What is the difference between mortgage and loan

What is the difference between mortgage and loan

Are you planning to move into a bigger house, but you can’t because you are short on funds? Have you ever set aside your dream house since you won’t be able to pay for it in full? You don’t have to worry about that anymore. If you’ve saved up some money and have the determination to get what you want, you may just be on your way to living in your dream house with a debt instrument called a mortgage.

The mortgage is a loan used to purchase real estate, with the house as collateral. It is an asset that a bank may foreclose if a borrower defaults or stops remitting payments to a lender. Prior to approval, a lender will review a borrower’s credit score and history to see if he/she is financially capable to pay back the principal, or original loan amount.

Once an application has been approved, a borrower may choose to have a fixed or variable interest rate throughout the pre-determined set of payments. The interest rate in the first is constant throughout the payment period and shifting in the second. A lender will ask you what arrangement you prefer — an opportune time to ask about the pros and cons of the two.

These lending companies, most of them are banks, offer different mortgage plans in the Philippines. Know what makes them unique and why they are trusted by so many.


Interest rates

Bank Interest Rates
BDO 6.50%, 7.25%, 7.50%, and 8% for four-year and five year home loan applications
Pag-IBIG 5.5% p.a. for the first year and up to 10% for 30 years
Security Bank 7% p.a. for the first year
Metrobank Fixed pricing starting at 7% for the first year, up to 8.50% for the fifth year
PSBank Also fixed pricing starting at 6.50% on its first year and 10.50% on its 25th
RCBC Fixed 9.09% for year one; up to 12.44% for a loan payable in 16 to 20 years
BPI BPI Housing Loan: 6.50% for yearly payment periods and 12% for 16-20 year-loans

Property equity loan interest rates: 7.00% for yearly and 12% for loans payable in 16 to 20 years

SSS 8% per annum for loans up to PHP 450,000 and 11% per annum for loans up to PHP 1.5-2M

How to get a mortgage (Summary)

Getting a mortgage is similar to filing a personal or medical loan with a lender. A name synonymous to loans is SSS, which was established to benefit and protect wage earners and low-salaried employees from financial struggle.

A member can apply at any SSS cluster branch or at the main office of SSS at the Housing and Business Loans Department, 5th Floor SSS Building, East Avenue, Diliman, Quezon City.

An applicant must have duly accomplished SSS’ Mortgagor’s Application for Housing Loan. This must have 1” x 1” ID pictures of the principal applicant and spouse (if applicable). A certificate of loan eligibility, which has a PHP 100 service fee, and certification of membership from the workers’ organization are needed. An employer must also certify a borrower. These documents must be original copies.

Other documents that prove financial capacity are a borrower’s latest two months payslip (duly certified by an employer). If a borrower purchased a lot or house and lot, he or she needs a Deed of Sale or Contract to Sell with Statement of latest balance.

Home Guaranty Corporation-accredited appraisal companies must give their Confirmation of Completion. If it is already 100% ready at the time a loan is filed, SSS will ask for a Certificate of Acceptance and Occupancy with signature of a borrower.

Other financial documents needed are latest ITR with Form W-2 and Confirmation Receipt of Payment. An owner must also submit an owner’s copy of original TCT/CCT and latest Property Tax Declaration with latest Realty Tax Receipt. All these must have original and photocopies.

A borrower should also produce a lot plan with vicinity map and blueprint, duly signed and sealed by a registered surveyor or geodetic engineer. SSS will need a blueprint of building plans/specifications/picture of the house. A tax mapping or subdivision plan is also needed.

SSS may ask for additional documents on top of existing ones should it need more clarification.

Once a loan has been approved and granted, a borrower must pay 12 Postdated Checks or PDCs in 12 monthly installments to SSS. PDCs must be paid every 12 months until a loan has been fully settled.

SSS will deduct an application fee, which is 1 percent of the total loan amount or PHP 500. This will not exceed PHP 3,000, deducted from the first release of a loan. There will also be an inspection fee worth PHP 500 for the project, within and outside metro Manila.

Where to get documents needed for a loan

  • You may ask your employer for a copy of your payslips or have them printed if it’s on your employee portal of records.
  • All tax documents can be acquired from the nearest BIR Regional District Office (RDO) to the property. These are also available online. You may also ask your employer for a copy as well, since they are the ones managing your documents with SSS.
  • For other SSS documents, you may visit any of its branches or its website to get a copy.
  • Blueprints and lot plans may be obtained from the architects and engineers in charge of building or renovating your home, or one of the accredited developers of SSS.


Banco De Oro (BDO)’s home loan program offers financial assistance for borrowers in the market for a house and lot, condominium, vacant lot, as well as home improvements and reimbursement of acquisition. The bank can even lend money for purchasing vacant lots and refinancing or loan take-outs.

The bank also has affordable cash out options. A borrower may avail of all-in financing, which spreads out payments for mortgage fees and other loan-related charges, or light payment options, such as a 60-day grace period or a six-month interest-only period.

Payment for the first starts 60 days after a loan has been released. A borrower will pay interest only in the first six months of a loan — payment for principal and succeeding interest charges will commence after the sixth month. Upon submission of complete application documents, BDO approves applications within five (5) and ten (10) working days for borrowers in Metro Manila and provincial areas respectively.

BDO keeps its interest rate low, with each loan earning BDO rewards points that can be redeemed in any SM Department Store. The bank is owned by SM Investments Corporation, which has 72 malls in the Philippines and 8 malls in China. Every SM has a BDO that is open until a mall is open, making it convenient. With 1,000 branches all over the Philippines, BDO is one of the most convenient banks to approach for a mortgage.


The SM Group-led BDO has numerous documents for a broad number of local and foreign clients.

BDO requires all locally employed borrowers to have a copy of their latest Income Tax Return (IT) and three months payslip, Bureau of Internal Revenue (BIR) Form 2316, and Certificate of Employment with Income (COEI).

On the other hand, self-employed applicants must have a photocopy of their audited financial statements (with latest ITR), bank statements, or passbook for the last six (6) months. BDO also needs a Department of Industry (DTI) or Securities and Exchange Commission (SEC) certificate.

They can also submit articles of incorporation or whichever requirement BDO deems necessary. A business background or company profile of the self-employed applicant is also required.

All borrowers employed overseas are expected to submit any of the following: last three-months proof of remittance, latest crew contract (for sea-based OFWs), and consularized COEI/payslip for the last three months.

BDO home loans are also available to quota or preference immigrant visa holders in the Philippines. Non-quota immigrants with Section 13A, 13D, 13E, and 13G visas are also allowed.

Other foreign nationals entitled to a BDO home loan include embassy officials who have been in the Philippines for a year, Special Resident Retiree Visa (SRRV) holders, and aliens granted permanent residence status and working visas issued by the Subic Bay Metropolitan Authority (under Republic Act No. 7227).

Since a BDO Home Loan’s collateral is a borrower’s house, the bank requires a photocopy of the real estate’s title and tax declaration as well as lot plan with vicinity map. But if a borrower is loaning for the construction of his/her dream house, BDO requires the building/floor plan of the proposed improvement, bill of materials, and the building specs of the proposed finishes. These documents require architect and civil engineer certification.

For borrowers taking a refinancing or loan take-out, they must submit a statement of account from their current bank and official receipts for the last three (3) months.

Pag-IBIG Fund

Pag-IBIG Fund - home loan

The Home Development Mutual Fund (HDMF), more commonly known as Pag-IBIG Fund (Pagtutulungan sa Kinabukasan: Ikaw, Bangko, Industria at Gobyerno), was the answer to the State’s need for a national savings and affordable shelter financing program for Filipino workers.

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All employees earning above PHP 1,500 are required by law to contribute 1% of their salary. The amount is shared with the employer 50-50. They may compute how much they could lend using Pag-IBIG Fund’s online calculator. The “Pag-IBIG Housing Loan Affordability Calculator” will generate an amount based on the employee’s desired loan amount, preferred repayment period, and preferred fixed pricing period.

Pag-IBIG has two ways of applying for a home loan. A borrower can either ask assistance from the home’s developer or apply directly to the Fund. If a house is developed by X, X will sort things out for a borrower. But if it’s a direct application, the Fund will take care of the loan and find a home that fits the credit standing of a borrower.

Members can loan up to a maximum amount of 6 million pesos. However, loans above PHP 3 million are limited by Pag-IBIG’s annual funding allocation. These are all trackable by the member using their Pag-IBIG Membership ID or Registration Tracking Number (RTN). No more calls to the Fund to ask for their loan status, since it can be tracked online.


The State’s national savings and affordable shelter fund for Filipino workers has one of the highest number of requirements.

Pag-IBIG has three processing fees: A non-refundable PHP 1,000 fee for filing the loan application with its required documents, PHP 2,000 appraisal fee, and another PHP 2,000 upon take-out fee.

A borrower must have completely filled out the housing loan application form after applying for a loan, which must have a borrower/co-borrower’s most recent ID photo. Any proof of income and a photocopy of the front and back side of the principal borrower and spouse’s ID (if applicable, the authorized representative and attorney-in-fact as well) are also needed.

A borrower must also have a Transfer Certificate of Title (TCT). It should be the latest and a certified true copy. For condos, a TCT of the land and a certified true copy of the Condominium Certificate of Title (CCT).

For house and lot applications, an Updated Tax Declaration and photocopy of Real Estate Tax are needed. There must also be a contract-to-sell or any similar agreement between the buyer and seller, as well as vicinity map/sketch of the property.

Prior to releasing the loan, Pag-IBIG will ask for two (2) copies of TCT/CCT under the name of a borrower/co-borrower/s (if applicable) with proper mortgage annotation in favor of Pag-IBIG Fund — one for an owner and another for the RD. An Updated Tax Declaration (house and lot) and photocopy of Real Estate Tax and Real Estate Tax receipt  are needed (if applicable).

Aside from tax declarations, a borrower must also submit loan mortgage documents. A Loan and Mortgage Agreement and Deed of Absolute Sale (duly registered with Registry of Deeds) with original RD stamp are required. A duly accomplished/notarized Promissory Note is also needed.

After submitting those documents, borrowers must also have the following:

Any one of the following for locally employed borrowers

  • Notarized Certificate of Employment and Compensation or CEC, which indicates gross monthly income and monthly allowances or other monthly monetary benefits received
  • Latest ITR for the year immediately preceding loan application date with attached BIR Form No. 2316 (stamped and received by the BIR)
  • Certified One (1) Month Payslip, within the last three (3) months prior to loan application date

Government employees must submit their payslip together with CEC or ITR.

For self-employed, any of the following proof of income

  • ITR
  • Audited Financial Statements
  • Official Receipt of tax payment from any bank with DTI Registration and Mayor’s/Business Permit
  • 12-months worth of commission vouchers that have the issuer’s name and contact information
  • Bank statements/passbook for the last 12 months if income (in case income is sourced from foreign remittances, pensions, etc.)
  • A copy of the lease contract and tax declaration, should income be derived from rental payments
  • A certified true copy of transport franchise (if a borrower owns a transportation business) issued by the local or national government and certificate of engagement issued by a business owner

For Overseas Filipino Workers (OFWs):

  • Employment contract, contract between employee and employer, or POEA standard contract
  • CEC
  • CEC on the Employer/Company’s official letterhead or signed by employer (for household staff and other related jobs). It must have a photocopy of the employer’s ID or passport
  • ITR with the host country/government (they must be translated to English if they are written in foreign language)


The first and oldest bank in the Philippines since 1851. Eight hundred thirty-nine branches in the Philippines, one in Hong Kong, and two in London, as of 2017. These facts make Bank of the Philippine Islands (BPI) an excellent lender partner because it has the resources, experience, and technology that you can take advantage of.

BPI has two loan options:

  • BPI Family Housing Loan
  • BPI Family Housing Loan Paybreak

The first is customizable based on clients’ needs, while the second has an amortization-free month. The housing loan without paybreak may not have a month that waives amortization, but its down payment can be adjusted to as low as 20%, payable up to 25 years. It’s tailor-fit to a borrower’s needs, perfect for a budget-minded individual who likes to maximize their loan

For home loans with paybreak, a borrower can plot in advance the month when he or she has other financial obligations. Payment terms are 5, 10, 15, or even 20 years, depending on the loan program.

Like the Fund, a borrower may use BPI’s online calculator to see how much their monthly amortization will be. A borrower can choose the type of property to be loaned and its price, as well as down payment (in percent) and the number of years to pay the amount financed.

Results may vary depending on the type of property. It can be a residential condominium, a house and lot, a new lot, or even property acquisition for Overseas Filipino Workers (OFWs). The results are nearly instantaneous and won’t even take 60 seconds for the system to compute.

There is even a self-assessment exam where BPI will ask why you are taking a home loan from them. BPI will have a set of questions that will analyze if you are financially ready to take a loan with them.

To know more, visit their branches nationwide, contact its accredited developers.


The Ayala Corporation-led BPI requires a borrower to submit their accomplished housing loan application form and two valid government IDs. If you are married, your spouse must also sign on your application form; with a co-borrower or mortgagor, another form is required.

After submitting your pre-processing requirements, you must also forward your ITR for the last two years and COE with salary, position, and tenure in the company if you are locally employed.


If you are an OFW, a COE authenticated by Philippine Consulate Crew Contract as well as Exit Pass validated by POEA if you are a seaman. You must also present proof of your monthly remittances, a notarized or authenticated Special Power of Attorney in BPI FSB format.


If you are self-employed, you must forward Articles of Incorporation and By-Laws, complete with SEC registration certificate. You should also have audited financial statements for the last two 2 years, a DTI registration, and ITR with Statement of Assets and Liabilities (SAL), also valid for the last two  years.

BPI will also need a list of your trade references — at least three names — and bank statements for the past six months. If you are a practicing doctor, BPI will need your clinic address and schedule as well as your income-supporting documents


Metrobank home loan

Metrobank is one of the most diverse lenders around because it offers home loans and home improvement financing. You don’t just have to chase your dream — you can also build it from the ground up. Or if you already have one, a fund for its beautification or renovation.

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The bank’s tagline, “You’re in good hands,” even shows in its short description of each loan type. Metrobank even posts helpful links to guide a reader better, such as online listings and a checklist of requirements in the description of foreclosed properties.

“You’re in good hands” reflects even more in Metrobank’s loan terms. You can borrow up to 90% of the real estate’s appraised value. It has an online calculator that can compute how much monthly amortization and income you need to pay back the principal, or the original loaned amount.

It even has the mortgage’s interest rate per annum, so you’ll expect how much extra money you need to produce on top of your monthly payment. Metrobank can set up a one, two, three, five and even 10-year fixed term loan.

Metrobank also caters to investors. You can use your home as collateral to fund your travel, education, and business goals, or reimburse the amount you paid for your home. Metrobank will start repaying your initial cost 12 months after the project.

Before granting mortgage, Metrobank will perform a series of background checks to see if you are capable for a home loan. If you want to have an overview of their loan program before applying, Metrobank has an online calculator where you can compute cost.


  • You must be a Filipino or foreigner,
  • 21 years old upon application but not over 65 when the loan matures
  • Minimum monthly salary of PHP 30,000


If you are a foreigner, you must have a permanent resident visa for the Philippines. The salary bracket is regardless if you are a fixed-income employee or self-employed, as long as you reside in the Philippines.


OFWs should submit a government-issued ID and passport/ACR. For land-based OFWs, they need to have their COE with email of their employer, and latest POEA contract for sea-based OFWs.

  • OFWs must have substantial experience as technical or admin staff/officer for land-based and officer rank for sea-based overseas workers. They must be actively employed or have a renewed/signed contract upon loan application.
  • All land-based OFWs with less than two years working experience must have been employed in the Philippines for five years prior to being an OFW. They could also have been an OFW under different employers or have had work locally and internationally, as long as they’ve acquired work experience.
  • Sea-based OFWs should have completed a 24-month combined contract with their current agency, or 48 months with other agencies. OFWs must have a minimum salary of PHP 30,000 per month or the same Gross Monthly Family Income (GMFI) as fixed-income employees.

Locally employed

All locally employed borrowers must have a government-issued ID, passport or ACR, and any one of the following: ITR, COE, three-months worth of payslips. For self-employed, alongside their ID and passport/ACR, they must also have bank statements covering six months, certified by the BOO.

Metrobank will ask a borrower for the following collateral documents: TCT/CCT and tax declaration. A borrower should have a contract to sell or reservation agreement for developer tie ups, and house plans/bill of materials/specifications for house construction.

Security Bank

Security Bank Philippines - can take a mortgage?

The goal of Security Bank’s home loan is to help an applicant buy, build, renovate, and refinance their home. They give a borrower a fixed interest rate on top of a high appraisal value. Security Bank’s interest rate for one year is 7%, 7.2% for three years, and 8% for five years for regular home loans. It’s slightly higher at 8%, 8.2%, and 9% for home equity loans and are still fixed. You can be more aggressive with Security Bank’s home equity loan by borrowing up to PHP 10M. Like all lenders, Security Bank conducts a background and credit check to see if an applicant can repay his/her loan. To qualify for a loan, the bank requires a borrower to have a joint gross monthly income of PHP 50,000. Still, it’s easier to repay because you are given an amount you need to constantly remit to Security Bank, payable up to 20 years. You can loan up to 80% of the appraised value of the property with a minimum loan amount of PHP 1M.

Lastly, Security Bank does not just provide loans. They also have tips for first-time borrowers seeking a home loan, such as evaluate their financial standpoint, the importance of having good, clean credit, and the use of a mortgage calculator.

The bank does not just want your money. It wants a borrower to be sure with their decision by posting tips and frequently asked questions on its site. You are truly in good hands.


All applicants must have completely filled out and signed Security Bank’s application form. This must be submitted along with a clear copy of a borrower, spouse, co-borrower, and other signatories of a loan.

Like other banks, they must present to Security Bank any one of the following:

  • COEC
  • ITR
  • Three months-worth payslips and bank statements

All these must be latest documents. For credit commission income, a borrower must have six instead of three months.

Aside from the application form and ID, self-employed borrowers must have an ITR — 1701 for sole proprietary owners and 1702 for corporations — and any one of the following: audited financials good for one year and bank statements from the last three months. They must also have lease/rental contracts.

Corporate borrowers

All corporate borrowers must completely fill out and sign the bank’s application form. It must be forwarded along with their company profile, including company background, owners, and key management officers. The company must be registered with the SEC and have a general information sheet, bank statements from the last three (3) months, and BIR Form 1702 (with audited financial statements for the last three years).

A corporate borrower is also required to present their supplier and customer’s contact information, both showing average monthly transactions of the corporation. An authorization letter for bank, business and trade checkings, as well as MRI form and other collateral documents are needed.


All OFWs must fill out Security Bank’s application form completely. It must be submitted to the bank together with a valid ID, as well as one of the following documents: COEC, latest crew contract (sea-based OFWs) or latest employment contract (land-based OFWs), allotment slip, and latest three months payslip or a bank statement. If the OFW was hired abroad, they must submit two (2) documents instead of one (1).

If the OFW needs an attorney in fact, he/she must submit a consularized Special Power of Attorney. The OFW must also forward a MRI form and collateral documents. Collateral documents include TCT/CTC, tax declaration, and appraisal fee paid to the bank. These must be photocopies and forwarded to the bank together with the personal requirements.



Philippine Savings Bank (PSBank) only takes oneday to determine if you’re qualified to loan a brand-new condominium and other relevant properties from its accredited developers.

Even if you’re not targeting vertical properties, PSBank is still competitive when it comes to its minimum and maximum home loan amount of PHP 500,000 and PHP 25M respectively. Borrowers can use a loan for various purposes such as house building and renovation, refinancing, and acquisition of a house and lot. Bank payment terms is also flexible enough. A loan can be paid up to 10 years for residential lots and 25 years for house and lot, townhouse, duplex, and condominium purchases. Principal and interest have equal monthly amortizations and are payable until a loan is fully liquidated. This makes it easier to remember the cost of both to set aside for payment.

PSBank makes their home loans convenient by having an automatic debit arrangement feature. Although most banks have this feature, having it beside a very competitive loan amount rate and equal principal and interest rate makes PSBank a compelling lender. And with one of the highest maximum loan amounts, this makes the PSBank even more inviting.

The bank accepts transfer-applicants who have loans from other lenders. The bank is open to cater borrowers who are unhappy with their loan and are willing to make the switch. With rising real estate prices, PSBank can give you a better deal with a name that is trusted in the banking space.

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PSBank processes all loan applications within five working days after passing your documents and other requirements. The bank will contact you once you qualify for a loan.


PSBank’s tagline is “Simple Lang, Maasahan.” Although PSBank still asks for numerous documents, PSBank keeps it simple by asking only the most necessary ones.

All borrowers must fill out a PSBank Home Loan application form. Appraisal fees asked by the bank should be paid to PSBank. If it’s a check, it should be payable to PSBank (this is non-refundable).

A borrower must have

  • copy of their TCT/CCT
  • CTS (if the property is from an accredited developer)
  • photocopies of a borrower’s marriage contract or a court decision on annulment
  • ertificate of finality of decision (if a borrower is annulled)
  • If legally separated, a photocopy of the court decision on legal separation and certificate of finality of decision.


For employed applicants, they must have their latest COE and ITR/ BIR Form 2316 or 2306. If they are professionally practicing or have a business, they must have their latest BIR Form 1701 and audited financial statement with BIR stamp.


Overseas Filipino applicants who are not immigrant/contractual workers must have a consularized and non-consularized COE, their job contract, and payslip or any proof of remittance for the past three to six months. If an applicant is an immigrant, they must show their payslip for the last three to six months, ITR, and any proof of remittance or payslip.

Refinancing needs several documents on top of the personal ones to be submitted to PSBank. They must have proof of payment of amortization for the last three months as well as their latest statement of account from a mortgagee.

If a borrower is constructing a house, he/she must submit the structure’s floor and building plans, specifications of the building, bill of materials, and estimated construction and labor cost.



Loans are exciting at first. It gives you a sudden boost in your finances, allows you to settle existing payments, and empowers you to invest in something. Then you realize you have to pay for it or think of something you will not be able to buy because of your monthly payments.

But not with Rizal Commercial Banking Corporation (RCBC)’s home loan. On top of your home loan, you also receive a special insurance package from Malayan Insurance Company. It will keep your future home protected for years to come.

RCBC can get up to 80% of your property’s appraisal value, which makes each home loan easier on the pocket. Whether it’s for acquisition, construction or renovation, refinancing or reimbursement, or a home loan take-out, appraisal value of the property will remain the same.

The only difference is the minimum amount for acquisitions, which is at PHP 1M, with the rest starting at PHP 300,000. All of them have the same appraised value, flexible payment terms, one to 20 years collateral, and registered first real estate.

You can also take advantage of MYHOMEBUDGETER LOAN, a multipurpose loan that borrows against the value of all real estate property registered under a borrower’s name. An applicant must be an existing homeowner to qualify.


All borrowers must accomplish the bank’s home loan application form and present:

  • Two valid government-issued IDs
  • Marriage contract (if applicable)
  • Original COEC
  • Latest ITR
  • Company ID are also needed if they are employed locally.


RCBC requires fewer documents for self-employed borrowers:

  • birth certificate
  • business registration with DTI
  • audited financial statements with ITR on top of the application form and government-issued IDs.

To know if their business is earning and capable of repaying the loan, RCBC needs a copy of a borrower’s suppliers and customers. These documents must be submitted with their photocopied collateral documents:

  • TCT
  • Tax Declaration
  • Tax Receipt
  • Tax Clearance, or CTS,
  • location plan or vicinity map of the property

RCBC requires a borrower to have a building plan or bill of materials for construction loans, For loan take-out and acquisition, a borrower should have a statement of account from RCBC’s accredited developers.


Social Security System

Recommended to Congress in 1949 by Elpidio Quirino and implemented on September 1, 1957, the Social Security Commission (SSS) was established for the benefit and protection of wage earners and low-salaried employees.

SSS is the State’s answer to establish, develop, promote, and create a tax-exempt social security system that shall protect its members against disability, sickness, maternity, old age, death, loss of income, and financial burden. It provides various housing loan options for its members, lowering financial burden.

The Direct Housing Loan Facility for Workers’ Organization Members (WOMs) provides socialized and low-cost housing to bonafide SSS members of duly registered and accredited worker organizations. This type of loan may not have the highest loan amount, but it’s enough for those who don’t have enough. Not all people have a home.

WOMs is any Department of Labor and Employment (DOLE)-registered association of workers in the private sector. They can also be registered with the Securities and Exchange Commission as well as the Cooperative Development Authority.

SSS also has low-cost housing for Overseas Filipino Workers (OFWs). Direct Housing Loan Facility for OFWs supports the Philippine government’s shelter program, which provides socialized and low-cost housing to OFWs. It is designed to support the Government’s shelter program to provide affordable homes. You can get a Housing Loan for Repairs and/or Improvements from SSS or through its accredited participating financial institutions (PFIs). A list of these PFIs can be viewed on the SSS website. SSS members in good standing can get an Assumption of Mortgage. This lending program allows them to qualify for an updated principal balance of an existing SSS housing loan.


The Direct Housing Loan Facility for Workers’ Organization Members, Direct Housing Loan Facility for OFWs, and Assumption of Mortgage have several requirements, the fewest on this list.


Organization members who want a housing loan from SSS must be a bonafide member of SSS and a registered workers’ organization in the private sector. OFWs must be a certified OFW and a voluntary member of SSS. Like personal loans, a member must have at least 36 months of premium contributions — 24 of these should have been continuous prior to application.

SSS member

The SSS member should not be more than 60 years old at the time of application (he/she must be insurable). 60-year-old members are only entitled to maximum loan term of five (5) years.

The member must not have been previously granted an SSS housing loan, final SSS benefits, and the member and spouse (if applicable) are updated in the payment of other loans offered by SSS.

A construction loan will only be awarded if it will be used to construct a new house owned by an applicant free from liens/encumbrances. Purchase of a lot is only applicable to new houses and dwelling units, while the purchase of existing residential properties is only applicable to a house and lot, condominium, or townhouse.

The principal applicant for a Housing Loan for Repairs and/or Improvements can only qualify if the member has been a member of SSS. He/she should have at least 36 months-worth of contributions, 24 of which should have been paid to SSS before applying for a home loan.

The member must not have had a repair and improvement loan from the SSS or National Home Mortgage Finance Corporation (NHMFC) as well as final SSS benefits. A borrower and spouse must be in good standing in their payment of their SSS loans.

This loan should be used only on the following: major repairs for dilapidated and structurally unsafe parts of the house, and extension/expansion/enhancement of the house’s economic and aesthetic value.

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