Whether thinking of renovating your existing house or building a new one entirely, the Social Security System provides loans for active SSS members living in the Philippines and overseas workers.
Under this scheme, SSS offers several housing loans for different purposes. Here is a complete guide about the objective, eligibility, application process, and interest rate of the SSS housing loan, so dive right in.
SSS Housing Loan Purpose
The SSS housing loans can be used for the finances of the following.
- To purchase a lot and construct a new house on the unit.
- To purchase an existing residential unit which can be a house or a lot.
- To construct a new house on a lot already purchased by the applicant.
- Major repairs for dilapidated or unsafe housing units.
- Improvements, especially those applying to the below-mentioned.
- Extension or expansion of economic and aesthetic value of the house. The decided improvements may be permanently attached to the house.
- Completion of an occupied bare house.
- Building of concrete fence and steel gate.
- Installation of the deep wells and motor pumps within the house property.
Who is Eligible for the SSS Housing Loan?
To become eligible for the SSS housing loan scheme, you must fulfill the following conditions.
- You must be an active SSS member with at least 36 monthly contributions already paid. Out of these 36, around 24 contributions should be continuous installments for the past 24 months.
- You must be under the age of 60 at the time of application.
- You must have no unpaid SSS loans at the time of application.
- You must not have availed of final SSS benefits at the time of application.
- You and your spouse must be updated in paying any other SSS loans.
If you are an overseas Filipino worker or applying specifically for house repairs, visit the official SSS website, sss.gov.ph/sss/appmanager/pages.jsp?page=showdetails to check the eligibility. There may be specific inquiries SSS may want to know about.
SSS Housing Loan Calculator
Here is the general loanable amount and interest rate for the commercial housing loans under SSS. You may consider it to manage your expenses during the repayment period.
| Housing Loan Type | Loanable Amount | Interest Rate |
|---|---|---|
| Socialized Housing Loan | Up to PHP 645,000 | 8% p.a |
| Low-Cost Housing Loan | Over PHP 450,000 to PHP 1,000,000 | 9% p.a |
| Over PHP 1,00,000 to PHP 1,500,000 | 10% p.a | |
| Over PHP 1,55,000 to PHP 2,000,000 | 11% p.a |
Moreover, the borrower will be charged a processing fee, which is equivalent to ½ of 1% of the loan amount (as per your plan). It shall be deducted from the first loan release.
In addition, an inspection fee of PHP 500 will be charged for both outside and within the Philippines Metro Manila. The total term of the loan is anywhere between 5 and 30 years (based on the loan type) and depending on this, you can draft a repayment plan according to your budget.
How to Apply for the SSS Housing Loan?
There are two options for you to pay the SSS housing loan, direct loan or through PFI-accredited participating financial institutions. Here is the application process explained for both.
- For Direct Loan: You may visit the nearest SSS center to apply for the housing loan directly from the agency. For application, all you need to do is make an appointment for a walk-in meeting through MY.SSS portal. Once there, provide the necessary documents and application form to complete the application.
- For PFI Loan: SSS in the Philippines has partnered with different banks that offer SSS housing loans. You can visit the official SSS website to check the list of banks accredited with the PFI programs. For application, you have to inquire with your concerned PDI about the specific application process and other requirements, as they might need additional documents.
Application Evaluation
Once the application is submitted, SSS will arrange an accredited appraiser who will assess your application and property. They will determine the cost of the loan, depending on the proposal. For instance, if it is just repair, they will give you an improvement cost, while others may cover the building and construction cost of the plot.
Loan Approval and Release
After careful evaluation of your application, SSS will announce the results on your phone number or email. After it is successful, you will receive a text message with details of the loan and you can pick the amount at your earliest convenience.
Documents Required for the SS Housing Loan Application
To complete the application for an SSS housing loan, you must also submit the following documents.
- The mortgagor’s application for a housing loan. It should have the ID pictures of the principal applicant and their spouses.
- Recent two-month pay slip. This must be certified by the employer.
- Certificate of loan eligibility or P100 service fee statement.
- Deed of sale or contract to sell. It should be accompanied by a statement of the latest balance for the purchase of the plot or house.
- Certification of SSS membership. It should be authorized by the worker’s organization.
- Confirmation of appraisal from Home Guaranty Corporation-accredited appraisal companies.
- Employer’s certification.
- Certification of acceptance and occupancy (signed).
- Latest income tax return with W-2 form.
- Owner’s copy of the transfer certificate of title.
- Latest property tax declaration receipt.
- Lot plan with vicinity map. It should be signed and sealed by the registered surveyor of the geodetic engineer.
- Building plan (it can be the blueprint and pictures of the building).
- A set of 12 postdated checks stating that it has covered 12 monthly installments.
- Subdivision plan.
Contact Details
For further queries and details, you may contact SSS directly.
- SSS Call Center: 920 6446, 917 7777
- Email Address: [email protected]
In essence, I hope this guide was helpful for anyone planning to apply for the SSS housing loan in order to build their house or renovate an existing unit. If you are confused about the finances of the loan, please consult a professional, as he/ she will be better equipped to draft a housing loan plan, specific to your budget.