Assumption of Mortgage

  1. Loanable Amount

    The maximum loanable amount is P2,000,000 but should not exceed the updated loan balance of the account assumed.

    1. Appraised value of collateral of at least 70% but not to exceed 90%;
    2. Borrower's capacity to pay; and
    3. Actual need of the borrower based on the contract to sell/scope of work and bill of materials evaluated by the SSS.

  2. Interest Rate

    1. Up to P450,000.00 - 8% p.a.
    2. Over P450,000.00 up to P1,000,000.00 - 9% p.a.
    3. Over P1,000,000.00 up to P1,500,000.00 - 10% p.a.
    4. Over P1,500,000.00 up to P2,000,000.00 - 11% p.a.

  3. Term of the Loan

    The amortization period shall be in multiples of five (5), but shall in no case exceed:

    1. The remaining term of the old mortgage;
    2. The economic life of the house; and
    3. The difference between the age of the applicant and 65.

  4. Allowable Collateral/s

    The collateral shall be the house and lot which is the subject of the mortgage to be assumed.

  5. Insurance

    The housing loan account should be covered by a Mortgage Redemption Insurance and Fire Insurance.

    The insurance premiums shall be shouldered by the borrower.

  6. Loan Release

    The amount assumed is transferred to the mortgagor. A new account number will be assigned to be used in paying the monthly amortization of the loan.

  7. Manner of Payments

    The regular monthly amortization payment shall start within the first ten (10) days of the succeeding month after the account has been journalized. Prior to journalization, the applicant shall continue paying the monthly amortization for the account of the original mortgagor.

  8. Default in Payment of Amortization

Any unpaid loan amortization shall bear a penalty of 1.5% for every month of delay. If the mortgagor fails to pay at least six (6) monthly amortizations, the SSS may immediately foreclose the mortgaged property.

For more information contact the SSS Housing and Business Loans Department in Quezon City with telephone number 920-64-01 local 5121 to 5127 or at or to the SSS office nearest you.