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.