BENEFITS OF HOUSING GUARANTEE
If a guarantee call is approved, PHILGUARANTEE pays 100% of the outstanding principal balance and guaranteed interest of up to 11%.
|Housing Package||% of Guaranty Coverage|
|Socialized Housing (P580,000 and below)||100||11.0|
|Low-Cost Housing (above P580,000 to P3.0M)||100||10.0|
|Medium Cost Housing (above P3.0M to P4.0M)||100||9.5|
|Open Housing (above P4.0M to P5.0M)||100||8.5|
Interest income on housing loans up to the extent of 11% is exempt from all forms of taxation while the account is current.
|Housing Package||Extent of Tax-Exemption|
of Interests / Yields Earned
|Socialized Housing (P580,000 and below)||11.0 %|
|Low-Cost Housing (above P580,000 to P3.0M)||10.0 %|
|Medium Cost Housing (above P3.0M to P4.0M)||9.5 %|
|Open Housing (above P4.0M to P5.0M)||8.5 %|
The guarantee carries the unconditional guarantee of the Republic of the Philippines.
PHILGUARANTEE-covered housing loans have zero risk weight. Banks are exempt from providing risk capital reserves on PHILGUARANTEE-covered loans.
Higher Loan Values
The Bangko Sentral ng Pilipinas allows a higher loan value, specifically up to 90% of appraised value of the collateral for housing loans up to P3.0 million and covered by PHILGUARANTEE.