Revised Guidelines on Housing Loan Programs

June 22, 2012

SSS CIRCULAR NO. 013-12

 

Pursuant to Social Security Commission (SSC) Resolution No. 252-s.2012 dated 21 March 2012, the revised policy and guidelines of the SSS housing loan programs are hereby issued:

I. Basic Eligibility Requirements

A. Individual

• Member must be a covered employee, self-employed or voluntary OFW member of SSS

• Must have at least 36 monthly contributions and 24 continuous contributions prior to application CEDScA

• Age of member is not more than 60 years old at the time of application and must be insurable; Members aged 60 years old at the time of application will have a maximum loan term of 5 years

• Member has not been previously granted an SSS housing loan

• Member has not been granted final SSS benefits

• Member and spouse are current in the payment of their other SSS loan(s), if any

B. Employer/Corporate/Developer EASIHa

• Must be an SSS member of good standing, i.e., current in the payment of SSS contributions and remittance of SSS loan amortization and that of its employees, if any

• Must have a record of profitability for the last three (3) years

II. Maximum Loan Amount

A. Individual Borrower

•	Individual Loan	P2-M
•	Repair/Improvement Loan	P1-M
•	Apartment/Dormitory Loan	P50-M

The loan amount shall be the lowest of the following:

• Appraised value of collateral of at least 70% but not to exceed 90%;

• Borrower's capacity to pay; or cCHITA

• Actual need of the borrower based on the contract to sell/scope of work and bill of materials as evaluated by the SSS.

B. Corporate Borrower/Developer

•	Apartment/Dormitory Loan	P50-M
•	Development Loan	P150-M

The maximum loan availment period is eight (8) months.

The loan proceeds may be released on a staggered basis but up to a maximum of six (6) tranches.

III. Interest Rates and Repricing

A. Interest Rates caSDCA

	Amount of Loan	Pass-on Rate to	End-Borrower
		PFI
1)	Individual	5.0% p.a.	8.0% p.a.
	Up to P400.000.00	6.0% p.a.	9.0 % p.a
	>P400,000.00 up to P1-M	6.0% p.a.	10.0% p.a.
	>P1-M to P1.5-M	7.0% p.a.	11.0% p.a.
	>P1.5-M to P2-M
2)	Apartment/Dormitory	7.0% p.a.	11.0% p.a.
3)	Development	7.0% p.a.	11.0% p.a.

B. Repricing

Loans with a payment term of not more than 15 years shall bear a fixed interest rate. Loans with a payment term beyond 15 years shall bear a fixed interest rate only during the first 15 years of the loan term but shall be subject to re-pricing every five (5) years starting on the anniversary month of the 15th year.

The interest rates shall be reviewable every six (6) months.

V. Penalty and Default

The loan shall be charged a penalty of 1.5% of the amount due for every month of delay or a fraction thereof.

Loan default is defined as follows: DacASC

• Failure by the borrower to pay SSS at least six (6) monthly loan amortizations (not necessarily consecutive) within a period of one year; or

• Failure by the borrower to fully pay the loan arrears prior to resumption of payment or regular monthly amortization regardless of number of months in default in the payment of monthly loan amortization.

V. Loan Term

The maximum term of housing loans are as follows:

Program	No. of years
Regular Individual Housing Loans	30
Overseas Filipino Worker Loans	15
Repair/Improvement Loans	20
Apartment/Dormitory Loans	20
Development Loans	3 or 5

However, the loan term shall be subject to the following:

• The principal borrower's age shall not exceed 65 years old at the time of loan maturity; and

• The loan term shall not exceed the economic life of the building as determined by the SSS appraiser.

VI. Processing Fee

The borrower shall be charged a processing fee equivalent to 1/2 of 1% of loan amount or P500.00, whichever is higher but not to exceed P3,000.00 to be deducted from the first loan release. HSATIC

VII. Insurance

The housing loan account shall be covered by the following:

• Mortgage Redemption Insurance

• Fire Insurance

• Home Guaranty Corporation, in the case of borrowers under the OFW/TUM Direct Financing Facility

The insurance premiums shall be shouldered by the borrower for the duration of the loan.

VIII. Collateral

The Transfer Certificate of Title/Original Certificate of Title/Condominium Certificate of Title issued by the Registry of Deeds shall be in the name of the principal borrower and free from liens and encumbrances. IcHAaS

For cases the where the purpose of loan is the purchase of residential condominium unit prior to actual construction (pre-selling), other residential property acceptable to SSS shall be submitted as collateral to secure the loan.

The following are not acceptable as collateral:

• Land type other than residential

• Less than 15 sq. meters floor area, in case of condominium aCcADT

• Less than 32 sq. meters lot area

• Road right of way is less than 1.5 meters

• Free/Homestead/Miscellaneous Sales Patent Titles

IX. Payment Mode

Post-dated checks (PDCs) shall be the mode of payment for accounts under the following programs:

• Direct Housing Loan Facility for OFWs

• Direct Housing Loan Facility for Workers' Organization Members ESCcaT

• Repair and Improvement Loan

Initial submission of PDCs shall be for the first 12 months and replaced every year thereafter until the account is fully paid. However, payment through post-dated checks shall be subject to Office Order No. 2011-028. (Handling of Post-Dated Checks), with amendment under Office Order No. 2011-073.

For loans under other housing loan facilities, the existing approved payment channels shall also be used.

All other existing housing loan guidelines not affected by the above revisions shall continue to be in full force and effect.

Please be guided accordingly. cDTSHE

 

(SGD.) EMILIO S. DE QUIROS, JR.President and CEO