QuestionsQuestions (HDMF Circular No. 353)
It amends Circular No. 310 by setting updated Loan-to-Appraised Value (LTV) ratios for retail housing loans and prescribing the rules on how a borrower may avail multiple Pag-IBIG housing loans under the End-User Home Financing Program.
The loan amount to appraised value ratio is 90% for loan amounts up to ₱1,250,000.
The LTV ratio is 85% for loan amounts over ₱1,250,000 to ₱6,000,000.
Yes. The loan-to-appraised value ratio may be adjusted depending on the result of the Borrower’s Evaluation System.
First, the resulting amortization payments for all loans must be within the borrower’s capacity to pay. Second, the aggregate loan value (outstanding balances of existing housing loans plus the loanable amount for the new housing loan) must not exceed ₱6,000,000.
It is the sum of (a) the outstanding balances of the borrower’s existing housing loans and (b) the loanable amount for the new housing loan.
The borrower’s proportionate share in the outstanding balance of the existing housing loan under a tacked loan must be included in the aggregate loan value.
If one (1) housing loan account becomes in default, all of the borrower’s housing loan accounts are considered in default as well.
While the Circular does not define it in the excerpt, it refers to an arrangement where loan balances are “tacked”/combined for purposes of determining compliance with limits; in the Circular, the borrower’s proportionate share in the outstanding balance of such tacked loan is included.
It takes effect retroactively to all housing loan applications received starting 1 April 2015.
To ensure that the rules remain viable for the Fund and consistent with prevailing market conditions.
It may adjust the applicable LTV ratio from the standard 90% or 85%, depending on the evaluation results.
The new loanable amount would be limited to ₱1,500,000 so that the aggregate loan value (₱4,500,000 + new loanable amount) does not exceed ₱6,000,000.
It requires that the resulting amortization payments for all loans, taken together, must be within the borrower’s capacity to pay.
It amends the guidelines on (1) loan-to-appraised value ratio and (2) the availment of multiple housing loans under the End-User Home Financing Program.
No. One of the explicit requirements is that the aggregate loan value must not exceed ₱6,000,000.
Yes. Even if amortizations are within capacity to pay, the borrower must still satisfy the aggregate loan value limit of not exceeding ₱6,000,000.