If you’re a Pag-IBIG member in the Philippines and considering taking out a loan, you’re likely wondering how much you’re eligible to borrow. Pag-IBIG offers housing loans for buying or building a home and multi-purpose loans for other financial needs. Calculating your loanable amount is essential to determine if a Pag-IBIG loan will help you achieve your goals.
Factors Affecting Your Pag-IBIG Loan Amount
Several key factors influence how much you can borrow from Pag-IBIG:
- Gross Monthly Income: Your income is a significant determinant. Pag-IBIG typically restricts monthly loan payments to a maximum of 35% of your gross monthly income.
- Loan Term: The duration of your loan repayment impacts your monthly payments and your total loanable amount. Longer repayment terms may allow for a higher loan amount.
- Interest Rate: Current Pag-IBIG interest rates will affect your monthly payments and loan eligibility.
- Total Accumulated Value (TAV): This refers to the total amount of your Pag-IBIG contributions plus dividends earned. A higher TAV often translates to a higher loanable amount.
Types of Pag-IBIG Loans
Let’s look at how calculations differ for the two main loan types:
1. Pag-IBIG Housing Loans
- Appraised Value: The appraised value of the property you intend to purchase plays a role. Pag-IBIG usually grants up to 95% of the appraised value but may lower this to 90% for properties above their economic housing limit.
- Affordability Calculator: Pag-IBIG has an online Housing Loan Affordability Calculator: https://www.pagibigfundservices.com/ac/ for a quick estimate.
2. Pag-IBIG Multi-Purpose Loans
- Membership Contributions: The amount you can borrow heavily depends on your regular Pag-IBIG contributions and your membership duration.
- Loan Factor: Pag-IBIG applies a loan factor (currently at 60%, 70%, or 80%) based on your membership contributions and length. A higher loan factor results in a higher loanable amount.
How to Calculate Your Pag-IBIG Loan Amount
- Online Calculators: There are several online calculators, like the official Pag-IBIG calculator or the Pag-IBIG Housing Loan Calculator by Omni Calculator: https://www.omnicalculator.com/finance/pag-ibig-housing-loan.
- Consulting a Pag-IBIG Representative: For personalized and accurate calculations, visit a Pag-IBIG branch. Representatives can help guide you through the process.
Important Note
Calculations serve as estimates. Final loan approval and the exact loan amount are subject to Pag-IBIG’s evaluation of your financial capacity and other requirements.