG members which you need to assess to determine if you are capable of availing your target house:
- How much income is required for my desired loan value?
- How much can I borrow base on my income?
- How much can I borrow base on the value of the property?
First, I used the first calculator to know my needed Gross Monthly income for me to avail a house and lot with a TCP of P 2,223,500.00: (3 yrs is I think is the default fixed pricing period in your first year of payment but probably you can select your preferred one and just indicate it to your application form or notify your developer who is processing the housing loan in your behalf) Fixed pricing period is the duration in years at which your interest will be fixed. Once that duration ends, your interest will be re-computed to another fix period you prefer.
Result: Checked! The income required of 27, 494.59 is lower than my actual gross monthly income and the monthly amortization stated above is OK with me therefore I can avail the house and lot with the given Desired Loan Amount.
Next is the second calculator: (oops! that is censored for privacy matters.) To know how much Pag-IBIG can lend you and how much will be your monthly amortization base from your income, just place your monthly income in the input box of Gross Monthly Income.
Result: Checked! The estimated loanable amount is higher than the TCP of my target house. Therefore with my existing monthly salary, I can avail the house through Pag-IBIG.
Lastly, the third calculator: To know how much you can borrow base from the value of the property, just input the TCP of your dream house and lot under Estimated Value of Property input box..
Result: Checked! The Equity of my house is 334, 500 which is higher than the required equity but I know to myself that I can pay it with my savings. Likewise, I was planning from the very start that I will target to loan from Pag-IBIG lower than 2M so I will add more to pay in my Equity.
Final Thought
Since all the computations are financially approving to me, I can now sleep without worrying that my reservation to the house will not get wasted. And surely I can avail the Pag-IBIG Housing Loan without worrying of getting rejected.
Now, to make things more clearly and lightly in case one of the calculators above did not give you a favorable results, here are the tricks. Once you have a target house to buy in mind, it has the so-called TCP or the Total Contract Price. It is the total amount you will have to pay in order to buy that house. When you reserve it from your developer, you will be required to pay your Equity either in lump sum or monthly basis. The equity is the percentage of the TCP that you need to pay to developer. It will be deducted from the TCP thus the difference is the amount that you will loan from Pag-IBIG. This difference is the amount you will need to enter in the Desired Loan Amount of first calculator to learn your estimated monthly amortization. The computed values will be smaller than placing the whole TCP of your house in the Desired Loan Amount section. Now you want to make your monthly amortization smaller right? Then, if you have excess money or luxury to add more, just add it to pay on top of your Equity so that your loan amount in Pag-IBIG will also be lessen.
The computations in the said site provides values, amounts or figures which are just approximation and estimation based from the amounts you declared and the actual loanable amount may vary depending on Pag-IBIG Fund validation and evaluation. Personally, I used the first calculator and it gave me value which is close to my actual monthly amortization. The principal and interest are exactly the same to my actual. The only difference is my MRI/SRI and Fire insurance values.
For more info, you can also read other articles in the internet about other requirements to know if you are eligible for Pag-Ibig Housing Loan.
