Purchasing a home is a dream for many Filipinos, but it can be a daunting task, especially when it comes to financing. Fortunately, the Pag-IBIG Fund offers a housing loan program that makes it easier for Filipinos to buy their dream home. In this blog post, we’ll discuss the advantages of availing of a Pag-IBIG housing loan to purchase a home.
1. Lower Interest Rates
One of the most significant advantages of availing of a Pag-IBIG housing loan is the lower interest rates. Pag-IBIG offers lower interest rates than other financial institutions, meaning lower monthly payments and more affordable housing loan options. Pag-IBIG also offers fixed interest rates for up to 30 years, giving borrowers peace of mind knowing their monthly payments will remain the same.
2. Higher Loan Amounts
Another advantage of availing of a Pag-IBIG housing loan is the higher loan amounts. With a Pag-IBIG housing loan, borrowers can borrow up to PHP 6,000,000, while other financial institutions typically offer lower loan amounts. This makes it easier for borrowers to finance their dream homes without having to worry about coming up with additional funds.
3. Lower Down Payment / Equity
Pag-IBIG also requires a lower down payment/equity compared to other financial institutions. With Pag-IBIG, borrowers can pay as little as 5% of the property’s value as a down payment/equity, while other financial institutions typically require at least 20%. This allows borrowers to purchase a home with less cash up front, making it more accessible for first-time homebuyers.
4. Flexibility
Pag-IBIG offers more flexibility. For example, Pag-IBIG allows borrowers to choose their payment terms, from as short as 5 years to as long as 30 years. This flexibility allows borrowers to choose a payment term that fits within their budget and financial goals. Pag-IBIG also offers a grace period for borrowers who need a little more time to make their monthly payments/amortizations.
5. Developer-Assisted Loan Application
When a borrower purchases a home from a Pag-IBIG Accredited Real Estate Developer, his/her account will be developer-assisted. The Property Developer assists the member in his/her housing loan application. Here at Southwynd Residences, we assist our clients in securing their housing loan applications in Pag-IBIG. Our clients will only be required to cooperate with us to sign and submit the necessary requirements/documents for loan application and approval.
In conclusion, availing of a Pag-IBIG housing loan to purchase a home has several advantages. From lower interest rates to higher loan amounts and more flexibility in payment terms, Pag-IBIG offers a more affordable and accessible housing loan option for Filipinos. If you’re considering purchasing a home, it’s worth exploring your options and comparing the loan terms and conditions of Pag-IBIG and other financial institutions to find the best option. With a Pag-IBIG housing loan, you can make your dream of owning a home a reality.
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