BENEFITS OF HOUSING GUARANTEE
Risk Cover
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 | |
|---|---|---|
| Outstanding Principal Loan | Interests / Yields | |
| 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 |
Tax incentive
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 % |
Sovereign Guaranty
The guarantee carries the unconditional guarantee of the Republic of the Philippines.
Zero-Risk Classification
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.
