The most availed type of loan from the Home Development Mutual Fund (HDMF) or Pag-IBIG Fund, especially to its Overseas Filipino Workers (OFW) members, is the housing loan. Pag-IBIG Housing Loan is known for its three advantages:
Why choose the Pag-IBIG Housing Loan?
- Fast – From 27 days of application and processing, it is now down to 20 (with complete requirements);
- Easy – Application can be done online or at any of its 113 branches, with only a few steps to follow and minimal requirements; and
- Affordable – Only 5.5% interest rate for regular and 4.5% for minimum wage earners, payable for 30 years.
Read Also: Pag-IBIG Fund Contributions Withdrawals and Claims
What are the requirements?
The most crucial detail when applying for Pag-IBIG Housing Loan is the documentary requirements, but it is not as difficult as it seems. Take a closer look as we enumerate the requirements for the Pag-IBIG Housing Loan, strategically divided based on their uses.
- Eligibility Requirements which includes:
- Housing loan application;
- Recent ID picture;
- Proof of income;
- At least one valid ID;
- Transfer Certificate of Title (TCT);
- Updated tax declaration and updated real estate tax receipt;
- Contract to sell; and
- Vicinity map.
- Income Documents or proof of capacity to pay:
- For employed members:
- Notarized Certificate of Employment with Compensation (CEC);
- Latest Income Tax Return (ITR); and
- Certified one (1) month payslip within three months prior to the loan application.
- For self-employed, ANY of the following:
- ITR, audited financial statement, and official receipt of tax payment from the bank:
- Commission vouchers;
- Bank statement or passbook for the last 12 months;
- Copy of lease of contract or tax declaration;
- Other documents that validate the member’s source(s) of income.
- For OFWs:
- Certificate of Employment with Compensation (CEC);
- Latest Income Tax Return (ITR); and
- Certified one (1) month payslip within three months prior to the loan application.
- For employed members:
- Requirements prior to loan release:
- Loan mortgage documents such as:
- Loan Mortgage Agreement;
- Deed of Absolute Sale;
- Promissory Note; and
- Disclosure Statement on Loan Transaction;
- TCT under the borrower’s or co-borrowers name; and
- Updated tax declaration and photocopy of updated real estate tax receipt in the name of the borrower/co-borrower.
- Loan mortgage documents such as:
Read Also: How to check your Pag-IBIG contributions online?
How to apply to Pag-IBIG Housing Loan?
There are two ways to apply for the Housing Loan:
- Retail or when the member applies directly to Pag-IBIG; or
- Developer-assisted in which a property developer shall assist and pre-qualify the borrower, and recommend loan structure suited for the borrower.
The steps for the two are slightly different.
Steps for Retail or Direct Application
- Accomplish the Housing Loan Application (HLA) and Membership Status Verification Slip (MSVS).
- Secure a copy of the Checklist of Requirements (COR).
- Submit the HLA with complete requirements.
- Pay the processing fee of Php1,000 (nonrefundable).
- Receive the Notice of Loan Approval (NOA)/Letter of Guaranty (LOG).
- Sign the loan documents.
- Pay the documentary stamps and capital gains tax at the Bureau of Internal Revenue (BIR). The BIR will issue the Certificate Authorizing Registration.
- Pay the transfer tax to your local government unit (LGU).
- Obtain the transfer of the title and annotation of mortgage documents from the Registry of Deeds.
- Go to the LGU for the transfer of the Tax Declaration.
- Submit the requirements to Pag-IBIG.
- After 5 working days, the loan will be ready. When receiving your loan proceeds, bring two (2) valid IDs with you.
Steps for Developer-Assisted Application
- Reserve the property of your choice.
- Pay the reservation fee.
- Fill out the loan application.
- Sign all the documents that the representative will give you.
- The representative will process the loan with Pag-IBIG.
- Wait for the confirmation and further instructions from the representative.
- The representative will guide you until Pag-IBIG releases your housing loan.
Read Also: New SSS Coding Scheme | Based on Last Digit of SS or ER Number
Use of Pag-IBIG Housing Loan
Pag-IBIG is strict in the use and purpose of the Housing Loan. It provides a list of possible and legal ways for the borrower to use the acquired Housing Loan:
- Purchase of:
- A fully-developed lot within a residential area, not more than 1,000 square meters;
- Pre-owned or brand new residential house and lot, townhouse or condo unit including the parking lot; or
- Fund-mortgage property or an acquired asset.
- Construction or completion of a residential unit on a member-owned lot;
- Home improvement that aims to enhance the durability and material value of the property; and
- Refinancing of an existing mortgage to Fund-accredited institution provided that:
- the loan is not in default within 12 months; and
- Repayment history is at least 2 years.
What are the Interest Rates?
Fixed Pricing Period
(years) |
Interest Rate
(%) |
1 | 5.375 |
3 | 6.375 |
5 | 7.270 |
10 | 8.035 |
15 | 8.585 |
20 | 8.800 |
25 | 9.050 |
30 | 10.000 |
Read Also: Invest in Pag-IBIG MP2 Program | Government Guaranteed Earnings
What are the Payment Methods?
The borrowers of Pag-IBIG Housing Loan can pay their monthly amortization through the following methods:
- Bills Payment Centers (Bayad Center, SM Business Centers, MLhuiller, and ECPay);
- Bank Transfer or Deposits (MetroBank and LandBank of the Philippines);
- Moneygment mobile app thru 7-11 stores; and
- ECPay online thru 7-11 stores.
Source: Pag-IBIG
How to avail housing loan po,
Please refer to the article.