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However, the maximum loan amount that you can avail yourself from SSS is PHP 40,000. To qualify for an SSS loan, you must be an active member of the SSS and have paid at least 12 monthly contributions prior to the date of your application. You must also submit proof of income and provide collateral to secure the loan. To purchase an existing residential unit which may be a house and lot, a condominium unit, or a townhouse. Purchasing a home in the Philippines is not as challenging as growing real estate prices suggest! Individuals rarely pay the whole worth of a home in a single transaction, even though property valuations are often in the millions.
You need to have 72 monthly contributions for a two-month loan, with 6 of those being posted in the previous 12 months, just like for a one-month loan. Taxes excluded, you may borrow up to ₱30,000 for this. This is what you can anticipate receiving if this is your second or subsequent application and there are no unpaid balances. A government organization in the Philippines called the Social Security System provides social insurance benefits to Filipinos. The SSS offers coverage for various unforeseen events, including disability, death, and unemployment. An individual must be employed, self-employed, or volunteer to join the SSS.
Union Bank Housing Loan
It will do all the calculations and will present you with the best amortization and mortgage rates for you. The primary requirement to be eligible for housing loans offered by banks is to be at least 21 years of age and not older than 65 years old during the loan maturity period. Bank loans also require applicants to be employed; self-employed is allowed. For Pag-IBIG, SSS, and GSIS housing loans, the primary requirement is at least 24 months of contribution. Chinabank’s Overseas Kababayan Services are designed to give you the flexibility to manage your money and investments.
To obtain an SSS loan, there are certain conditions put forward by the authorities, such as – the borrower must not have committed fraud in the Social security System. Moreover, he or she has to provide certain documents like Passport ID, marriage contract, birth certificate, Postal Id and more. All the documents submitted shall be original or true certified copies.
Who Can Apply for a SSS Loan
Any association of private sector employees that have been properly registered with the DOLE, the Securities and Exchange Commission, or the Cooperative Development Authority is referred to as a WOM. As outlined in Book V of the Labor Code, it shall include any trade union center, federation, national union, local/chapter, or independent organization. In case of default, the arrearages/unpaid loan shall be deducted from the member’s future long-term benefit claim (e.g. Retirement, total disability & death). A two-month loan is equivalent to twice the average of the member’s last twelve MSCs posted, rounded to the next higher MSC, or the amount applied for, whichever is lower.
The only limitation of this feature is that OFWs can only be granted this SSS housing loan once. However, you can still qualify for SSS’ home loan even if your spouse has availed of it prior to marriage, as long as the OFW Loan is not delinquent. The first step in your home buying journey is to use a mortgage calculator. It’s usually a free, online tool that will help you determine how much financing you could qualify for. After you have an idea of how much financing you will need, it’s time to pick a lender.
SSS loan term and loan amount
After this is granted, customers who meet the requirements can essentially choose from one of the following three purchase financing options. Existing housing account buyers or borrowers have the chance to bring their housing accounts up to date through the Ginhawa for All Housing Account Restructuring and Condonation Program. Due to the waiving of penalties and partial interest reduction, it encourages full payment, thereby lowering the sum owed on housing bills. GSIS also offers a rent-to-own scheme for foreclosed properties from the now phased-out GSIS housing loan program. To help working Filipinos with housing costs, home loan assumptions, and house repairs, the government unveiled theSocial Security System Housing Loan Program.
The social security system's business development loan facility is a lending program to assist businesses. It can help businesses with financing for expansion, diversification, and other business development projects to boost productivity and potential earnings. OFWs involved in the community are eligible for this housing loan. In reality, among OFWs, SSS housing loans are well-known. The amount for a one-month loan is equal to the average of the borrower's recent 12 month salary credit, or MSCs, or the amount requested, whichever is lesser. Similarly, if they apply for a two-month salary loan, it will be twice their monthly average, or MSCs, or the actual amount requested, whichever is lesser.
Make sure to prepare the following documents when applying for the loan program:
Borrower and spouse are updated in the payment of their other SSS loan if any. The age of the member is not more than 60 years old at the time of application. With employment contracts that are awaiting renewal/deployment, however, the release of loan shall be made upon renewal/employment.
The loan has a 9% interest rate per annum, subject to review every five years and is payable up to 20 years. However, it should not exceed the economic life of the house after repairs/improvements have been made as determined by the SSS or PFIs, nor the difference between the age of the applicant and 70. OFWs can issue a minimum of twelve post-dated checks which shall be repeated every year subsequently until said loan is fully settled. Subject arrangement is incorporated in the mortgage contract entered into by the SSS and the borrower. A set of twelve postdated checks covering twelve monthly installments and shall be repeated every 12 months thereafter until the loan is fully paid.
If you want to build a fence and gate around your home, make sure that the materials are concrete or steel. You can borrow up to ₱1,000,000 at an interest rate of 9% per annum. If you apply for a period longer than 15 years, the interest rate will be re-calculated. You will have to pay a processing fee of 12 of 1% of your loan amount, or ₱500, but it will not be more than ₱3,000. The SSS is so strict about the intended purpose of the loan that it requires an inspection to ensure the rules are followed. The processing fee will be deducted from the first loan release.
Although your income and credit are the two main things lenders take into account, they don’t tell the complete story. As a result, you can be turned down for additional reasons, such as your employment history, the stability of your housing, or cash flow or liquidity issues. When youapply for a loan, lenders will primarily look at your credit history and credit score. Lenders may decide that you are a borrower who is too hazardous to approve at this time if they notice any big negative items on your credit report or other warning signs. Community Mortgage Program – Through the CMP, legally constituted Informal Settlers in economically struggling areas can get assistance financing their homes.
The other explanation is that your debt-to-income ratio is too high. Divide your total monthly debt payments by your gross monthly income to arrive at this percentage. To ensure house loan approval, it is better tochoose a property that fits your salary.
