Top Reasons Why Choose Pag-IBIG Housing Loan over Banks

Top Reasons Why Choose Pag-IBIG Housing Loan over Banks

These are the lists that I believed Why Choose Pag-IBIG housing loan over Banks

1.) Longer terms of up to 30 years

Pag-IBIG has the longest terms of housing loan of up to 30 years. This enables the borrower/buyer to have a very low monthly amortization. We know for a fact that the lower the monthly amortization, the lower the required income will be to be approved on a housing loan.

2.) With regards to Non-payment (foreclosures)

Pag-IBIG has the longest time of foreclosures processing, most of the time they will give you a chance and consideration to still pay for your unpaid monthly payments. Unlike bank, once you have defaulted on succeeding monthly payments, their process of foreclosures is very fast.

3.) Prepayments or Advance payment of Housing Loan

For Pag-IBIG, you can make advance payments equal to the monthly amortization of your housing loan, this will be applied to the principal which later on shorten the terms of your housing loan. You can also pay all of your loan once you have money without paying pre-termination fee which is usually been charged by banks.  Also for banks, you are required to pay for the interest based on the fixing period if you will pay your loan in advance.

4.) Increase in Interest rates every fixing period

Pag-IBIG may increase the interest rates at a maximum of 2% every fixing period that the borrower has chosen during the time of loan.  For banks, it can be higher.

5.) Your monthly contribution included in your amortization earns Dividends

The monthly contribution that is included in your monthly amortization is earning dividends. This is one of the advantages that Pag-IBIG is giving to its members.

6.) Minimal processing Fee as compared to Bank charges of an average 3% of Loanable amount.