Pag-ibig Housing Loan Application: Complete Guide

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We all dream of having our own house someday. Every Filipino is working very hard to achieve this dream. Most of us sometimes do not only want a basic house or just a so-so roof over our heads but a comfortable and decent house. Unfortunately, financial constraints restrict our plans to construct or buy a house. The majority of Filipinos especially those who belong to poverty and middle class cannot afford to build or buy a house on a cash basis. This is not only true in the Philippines but as well as with other foreign countries.


One of the answers to this big problem is to loan money and use the money for the construction of the house but most of the lenders are charging high-interest rates. Good thing there’s Pag-ibig Housing Loan. The Pag- ibig housing loan program the Philippine government’s home loan facility specially designed for minimum and low wage earners. The Philippine government’s initiative on providing affordable and flexible loan terms to minimum wage earners provides a big chance for low-income workers to achieve their dream of building their own house.

Kindly refer below for the steps on how to apply for the Pag-ibig’s Housing Loan:

A. Verify first if you are qualified for the Pag-ibig Housing loan.

Qualifications:
  • A Pag-ibig member that has contributed at least 24 months. 
  • Not more than 65 years old during application and not more than 70 years old during loan maturity.
  • Possesses a legal capacity to acquire and encumber real property.
  • Passed the background check conducted by the Pag-ibig Fund.
  • Must not have an existing Pag-ibig loan that was foreclosed, canceled, bought back due to default, or subjected to dacion en pago (giving back the property mortgaged to the lender).
  • Must not be a co-borrower of an existing Pag-ibig loan.

B. Identify your reason for applying for a Pag-ibig loan.

There are different reasons why you are applying for the Pag-ibig loan. Building a house is one of the main reason but you may also use the loan for other purposes that are connected in building a house such as:
  • Purchasing a completely developed residential lot or adjoining residential lots not exceeding 1,000 sq.m. 
  • Purchasing a ready for occupancy residential house and lot, condominium unit, or townhouse (inclusive of the parking lot). The property can be new, old/pre-owned, an acquired asset of the Pag-IBIG Fund, or adjoining houses and lot/condominium units/rowhouses/townhouses.
  • Construct a house on a residential lot either owned by you or a relative.
  • House renovation
  • Refinance an existing housing loan but you must remember that Pag-ibig needs to accept the institution where you previously borrowed money from to start building your house. Your account in Pag-ibig must also be at least 1 year updated upon application.

C. Select the Pag-ibig Housing Loan that suits your current income status 

Affordable Housing Loan Program
This is offered exclusively for low-income workers with a gross monthly income not exceeding Php 17,500.

The minimum wage earners can borrow as big as Php 750,000 with the lowest interest rate and low monthly payment. For example, a borrower who was able to borrow Php 450,000 can pay as low as Php 2,000 per month with an interest rate of only 3% for the first five years.

Regular Housing Loan Program
Intended for applicants who are above average monthly earners. They can borrow up to Php 6 Million with an interest rate of 5.375 % (one year fixed pricing period).

D. Gather all the requirements for Pag-ibig Housing Loan.

Kindly refer below for the requirements:

FEES
  • Processing fee (non-refundable) of Php 1,000
  • Appraisal Fee of Php 2,000
  • If you need re-evaluation or re-filing of your documents, you need to pay Php 1,000 each time you avail of this service.

DOCUMENTS
  • Pag-ibig Housing loan form with recent ID picture
  • Vicinity map and a sketch of the house or property 
  • Real Estate tax receipts and Tax declaration copies
  • The latest true and certified copy of the Transfer Certificate of Title 

Employees need to bring the following as proof of their income:

1. Certificate of Employment and Compensation ( CEC). This certificate should indicate your gross income, allowances and monetary benefits

2. Income tax return

You are required to secure a photocopy of your valid ID, your husband or wife, owner of the title, seller, and the co-borrower if applicable.
Below are the valid IDs accepted by Pag-ibig Fund:
  • Social Security System (SSS) ID 
  • Overseas Workers Welfare Administration ID (OWWA)
  • Professional Regulation Commission ID (PRC)
  • Company ID
  • Postal ID
  • Passport
  • Driver’s License
  • GSIS e-card
  • Government Office and GOCC ID (e.g. AFP ID, Pag-IBIG Loyalty Card
  • Integrated Bar of the Philippines (IBP) ID
  • Senior Citizen Card
  • Voter’s ID
  • Seafarer’s Identification and Record Book (SIRB)
  • Overseas Filipino Worker (OFW) ID

Pag-ibig Housing Loan Requirements for House Construction 

After your application, you need to secure the following: 
Fees:
  • Php 2,000 upon releasing the loan
  • Php 1,000 for every inspection ( Above 4 Assessments)
  • Php 2,000 handling fee for any additional payment issued in regards to spilled loan proceeds

Documents:

The following documents are mandatory:
  • CCT or TCT in your name with a mortgage annotation favoring Pag IBIG
  • Updated real estate receipts and tax declaration 
  • Disclosure statement on the transaction 
  • Complete promissory note 

Other additional requirements for Pag IBIG housing loan eligibility include the following where applicable: 
  • Surety bond 
  • Collection servicing agreement. it should have an authority to deduct loan amortization as well as post-dated checks 

For buying many residential units, you will need
  • Deed of absolute sale with an original RD signatory. 
  • Occupancy permit if the unit is new 

For lot purchase with the construction of the house: 

1. Deed of absolute sale duly with an original RD stamp 
2. Occupancy permit 
3. The approved sanitary, building and electrical permits 

Pag IBIG housing loan computation 

To know the amount of money you are allowed to borrow from the regular. Pag IBIG considers the following: 

a. The total amount you need to complete/buy the house 
b. The actual loan you applied for
c. Loan-to-appraised value ratio 
d. Your current salary or income will determine your capacity to pay the loan.

Limitations on loans also depend on your monthly savings contributions. The higher you save, the greater your credit amount will be as suggested below: 

● Php. 200 monthly contribution attracts a possible loan amount of up to Php. 500,000 
● Php. 250 – Php. 500,000 to Php. 600,000 
● Php. 300 – Php. 600,000 to Php. 700,000 
● Php. 350 – Php. 700,000 to Php. 750,000 
● Php. 400 – Php. 800,000 to Php. 900,000 
● Php. 450 – Php. 900,000 to Php. 1,000,000 
● Php. 500 – Php. 1,000,000 to Php. 1,100,000 
● Php. 550 – Php. 1,100,000 to Php. 1,200,000 
● Php. 600 – Php. 1,200,000 to Php. 1,300,000 
● Php. 650 – Php. 1,300,000 to Php. 1,400,000 
● Php. 700 – Php. 1,400,000 to Php. 1,500,000 
● Php. 750 – Php. 1,500,000 to Php. 1,600,000 
● Php. 800 – Php. 1,600,000 to Php. 1,700,000
● Php. 850 – Php. 1,700,000 to Php. 1,800,000
● Php. 900 – Php. 1,800,000 to Php. 1,900,000 
● Php. 950 – Php. 1,900,000 to Php. 2,000,000 
● Php. 1,000 – Php. 2,000,000 to Php. 2,100,000 
● Php. 1,500 – Php. 3,000,000 to Php. 3,100,000 
● Php. 2,000 – Php. 4,000,000 to Php. 4,100,000 

Repricing Period in Pag-ibig Housing Loan:

After your loan was approved and released you now need to pay for the interest. For example, if you select the 1-year fixed price option, you are guaranteed to pay only  5.375% in the first year. Once the period is over, rates will vary. Rates will fluctuate up or down depending on some factors. You may select a repricing period of 1 to 30 years to avoid future fluctuations. 

After the completion of all the requirements, you may now head to any Pag-ibig Fund branch and submit your application.

You can also apply online. For online application, refer below for the steps:
1. Open the Pag-ibig Virtual Portal
2. You must have an existing account, if not then create one
3. Use your details to log in
4. Click “Manage Loans”
5. Select “Apply for Housing Loan” and click continue
6. If this is your first time applying for a housing loan click “Apply for a Housing Loan” if not then go to “Reschedule Housing Loan Application Appointment.” 
7. Fill-out Pag-ibig Housing loan form
8. A new questionnaire will appear. Enter your preferred branch, credit, and personal information. 
9. After completing the details click submit.
10. You will receive a reference number and an email to book an appointment with Pag IBIG nearest office and the contacts of the person you will be dealing with. 

4. Wait for approval:
Pag IBIG housing loan verification takes an average of 17 days. In case your request was not approved, you will receive a Notice of Disapproval. If it was approved, the agency will notify you to pick up your Notice of Approval (NOA) and Letter of Guaranty (LOG) 

5. Sign loan documents: 
After receiving the LOG and NOA, you must go to the Members’ Services department. Discuss credit obligations with customer care. Make sure you completely understand all the terms in the following documents: 
  • Promissory note 
  • Disclosure statement on the credit transaction 
  • Loan and mortgage agreement 
Affix your signature only if you have completely understood them. 

6. Complete the NOA prerequisites: 
You must submit it within 90 days of issuance failure to do so will result in failure to access the credit. 

7. Claim loan proceeds. 

How to Pay Pag-ibig Housing Loan

Payment options available for you:


a. Post-dated checksSubmit 12 post-dated cheques to the Pag IBIG Fund upon a loan release.

b. Salary deduction: Submit an authority to deduct document to the billing division. 
  • Verified collection partners 
  • Auto debit bank arrangement 
  • Payments via an accredited developer with a collection service agreement from the Pag IBIG agency. 

How to Contact Pag-Ibig

You can contact the customer care representatives thru the following channels:
  • Head office location: Petron Mega Plaza, Puyat Avenue, Makati City Phone number: (02) 8-422-3000 
  • Mailing address for members relation: 2nd Flr, JELP Business Solution Center, 409 Shaw Boulevard, Brgy. Addition Hills, Mandaluyong City, Philippines 
  • Hotline: 8-724-4244 
  • Email: [email protected] 
  • Website: pagibigfund.gov.ph 
The Pag-ibig Housing Loan is one of the best options we have when it comes to financing our dream house. Their interest rate is way lower than other lending companies. Karie | Helpline PH
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