Step by Step Guide on How to Apply for Pag-IBIG Housing Loan

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?

1. Fast – From 27 days of application and processing, it is now down to 20 (with complete requirements);
2. Easy – Application can be done online or at any of its 113 branches, with only a few steps to follow and minimal requirements; and
3. 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.

1. Eligibility Requirements which includes:
   1. Housing loan application;
   2. Recent ID picture;
   3. Proof of income;
   4. At least one valid ID;
   5. Transfer Certificate of Title (TCT);
   6. Updated tax declaration and updated real estate tax receipt;
   7. Contract to sell; and
   8. Vicinity map.
2. Income Documents or proof of capacity to pay:
   1. 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.
   2. 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.
   3. 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.
3. Requirements prior to loan release:
   1. Loan mortgage documents such as:
      • Loan Mortgage Agreement;
      • Deed of Absolute Sale;
      • Promissory Note; and
      • Disclosure Statement on Loan Transaction;
   2. TCT under the borrower’s or co-borrowers name; and
   3. Updated tax declaration and photocopy of updated real estate tax receipt in the name of the borrower/co-borrower.

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:

1. Retail or when the member applies directly to Pag-IBIG; or 
2. 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

1. Accomplish the Housing Loan Application (HLA) and Membership Status Verification Slip (MSVS).
2. Secure a copy of the Checklist of Requirements (COR).
3. Submit the HLA with complete requirements.
4. Pay the processing fee of Php1,000 (nonrefundable).
5. Receive the Notice of Loan Approval (NOA)/Letter of Guaranty (LOG).
6. Sign the loan documents.
7. Pay the documentary stamps and capital gains tax at the Bureau of Internal Revenue (BIR). The BIR will issue the Certificate Authorizing Registration.
8. Pay the transfer tax to your local government unit (LGU).
9. Obtain the transfer of the title and annotation of mortgage documents from the Registry of Deeds.
10. Go to the LGU for the transfer of the Tax Declaration.
11. Submit the requirements to Pag-IBIG.
12. 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

1. Reserve the property of your choice.
2. Pay the reservation fee.
3. Fill out the loan application.
4. Sign all the documents that the representative will give you.
5. The representative will process the loan with Pag-IBIG.
6. Wait for the confirmation and further instructions from the representative.
7. 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:

1. 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.
2. Construction or completion of a residential unit on a member-owned lot;
3. Home improvement that aims to enhance the durability and material value of the property; and
4. 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