THE DIFFERENCE BETWEEN BANK FINANCING AND PAG-IBIG FINANCING

 

THE DIFFERENCE BETWEEN BANK FINANCING AND PAG-IBIG FINANCING

     1.AS TO INTEREST RATES

•       Pag-IBIG- Offers lower interest rates than banks , especially for low cost category housing      and minimum wage earners. The current interest rate for Pag-ibig        financing is 6.25%          p.a. subject for a three year repricing period and they also offers a rate of  3% p.a. for a            minimum wage earners.
• Bank Loans - Interest rates varies on every bank and depend to the borrowers credit score. A good credit score leads to lower interest rates  as it indicates a lower risk to the bank. Recent data shows a high interest rates of 7.89% in 2024, according to Statista
• 2. AS TO REPAYMENT TERMS
• Pag-IBIG: Offers loan terms ranging from 5 to 30 years.
• Banks: Offers loan terms ranging from 5 to 20 years.
• 3. ELIGIBILITY AND REQUIREMENTS

     Pag-IBIG: Generally open to Filipino Citizens who are members or voluntary contributors ,       and may require at least six months of monthly savings and income          verification.
    Bank Loans: Typically credit score matters, income verification and payment of required          down-payment.
   




4. LOANABLE AMOUNT: 
Pag-IBIG loans have a maximum amount of ₱6,000,000, While Banks offer specific loan limits to its clients depend on the income verification.


5. PURPOSE:
 Both types of loans can be used to purchase, build, or improve a home. 


6. SERVICE FEES:
 Banks may have higher service fees and processing charges compare to Pag-ibig. 


For your housing Loan , Seeking Professional Advise from Real Estate Brokers is recommended.
Visit our FB Page https://www.facebook.com/HomesPlatinumRealty to see more pre -selling properties, Ready to Occupy which are available for bank and pag-ibig financing.