Why is GMI needed in the first place?

Hey there! This is something a lot of buyers ask about, especially when going through housing loan or in-house financing options.

Why do developers require a Gross Monthly Income (GMI)?
GMI helps the developer (or lender) assess if you can afford the monthly amortization for the property. It’s part of their credit evaluation process, particularly when the purchase will be financed through a bank, Pag-IBIG, or the developer’s in-house financing.
Most lenders follow a general rule that your monthly amortization should not exceed 30% to 40% of your gross monthly income. So if your income doesn’t meet that threshold, they might consider you a higher risk for default.

What if your income is not enough?
Yes, you can absolutely have someone else apply with you as a co-borrower.
A co-borrower’s income will be combined with yours to help meet the required GMI. This is a common setup, especially for:
* Married couples

* Siblings

* Parents and children

Some banks or financing institutions also allow non-relatives, but it depends on their policy, so it’s best to check directly with the developer or financing provider.

Just keep in mind that the co-borrower will also be legally responsible for the loan payments, and both your names will appear in the loan agreement and in the title.

If your income falls short, don’t worry because t’s quite common to apply with a co-borrower to make the purchase possible.