Financial Blog

Are you thinking of renovating or improving your current home? The Social Security System (SSS)  is providing a Housing Loan for its eligible members. The process of applying for an SSS Housing Loan for Repairs and/or Improvements in the Philippines involves several steps. 

Here’s a detailed guide:

SSS Housing Loan Eligibility Requirements:

• Be a member of SSS with at least 36 months of contributions, with 24 continuous contributions in the past 24 months.

• Be within the age limit (not exceeding 60 years old at application).

• Have no existing unpaid SSS loans.

• Have not yet availed of final SSS benefits.

• You (and your spouse, if applicable) must be updated in paying any other SSS loans.

SSS Housing Loan Application Process:

Gather Required Documents:

• Application for Direct House Repair and/or Improvement Loan (2 copies):
  You can download this form from the SSS website here.

• Photocopies of your and your spouse’s (if applicable) SS ID cards.
  In the absence of SS ID cards, submit any two (2) valid IDs with signature, at least one (1) with photo (original and photocopy for authentication)

• Proof of income:

• For employed individuals:
  Latest Income Tax Return (original and photocopy) and a Certification of Employment and Compensation with signature from your employer’s SSS authorized signatory (original copy), along with your two most recent monthly payslips.

• For self-employed/business owners:
  Audited Financial Statements for the past 2 years.

• Certified true copy of the Original/Transfer/Condominium Certificate of Title (OCT/TCT/CCT) issued by the Registry of Deeds:
  This document should be accompanied by the owner’s duplicate copy.

• For Condominium Units:

• Floor plan of the specific unit (scaled with dimensions, 20″ x 30″ size, blue/white print copy) signed and sealed by a licensed architect or civil engineer.

• Architectural Plans showing the specific floor where the unit is located (scaled with dimensions).

• First page of the condominium building plans showing the site development plan, vicinity map, etc., as approved by the Building Official.

Complete list of requirements can be found here.

Choose your preferred loan option:

• Direct Loan: You can directly apply through SSS branches.

• Accredited Participating Financial Institution (PFI): SSS has partnered with various banks that offer the SSS Housing Loan program. Contact SSS to confirm the current list of accredited PFIs.

Submit your application:

• For Direct Loan: Submit the application form and all necessary documents to your nearest SSS branch.

• For PFI Loan: Inquire with your chosen PFI about their specific application process and requirements. They might have additional documents needed.

Property Appraisal:

• SSS will arrange for an SSS-accredited appraiser to assess the property and determine the estimated repair/improvement cost.

Loan Approval and Release:

• Once your application is approved, you’ll be notified by SSS (or the PFI, if applicable).

• You’ll need to complete additional documents and comply with specific procedures before the loan proceeds are released.

Additional Information:

• Processing time can vary, so plan accordingly.

• There’s a processing fee equivalent to ½ of 1% of the loan amount or ₱500 (whichever is higher), but not exceeding ₱3,000. This fee will be deducted from the first loan release.

• An inspection fee of ₱500 applies for both locations within and outside Metro Manila.

You may contact SSS for further inquiries: 

• SSS Call Center: 920-6446 up to 55 or 917-7777

• Email: [email protected]

SSS Housing Loan: Pros and Cons

Pros:

• Compared to traditional bank loans, SSS has milder qualifying factors. You don’t need a perfect credit score, and eligibility mostly hinges on your SSS contributions.

• SSS offers competitive rates compared to other loan options. This translates to lower monthly repayments, making the loan more manageable.

• The extended payment period (up to 30 years) allows borrowers to spread out the cost significantly, easing the financial burden.

• SSS provides flexibility by offering a direct loan or one facilitated through accredited banks. You can choose the option that best suits your needs and preferences.

Cons:

• While less strict than banks, SSS still has requirements. You need to be a contributing member for a minimum period, be within a specific age range, and have no outstanding SSS loans.

• Gathering documents and navigating the application process can be time-consuming compared to some other lenders.

• The maximum loanable amount might not be enough to cover the entire cost of your desired property, especially in high-value areas.

• SSS may impose limitations on the type of property you can renovate with the loan.

Additional factors to consider

• Early settlement fees: There might be penalties for paying off the loan ahead of schedule.

• Interest accrues during construction: If the property is under construction, interest on the loan amount might start accumulating even before you occupy the house.

Overall, the SSS Housing Loan can be a beneficial option for SSS members especially those with a stable income and a good contribution history. However, it’s crucial to carefully weigh the pros and cons, considering your financial situation and long-term goals.

It’s also recommended to compare SSS options with other housing loan providers like Pag-IBIG to ensure you get the most suitable and cost-effective financing for your needs.

Remember:

1. It’s crucial to thoroughly assess your financial situation and ensure you can comfortably manage the monthly repayments over the long term.
2. While the SSS Housing Loan offers advantages, it’s wise to compare it with other housing loan options like Pag-IBIG to find the most suitable and cost-effective solution for your specific needs.
3. It’s advisable to consult with an SSS representative directly for the most up-to-date information and specific requirements applicable to your situation. They can guide you through the process and address any questions you might have.