Ready to Own a Home? Check Out This SSS Housing Loan Guide

Rouselle Isla

Rouselle Isla

Last updated May 19, 2023

Even if real estate property valuations in the Philippines are in the millions, purchasing a home isn’t impossible. Thanks to housing loans, you can buy a house even if you don’t have a significant amount in your bank account.   

The SSS Housing Loan is one of the financing options which can make your homeowner dreams a reality. In this article, learn more about this type of loan, its features, requirements, and application process. 

What is the SSS Housing Loan?

Qualified members can apply for the SSS Housing Loan, which is designed for purchasing a house and lot, funding a home construction or improvement, or home loan assumption. SSS offers various housing loan options catering to different needs. 

👉 SSS Housing Loan Eligibility Requirements 

Before anything else, check if you meet the following SSS Housing Loan requirements: 

  • At least 36 monthly contributions (and 24 continuous contributions before the loan application
  • Must be insurable and not older than 60 at the time of application (applicants older than 60 will have a maximum loan term of five years)
  • Must have no existing SSS housing loan 
  • Has not been granted final SSS benefits
  • Must have no SSS or NHMFC repair and/or improvement loan
  • Must have up-to-date payments of other SSS loans, if any

SSS Housing Loan: What Are Your Options?

Here are the housing loan options you can avail of depending on your needs: 

  • Direct Housing Loan Facility for Workers' Organization Members
  • Direct Housing Loan Facility for OFWs
  • House Repair/Improvement Loan
  • Assumption of Mortgage

Learn more about each option below.

 

📌 Direct Housing Loan Facility for Workers' Organization Members (WOMs)

sss housing loan - direct housing loan facility for wom

The Direct Housing Loan Facility for Workers’ Organization Members (WOMs)[1] provides socialized and low-cost housing to legitimate members of duly registered and accredited workers' organizations. 

This can be any association of workers (national/local/independent unions, federations, trade union centers) in the private sector registered with the Securities and Exchange Commission, the Department of Labor and Employment, or the Cooperative Development Authority. 

Loan Amount

You can borrow up to ₱2 million, depending on the housing loan type. For the Socialized Housing Loan, you can borrow up to ₱450,000. Meanwhile, with a Low-Cost Housing Loan, you can borrow anywhere from ₱1 million to ₱2 million. 

The approved SSS Housing Loan amount will be based on the borrower’s actual need, capacity, and the collateral’s appraised value (at least 70% but not over 90%).

Up to three qualified SSS members can combine their loanable limits if they have the same collateral and are related within the first degree of consanguinity or affinity. 

Interest Rates and Loan Terms 

You can pay off your housing loan in multiples of five years up to 30 years. The interest rates are as follows: 

Loan Amount Interest Rate
Up to ₱450,000 8% p.a.
₱450,000 to ₱1 million 9% p.a.
₱1 million to ₱1.5 million 10% p.a.
₱1.5 million to ₱2 million 11% p.a.

 

Requirements

Prepare the following SSS housing loan requirements and submit them when filing your loan: 

  • Original copies of: 
    • Mortgagor's Application for Housing Loan (affix a 1x1 ID photo of principal borrower and spouse) 
    • Certificate of membership in a worker’s organization
    • Certificate of Loan Eligibility 
    • Employer's Certification
    • Latest two months' payslips (certified by employer)
    • For lot/house and lot purchase: Contract to Sell/Deed of Sale (with a statement of the latest balance)
    • Confirmation of Completion and Appraisal 
    • Certificate of Acceptance and Occupancy (if the house is 100% complete at the time of loan application)
  • Original and photocopy of: 
  • Latest ITR (with Form W-2 and Confirmation Receipt of Payment)
  • Owner’s copy of original TCT/CCT
  • Latest Property Tax Declaration and Realty Tax Receipt

You'll also need to provide the following documents: 

  • Lot plan with vicinity map (signed and sealed by a registered geodetic engineer or surveyor
  • Photos of the house/building plans and specifications 
  • 12 postdated checks
  • Tax Mapping/Subdivision Plan

📌 Direct Housing Loan Facility for OFWs

sss housing loan - ofws

This type of SSS Housing Loan is for Overseas Filipino Workers who want to avail of the agency’s socialized and low-cost housing program. 

An OFW is a worker from the private sector who: 

  • Is currently deployed abroad with an Embassy-authenticated or POEA-processed contract 
  • Has an employment contract awaiting deployment or renewal 
  • Is a Filipino national who’s an immigrant or citizen of another country
  • Is a Filipino who’s a long-term resident overseas

To be eligible for the Direct Housing Loan Facility for OFWs,[2] the borrower must also be a Voluntary SSS Member. 

Loan Amount 

The maximum loanable amount for this SSS housing loan is ₱2 million. You can borrow up to ₱450,000 for the Socialized Housing Loan and up to ₱2 million for the Low-Cost Housing Loan.

Like the Direct Housing Loan for WOMs, the approved SSS Housing Loan amount will depend on the borrower’s need, capacity to pay, and the collateral’s appraised value (at least 70% but not over 90%).

You can combine your loanable limits with up to three qualified SSS members if you’re related within the first degree of consanguinity and have the same collateral. 

Interest Rates and Loan Terms

The Direct Housing Loan Facility for OFWs is payable in multiples of five years up to 15 years. Its loan term should not be longer than the economic life of the building, which the SSS appraiser will determine. 

Here are its interest rates based on the loan amount: 

Loan Amount Interest Rate
Up to ₱450,000 8% p.a.
₱450,000 to ₱1 million 9% p.a.
₱1 million to ₱1.5 million 10% p.a.
₱1.5 million to ₱2 million 11% p.a.

 

Requirements

Prepare the following SSS housing loan requirements and submit them when filing your loan: 

  • Original copies of: 
    • Mortgagor's Application for Housing Loan (affix a 1x1 ID photo of principal borrower and spouse) 
    • POEA/OWWA/DOLE Certification or certification from the Philippine Consular/SSS Foreign Representative Office
    • Certificate of Loan Eligibility 
    • Contract to Sell/Deed of Sale (with a statement of the latest balance)
    • Appraisal Report
    • Certificate of Acceptance and Occupancy (if the house is 100% complete at the time of loan application)
    • Notarized Special Power of Attorney (if filing through a representative)
  • Original and photocopy of: 
    • Latest Contract of Employment and Employer’s Certification
    • Owner’s copy of original TCT/CCT/OCT
    • Certified True Copy of TCT/CCT/OCT
    • Latest Property Tax Declaration and Realty Tax Receipt

You will also need to provide the following documents: 

  • Lot plan with vicinity map (signed and sealed by a registered geodetic engineer or surveyor)
  • Photos of the house/building plans and specifications 
  • 12 postdated checks
  • Tax Mapping/Subdivision Plan
  • Affidavit of Undertaking to continue paying off SSS contributions while paying off the housing loan

📌 SSS Housing Loan for Repairs and/or Improvements

sss housing loan - for repairs and improvements

This loan[3] can finance significant repairs and improvements on structurally unsafe or dilapidated housing units. Improvements are as follows: 

  • Expansion/extension/enhancement of an existing housing unit
  • Completion of a bare house (occupied)  
  • Construction of steel gate and concrete fence
  • Installation of a motor pump and deep well 

You can apply for this loan at SSS or any accredited participating financial institution (or PFI). 

Loan Amount, Interest Rate, and Loan Terms 

You can borrow up to ₱1 million with this housing loan and pay it off in multiples of five years for up to 20 years. For OFWs, the maximum loan term is 15 years. 

The interest rate is 9% p.a. Loan terms not longer than 15 years will have a fixed interest rate. Loans with payment terms of more than 15 years will be subject to repricing every five years beginning on the anniversary month of the 15th year. 

Requirements

Here are some of the documents you need to submit when you apply: 

  • Two copies of the Application for Direct House Repair and/or Improvement Loan
  • SS ID card or principal applicant and spouse 
  • Certified true copy and owner’s duplicate copy of OCT/TCT/CCT issued by the Registry of Deeds
  • Latest Tax Declaration of Real Property with receipt 
  • For employed borrowers: 
    • Latest ITR (original and photocopy)
    • Certification of Employment and Compensation duly signed by authorized signatory  
    • Two months’ latest payslips
  • For self-employed borrowers: 
    • ITR and Financial Statements for the last three months (original and photocopy)
  • For overseas workers: 
    • Contract of Employment 
    • Certification of Employment and Compensation authenticated by the SSS Foreign Representative or Philippine Consulate
  • Building plan, specifications and Bill of Materials and Labor, Scope of Works
  • Building or Renovation Permit


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📌 Assumption of Mortgage

sss housing loan - assumption of mortgage

This Assumption of Mortgage program by the SSS allows members in good standing to assume the updated principal balance of an existing SSS housing loan.[4]

The assumed amount will be transferred to the borrower or mortgagor, who will be assigned a new account number for paying the monthly amortizations. The monthly amortization will start within the first 10 days of the following month after the account has been journalized.  

Loan Amount, Interest Rate, and Loan Terms 

The loanable amount is up to ₱2 million. However, the amount should not exceed the updated loan balance of the account to be assumed. 

Like the other types of SSS Housing Loans, you can pay off your loan in multiples of five years. But it should not be longer than the house's economic life and the old mortgage's remaining term. It should also not exceed the difference between 65 and the age of the borrower/applicant.

The following interest rates will apply on the SSS Assumption of Mortgage: 

Loan Amount Interest Rate
Up to ₱450,000 8% p.a.
₱450,000 to ₱1 million 9% p.a.
₱1 million to ₱1.5 million 10% p.a.
₱1.5 million to ₱2 million 11% p.a.

 

Any default in loan amortization payment will incur a 1.5% penalty for every month of delay. Failure to pay at least six monthly amortizations may lead to SSS Housing Loan foreclosure. 

Requirements

  • Mortgagor's Application for Housing Loan (affix a 1x1 ID photo of principal borrower and spouse) 
  • Latest ITR (original and photocopy) with Form W-2 and Confirmation Receipt
  • SS Form E-1 and E-4 (if any) 
  • Certification of Employment and Compensation signed by authorized signatory
  • SSS Premium Contributions signed by authorized signatory
  • For self-employed: 
    • SS Form RS-1
    • Employer Membership Certificate and Business License
  • For Overseas Filipino Workers: 
    • Certification and Contract of Employment (authenticated by the Philippine Consulate)
  • Deed of Sale with Assumption of Mortgage 
  • Latest Statement of Account from the Investment Accounting Department (IAD)
  • Affidavit of Undertaking to continue paying off SSS contributions while paying off the housing loan

How to Apply for a Housing Loan in SSS

Once you have all your documents and requirements, you can file your loan application at the nearest SSS cluster branch. You may also proceed to the Housing and Business Loans Department at the SSS Building on East Avenue, Diliman, Quezon City. 

As mentioned, those applying for the SSS housing construction loan can also proceed to any accredited PFI. 

Want to know how to apply for an SSS Housing Loan online? Unfortunately, all SSS Housing Loan applications must be made at SSS branches or SSS-accredited participating financial institutions. 

Related reading:

SSS Housing Loan vs. Pag-IBIG Housing Loan

Like the SSS Housing Loan, the Pag-IBIG Housing Loan is available to active members up to 65 years old who want to purchase a home. But it has a higher loanable amount of up to ₱6 million. Moreover, you only need a minimum of 24 monthly savings to qualify. It also has lower interest rates starting at 5.75% for a one-year fixing period. 

The SSS Housing Loan, on the other hand, is less known than its Salary or Calamity Loans. But it’s also an excellent option for Filipinos looking to buy low-cost housing, fund constructions, or avail of home loan assumptions. 

Final Thoughts

Consider your government benefits like the SSS Housing Loan. It can be the right option for your needs as a homeowner. Find out your eligibility and complete your documents for a hassle-free application!

Looking for other options outside of housing loans? Check out some personal loans below and apply easily through Moneymax:

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Sources: 

Rouselle has over eight years of writing experience in the personal finance niche. She has written feature stories, articles, and how-to guides on various personal finance and trending lifestyle topics. Before that, she briefly worked in banking and was a licensed life insurance advisor. When not writing, Rouselle likes to read books and binge-watch films and series. Follow Rouselle on Linkedin.

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