AMENDED GUIDELINES ON THE Pag-IBIG END-USER

HOME FINANCING PROGRAM

LOAN PURPOSE

Cir. No. 247 Purchase of a residential house and

lot, townhouse or condominium unit, inclusive of a parking slot, which may be:

Old or brand new;

A property mortgaged with the Fund; or,

An acquired asset, which is disposed of through sealed public bidding, negotiated sale, or Rent-to-Own Program.

Cir. No. 310 Purchase of a residential house and

lot, townhouse or condominium unit, inclusive of a parking slot, which may be:

Old or brand new;

A property mortgaged with the Fund;

An acquired asset, which is disposed of through sealed public bidding, negotiated sale, or Rent-to-Own Program.

Adjoining houses and lots / townhouses / row houses / condominium units

LOAN PURPOSE

Cir. No. 247 Refinancing of an existing

mortgage with an institution acceptable to the Fund, provided that:

The loan is not in default within twelve months prior to date of application;

Said loan has a repayment history of at least two (2) years with the original mortgagee

Cir. 310 Refinancing of an existing

housing loan with an institution acceptable to the Fund; provided that, the account reflects a perfect repayment history for at least one (1) year prior to date of application as supported by the borrower’s official receipts

BORROWER’S ELIGIBILITY

Cir. No. 247 The HL applicant shall be

allowed to pay membership contributions in lump sum only if he has already contributed for at least 12 months prior to date of application.

Cir. No. 310 A new member who wishes

to apply for a housing loan and remit his membership contributions in lump sum shall be required to pay the membership contribution that correspond to the loan amount applied for to cover the 24 months membership requirement.

Loan Amount Contribution 500,000.00 200 600,000.00 250 700,000.00 300 800,000.00 350 900,000.00 400 1,000,000.00 450 1,100,000.00 500 1,200,000.00 550 1,300,000.00 600 1,400,000.00 650 1,500,000.00 700 1,600,000.00 750 1,700,000.00 800 1,800,000.00 850 1,900,000.00 900 2,000,000.00 950 2,100,000.00 1,000 2,200,000.00 1,050 2,300,000.00 1,100 2,400,000.00 1,150

Loan Amount Contribution 2,500,000.00 1,200 2,600,000.00 1,250 2,700,000.00 1,300 2,800,000.00 1,350 2,900,000.00 1,400 3,000,000.00 1,450 3,100,000.00 1,500 3,200,000.00 1,550 3,300,000.00 1,600 3,400,000.00 1,650 3,500,000.00 1,700 3,600,000.00 1,750 3,700,000.00 1,800 3,800,000.00 1,850 3,900,000.00 1,900 4,000,000.00 1,950 4,100,000.00 2,000 4,200,000.00 2,050 4,300,000.00 2,100 4,400,000.00 2,150

Loan Amount Contribution 4,500,000.00 2,200 4,600,000.00 2,250 4,700,000.00 2,300 4,800,000.00 2,350 4,900,000.00 2,400 5,000,000.00 2,450 5,100,000.00 2,500 5,200,000.00 2,550 5,300,000.00 2,600 5,400,000.00 2,650 5,500,000.00 2,700 5,600,000.00 2,750 5,700,000.00 2,800 5,800,000.00 2,850 5,900,000.00 2,900 6,000,000.00 2,950

Upgraded Contributions

BORROWER’S ELIGIBILITY

Cir. No. 247 Cir. No. 310 After filing the HL application,

the borrower shall be required to continue remitting monthly contributions based on the upgraded rate. However, if the approved loan is less than the loan amount applied for, the member shall pay the membership contributions that correspond to the approved loan amount and every month thereafter.

BORROWER’S ELIGIBILITY

Cir. No. 247 Had no Pag-IBIG housing loan

that was foreclosed, cancelled, bought back due to default, or subjected to dacion en pago, which shall include cases where the borrower is no longer interested to pursue the loan and surrenders the property

Cir. No. 310 Had no Pag-IBIG housing loan that

was foreclosed, cancelled, bought back due to default, or subjected to dacion en pago, which shall include cases where the borrower is no longer interested to pursue the loan and surrenders the property. However, the Senior Management may allow such borrowers to avail of a new housing loan under certain meritorious conditions, such as but are not limited to the following:

BORROWER’S ELIGIBILITY

Cir. No. 247 Cir. No. 310 Illness of the borrower or of any

of his immediate family members as certified by a government doctor. The illness under consideration shall pertain to a condition that required prolonged treatment, such that the borrower has incurred expenses for such treatment. This caused him to fail in his loan obligation with the Fund and consequently to the foreclosure of his REM account, cancellation of CTS, or surrender of his property via dacion en pago.

BORROWER’S ELIGIBILITY

Cir. No. 247 Cir. No. 310 Unemployment of the borrower

at the time his previous housing loan was foreclosed, its CTS cancelled or the property surrendered through dacion en pago, but the said borrower has now become employed and is able to meet all other eligibility criteria

Other similar meritorious cases that the Senior Management may consider

LOAN AMOUNT

Cir. No. 247 Maximum of P3 M

Cir. No. 310 Maximum of P6 M

Availability of loans over P3 M to P6 M shall be limited to the Fund’s annual allocation

LOAN AMOUNTCAPACITY TO PAY

Cir. No. 247 A member’s loan entitlement

shall be limited to an amount for which the monthly repayment on principal and interest shall not exceed forty percent (40%) of the member’s or family’s net disposable income, whichever is applicable;

Cir. No. 310 A member’s loan entitlement shall

be limited to an amount for which the monthly repayment shall not exceed thirty five percent (35%) of the borrower’s gross monthly income for loans not exceeding P1.25 M and thirty percent (30%) of the borrower’s gross monthly income for loans exceeding P1.25 M.

In case of tacked loans, the individual gross monthly income of at most three borrowers shall be considered.

LOAN AMOUNTCAPACITY TO PAY

Cir. No. 247 the member’s net take

home pay does not fall below the minimum requirement as prescribed by the GAA or company policy, whichever is applicable, after deducting the statutory deductions, computed monthly repayment and other obligations.

Cir. No. 310 For government employees

who will be paying their loan amortization through salary deduction, their Net Take Home Pay must not fall below the minimum requirement as prescribed by the General Appropriations Act (GAA). [P5,000]

LOAN AMOUNTCAPACITY TO PAY

Cir. No. 247 Tacked Loans

Up to 3 members may be tacked into a single loan, provided they are related within the second civil degree of consanguinity or affinity.

Cir. No. 310 Tacked Loans

Same

LOAN AMOUNTCAPACITY TO PAY

Cir. No. 247 Tacked Loans

Up to 3 members may be tacked into a single loan, provided they are related within the second civil degree of consanguinity or affinity.

Cir. No. 310 Tacked Loans

Co-borrowers not related to the principal borrower may be allowed, subject to the following:

The co-borrower shall be co-owner of the property, i.e. the title is registered in the name of the principal borrower and co-borrower

Approval by Branch Manager or higher level of authority

LOAN AMOUNTLOAN-TO-COLLATERAL RATIO

Cir. No. 247

Loan AmountWith

Buyback Guaranty

W/o Buyback Guaranty

Up to P400K 100% 100%

>P400K -P750K 100% 90%

>P750K -P1.25M 95% 85%

>P1.25M -P3M 90% 80%

Cir. No. 310

Loan Amount Loan-to-Collateral Ratio

Up to P1.25 M 90%>P1.25 M to P6 M 80%

For developer-assisted housing loans up to P400,000, the loan-to-appraisal value ratio shall be 100%; provided:

the developer’s License to Sell is for a socialized housing project; and;

the borrower’s housing loan purpose is for the purchase of a residential unit

LOAN AMOUNTLOAN-TO-COLLATERAL RATIO

Cir. No. 247

Loan AmountWith

Buyback Guaranty

W/o Buyback Guaranty

Up to P400K 100% 100%

>P400K -P750K 100% 90%

>P750K -P1.25M 95% 85%

>P1.25M -P3M 90% 80%

Cir. No. 310 Loan-to-Collateral Ratio

may be adjusted depending on the result of the Borrower’s Evaluation System (BES)

17

Loan approval requirements: Membership contribution requirement

Updated Short Term Loans

Credit and Background Checking

Capacity to pay based on gross monthly income

Technical Appraisal of the property

Borrower Evaluation System

Inclusion of BES in the Loan Evaluation Process

18 Impact of BESADJECTIVAL

RATINGSOCIALIZED HOUSING

UP TO 1.25M

UP TO 6M

GOOD 100% 90% 80%

FAIR 95% 85% 75%

POOR 90% 80% 70%

BES Rating shall be applied against LTV RatioThe BES shall not be applicable to the Affordable

Housing Program

INTEREST RATE

Cir. No. 247

Loan Amount Interest Rate

Up to P400K 6%

>P400K to P750K 7%

>P750K to P1 M 8.5%

>P1 M to P1.25 M 9.5%

>P1.25 M to P2 M 10.5%

>P2 M to P3 M 11.5%

Cir. No. 310 Based on the Fund’s pricing

framework.

The interest rate shall be re-priced periodically, depending on the chosen fixed-pricing period of the borrower. Interest rates may be fixed for 3, 5, 10 or 15 years.

Loan Amount

Indicative Rates per Re-Pricing Period

3-yr 5-yr 10-yr 15-yr

Up to P6M 7.985% 8.985% 10% 10.75%

Loan Amount

Indicative Rates per Re-Pricing Period

20-yr 25-yr 30-yr

Up to P6M 11.125% 11.50% 12.25%

INTEREST RATE

The proposed pricing framework would adopt the following:

1. Full Risk-Based Pricing which will cover cost of funds, cost of servicing and administering, reasonable margin, expected loss and use of capital;

2. Pricing will be determined by the term structure / re-pricing period rather than the loan value;

ACCELERATED PAYMENTS

Cir. No. 247 Any amount paid in excess of

the required monthly amortization shall be applied automatically to principal, unless otherwise expressly requested by the borrower upon payment.

Cir. No. 310 Any amount in excess of the

monthly amortization due shall be treated as future amortization. However, upon request of the borrower and provided the amount to be applied is equivalent to at least one monthly amortization, said amount shall be applied to the principal.

LOAN PAYMENT

Cir. No. 247 Cir. No. 310 In case of salary deduction,

an equivalent of 1 month amortization shall be deducted from the loan proceeds upon loan takeout

LOAN PAYMENT

Cir. No. 247 1st monthly amortization shall

commence on the month following loan takeout/final loan release.

Cir. No. 310 1st monthly amortization

shall commence on the month following loan takeout (DV/Check date).

For staggered releases, 1st monthly amortization shall commence on the month following the DV/Check date of the final loan release.

COLLATERAL

Cir. No. 247 The property must be

covered by an Original Certificate of Title (OCT), Transfer Certificate of Title (TCT) or Condominium Certificate of Title (CCT) issued by the Register of Deeds, free from all liens and encumbrances.

Cir. No. 310 The property must be covered

by Original / Transfer / Condominium Certificate of Title (OCT/TCT/CCT) issued by the Registry of Deeds, free from all liens and encumbrances, except those that are subject of heirs’ lien under Sec. 4 Rule 74 of the Rules of Court.

COLLATERAL

Cir. No. 247The property must be covered by

an Original Certificate of Title (OCT), Transfer Certificate of Title (TCT) or Condominium Certificate of Title (CCT) issued by the Register of Deeds, free from all liens and encumbrances.

Cir. No. 310 Properties subject of heirs’ lien

under Sec. 4 Rule 74 of Rules of Court may be accepted as security for the loan, provided the borrower shall put up a surety bond that shall answer for the outstanding loan obligation still due to the Fund in the event another person including an heir of the registered owner would lay claim on the property offered as security.

COLLATERAL

Cir. No. 247 It must be in the name of :

Any or more of the borrowers (except in case of accommodation mortgage), in case of REM.

The developer, in case of CTS accounts; provided Deed of Assignment of CTS is annotated in the title in favor of the Fund

In case of JV where land is owned by a third party, the developer is authorized under the JVA to execute a Deed of Assignment of CTS covering the property in favor of the Fund

Cir. No. 310 It must be in the name of any

one or more of the borrowers, except in cases of accommodation mortgage.

In case of Third Party REM or accommodation mortgage, the title must be in the name of the land owner.

INSURANCE

Cir. No. 247 In the case of borrowers who

are tacked into a single loan, only the principal borrower shall be covered by the MRI/SRI to the full extent of the loan. Thus, the entire loan shall be extinguished by the MRI/SRI, should the principal borrower die. On the other hand, the principal borrower shall continue to amortize the entire loan, should one or both of his co-borrowers die.

Cir. No. 310 In the case of borrowers who are

tacked into a single loan, the principal borrower and his co-borrower shall each be covered by the MRI/SRI to the extent of their individual loan entitlement. As such, the MRI/SRI premium shall be the aggregate of the premiums corresponding to each borrower. Thus, should any of the borrowers die, only his portion of the entire loan shall be extinguished.

INSURANCE

Cir. No. 247 Cir. No. 310 The Fund will no longer renew

the MRI of the principal borrower and his co-borrower/s once the subject property has been auctioned off.

Nonetheless, the principal borrower and his co-borrower/s shall still be covered by the MRI until such time that the unexpired premiums have been utilized.

DEFAULT

Cir. No. 247 Cir. No. 310 While the account remains in

default, the borrower shall not be allowed to avail of any of the Fund’s loan programs; except in the case of MPL where the purpose is to updated his HL.

DEFAULT

Cir. No. 247 Cir. No. 310 Prior to filing of EJF, the principal

borrower’s and his co-borrower/s’ TAV shall be applied to his outstanding obligation, except if the borrower/co-borrower has an existing MPL/Calamity Loan.

If there is an existing MPL/Calamity Loan, the TAV that will be applied to the HL obligation shall be net of the outstanding obligation for MPL/Calamity Loan and estimated 6 months penalties and interests.

ADDITIONAL LOAN

Cir. No. 247 Cir. No. 310 Loan purpose:

House construction on a lot purchased /refinanced through Pag-IBIG housing loan;

Home improvement;

Purchase of lot / row house / town house / condominium adjacent to the property mortgaged with the Fund. In case of vertical development, this may also include purchase of a parking lot.

ADDITIONAL LOAN

Cir. No. 247 Cir. No. 310 Loan purpose:

House construction on a lot purchased /refinanced through Pag-IBIG housing loan;

Home improvement;

Purchase of lot / row house / town house / condominium adjacent to the property mortgaged with the Fund. In case of vertical development, this may also include purchase of a parking lot.

ADDITIONAL LOAN

Cir. No. 247 Cir. No. 310 Eligible borrower may be

allowed to avail of additional loan provided the resulting monthly repayment shall not exceed 35% of gross monthly income for consolidated loans not exceeding P1.25 M, or 30% of gross monthly income for consolidated loans over P1.25 M.

The borrower may avail of the additional loan only once during the term of the loan.

OTHER PROVISIONS

All accounts documented by the developers prior to 2 July 2012 shall be processed under the old guidelines; provided, an inventory list will be submitted on or before 31 July 2012; provided further, that the same accounts shall be delivered for takeout not later than 31 December 2012

All ambiguity in the implementation of the program shall be resolved by the Department Manager or escalated to the next higher level of authority.

Pag-IBIG Affordable

Housing Program

ELIGIBILITY

Pag-IBIG member for at least 24 months

Has a gross monthly income not exceeding P17,500

Not more than 65 years old

Has legal capacity to acquire and encumber real property

No outstanding housing loan as principal or co-borrower

No outstanding MPL in arrears

Had no Pag-IBIG housing loan that was foreclosed, cancelled, bought back due to default, or subjected to dacion en pago, which shall include cases where the borrower is no longer interested to pursue the loan and surrenders the property. However, SM may allow such borrowers to avail of a new housing loan under certain meritorious conditions

LOAN AMOUNTENTITLEMENT BASED ON

GROSS MONTHLY INCOME

Details Maximum Gross Monthly Income

Income

Cluster*

Cluster 1 (NCR) up to P15,000 Up to P17,500

Cluster 2 (Regions) up to P12,000 Up to P14,000

Loan Amount Loan up to P400,000

Loan up to P750,000

*Applicable income cluster and loan entitlement is dependent on the borrower’s place of work or business*For OFWs, Cluster 1 will be adopted.

ILLUSTRATION

Borrower’s Gross Monthly

IncomeBorrower’s

Place of WorkLoan Amount

applied forApplicable

Cluster Limit Applicable HL Program*

P8,169.10 Kidapawan P400,000 Cluster 2 Affordable HL

P12,957.50 Las Piñas P400,000 Cluster 1 Affordable HL

P16,000.00 Muntinlupa P400,000 Cluster 1 Affordable HL

P13,000.00 Tuguegarao P400,000 Cluster 2 Affordable HL

P7,908.33 Cebu P450,000 Cluster 2 Affordable HL

P8,851.25 Compostela Valley

P516,710.41 Cluster 2 Affordable HL

P18,000 Makati P400,000 N/A Regular HL

P15,000 Davao P500,000 N/A Regular HL

LOAN AMOUNTENTITLEMENT BASED ON

CAPACITY TO PAY

For loans up to P750,000, the monthly repayment on principal and interest should not exceed 35% of the borrower’s gross monthly income

LOAN AMOUNTLOAN TO COLLATERAL RATIO

Loan Amount Loan to Appraisal Value Ratio

Up to P400,000 100%

Over P400,000 to P750,000 90%

INTEREST RATES

Details Maximum Gross Monthly Income

Income

Cluster

Cluster 1 (NCR) up to P15,000 Up to P17,500Cluster 2 (Regions) up to P12,000 Up to P14,000

Loan Amount Loan up to P400,000

Loan up to P750,000

Interest Rate* 4.5% 6.5%

* Applicable interest rate is based on the borrower’s place of work and gross monthly income**At the end of the 10-year period, the interest rates shall be re-priced based on the prevailing interest rate in the Fund’s pricing framework or it shall be increased by 2%, whichever is lower. The borrower shall also be given the option to choose the succeeding re-pricing period, whether it will be every three (3), five (5), ten (10) or fifteen (15) years. The base rate for succeeding re-pricing shall be the interest rate for the immediately preceding re-pricing period.

ILLUSTRATION

Borrower’s Gross Monthly

IncomeBorrower’s

Place of Work HL Program Approved Loan Amount

Applicable Cluster Limit

Applicable Interest Rate*

P8,169.10 Kidapawan Affordable HL P400,000 Cluster 2 4.5%

P12,957.50 Las Piñas Affordable HL P400,000 Cluster 1 4.5%

P16,000.00 Muntinlupa Affordable HL P400,000 Cluster 1 6.5%

P13,000.00 Tuguegarao Affordable HL P400,000 Cluster 2 6.5%

P7,908.33 Cebu Affordable HL P450,000 Cluster 2 6.5%

P8,851.25 Compostela Valley

Affordable HL P516,710.41 Cluster 2 6.5%

P18,000 Makati Regular HL P400,000 N/A Depends on chosen re-pricing period of borrower

P15,000 Davao Regular HL P500,000 N/A Depends on chosen re-pricing period of borrower

LOAN TERM

Max. of 30 years

THANK YOU!