There are some reasons why most people prefer to get a PAG-IBIG Housing Loan rather than getting a BANK HOUSING-LOAN below are the advantages and of PAG-IBIG Housing Loan vs Bank Housing Loans.
Advantages of PAGIBIG Housing Loan
1. PAG-IBIG Offers Longer Terms than Bank
In most cases during your house hunting when you are on the verge of deciding to get your dream house on a monthly basis. You’ll stumble in various computations like PAG-IBIG Computation typically PAG-IBIG Offers a maximum of 30 Years Loan Term while the bank offers at 20 Years depending on your income capacity in paying the loan. Well, technically you can only avail the “30 Years” loan of PAGIBIG if your current age plus 30 Years must not be equal to 70 Years Old. You can still avail long terms even in your forties.
2. PAG-IBIG Has less interest than Bank
Parts of PAG-IBIG Fund goals is to provide affordable housing for Filipinos. They offer much lesser interest than the bank. Usually, the bank offers an interest rate at 11% in their 20 Years of a term it gets lower as you will choose lower terms. PAG-IBIG, on the other hand, offers interest rates at 6.5% up to 9%.
3. PAG-IBIG Has fewer foreclosure rates
The best thing about PAG-IBIG it’s a government agency, not like the bank runs by a private corporation. However, as long as you get approved in PAG-IBIG they offer a bigger grace period on your delayed monthly amortization payments. Some of their clients even have 1 year delayed payments while on the bank when you are 3 months delayed you’ll get an eviction notice.
4. PAG-IBIG Offers Cheaper Penalties
The good thing about PAG-IBIG is when you are delayed on payments they only charge a very tiny interest on the penalty. I have a client which already 3 months delayed on her monthly amortization but she gets only around PHP100+ of penalty. Yes, a very small PHP100+ penalty. Is it amazing isn’t?
5. Processing Charges
When you avail a housing loan via bank you’ll stumble what they called “Bank Charges” varies depending on the amount of the loan you are getting. Assuming you will get around PHP1.5m Housing Loan the bank charge will be around PHP40,000. While in the PAG-IBIG it’s around PHP6,000 to PHP10,000 well it will be included in your computation sheet.
6. Packaged Insurances
The best thing about PAG-IBIG is your monthly amortization is included in it’s MRI (Mortgage Redemption Insurance) this is the protection of your asset if something happens to the principal buyer. On the other hand, BANK offers insurances but they are not packaged you are entitled to change your insurer every year. While in the PAG-IBIG it’s included and it’s affordable.
