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
Up to P850,000 for Socialized Subdivision Projects (SSP) and up to P1.8 Million for Socialized Condominium Projects (SCP)
100 11.0
Low-Cost Housing
Above Price Ceiling of SSP and SCP up to P4.9 Million
100 10.0
Medium Cost Housing
Above P4.9 Million up to P6.6 Million
100 9.5

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
Up to P850,000 for Socialized Subdivision Projects (SSP)
and up to P1.8 Million for Socialized Condominium Projects (SCP)
11.0 %
Low-Cost Housing
Above Price Ceiling of SSP and SCP up to P4.9 Million
10.0 %
Medium Cost Housing
Above P4.9 Million up to P6.6 Million
9.5 %

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 the appraised value of the collateral for housing loans up to P4.9 Million and covered by PHILGUARANTEE.