Pag IBIG Housing Loan Affordability Calculator

Pag-IBIG Affordability Formula:

\[ Affordable = \frac{(Income - Expenses) \times Term}{Rate\ Factor} \]

Monthly Income (PHP):

PHP

Monthly Expenses (PHP):

PHP

Loan Term:

months

Rate Factor:

unitless

Affordable Loan Amount:

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1. What is Pag-IBIG Housing Loan Affordability?

The Pag-IBIG Housing Loan Affordability calculation helps determine how much housing loan you can afford based on your income, expenses, loan term, and current interest rates (represented by the rate factor).

2. How Does the Calculator Work?

The calculator uses the Pag-IBIG affordability formula:

\[ Affordable = \frac{(Income - Expenses) \times Term}{Rate\ Factor} \]

Where:

\( Income \) — Your monthly income in PHP
\( Expenses \) — Your monthly expenses in PHP
\( Term \) — Loan duration in months
\( Rate\ Factor \) — Factor based on current interest rates

Explanation: The formula calculates how much loan you can service based on your disposable income (income minus expenses) over the loan term, adjusted for current interest rates.

3. Importance of Affordability Calculation

Details: Calculating your affordable loan amount helps you determine a realistic budget when shopping for a home and ensures you don't overextend your finances.

4. Using the Calculator

Tips: Enter your net monthly income, estimated monthly expenses, desired loan term (typically 180-360 months for Pag-IBIG loans), and the current rate factor (available from Pag-IBIG).

5. Frequently Asked Questions (FAQ)

Q1: Where can I find the current rate factor?
A: The rate factor is available from Pag-IBIG branches or their official website and varies based on loan terms and current interest rates.

Q2: What's included in monthly expenses?
A: Include all regular expenses like utilities, food, transportation, existing loans, education costs, and other living expenses.

Q3: What loan terms does Pag-IBIG offer?
A: Pag-IBIG typically offers terms from 1 to 30 years (12 to 360 months), with longer terms resulting in lower monthly payments but higher total interest.

Q4: How accurate is this calculation?
A: This provides an estimate. Actual loan approval depends on Pag-IBIG's full assessment including credit history, property valuation, and other factors.

Q5: What's the maximum loan amount Pag-IBIG offers?
A: As of 2023, Pag-IBIG offers up to PHP 6 million for socialized housing and up to PHP 8 million for regular housing loans, subject to eligibility.