Own your dream home in just 6 easy steps
A PAG-IBIG HOUSING LOAN
with the Pag-IBIG Fund Housing Loan.
Borrow up to P6 million at our lowest-ever
interest rates.
Read more below and learn how to own
your dream home with the Pag-IBIG Fund
Housing Loan!
Ryan Christian F. Manamtam
St. Margeret of Hungary
STEP 1 : COMPLETE THE REQUIREMENTS TO APPLY FOR
These are the requirements that you need to
accomplish and complete to apply for a PAG-IBIG
Housing Loan :
- Housing Loan Application
- Vicinity Map of Property
- Additional Requirements by Loan Purpose
- Proof of income
- Update Tax Declaration and Tax Receipt
- Valid IDs
- Certified True Copy of Title
STEP 2 : SUBMIT YOUR PAG-IBIG HOUSING LOAN
APPLICATION
STEP 3 : RECEIVED YOUR NOTICE OF APPROVAL (NOA)
and Letter of Guaranty ( LOG)
STEP 4 : COMPLETE THE REQUIREMENTS STATED IN
YOUR NOTICE APPROVAL
STEP 5 : RECEIVE YOUR PAG-IBIG HOUSING LOAN
PROCEEDS
STEP 6 : START PAYING YOUR PAG-IBIG HOUSING
LOAN
ABOUT PAG-IBIG …
Pag-IBIG is an acronym which stands for
Pagtutulungan sa Kinabukasan: Ikaw, Bangko,
Industria at Gobyerno. To this day, the Pag-IBIG Fund
continues to harness these four sectors of the society
to work together towards providing Fund members
with adequate housing through an effective savings
scheme.
The Pag-IBIG Fund Regular Savings Program is a
convenient savings facility that gives you high annual
dividend earnings. Your savings is returned upon its
maturity after 20 years, upon retirement or other
grounds. How much should I save monthly? The
monthly Pag-IBIG Savings is pegged at just Php100

What does Pag-IBIG Fund do?

How much can I borrow from Pag-IBIG?
The Home Development Mutual Fund (HDMF),
Qualified members can borrow up to 80% of their total
commonly known as the Pag-IBIG Fund, is a
Pag-IBIG Regular Savings, which consist of their
government-owned and controlled corporation under
monthly contributions, their employer’s contributions,
the Department of Human Settlements and Urban
and accumulated dividends earned. This means that
Development of the Philippines responsible for the
the more you save in your Pag-IBIG Regular Savings,
administration of the national savings program and
the higher loan amount you may apply for via the MPL
affordable shelter financing What is Pag-IBIG and
its benefits?

Pag ibig Fund helps in realizing every Filipinos dream

because it caters housing loans and financing with
lower rates than regular banks. Pag ibig Fund’s
monthly contributions is cheaper than other types of
Mutual Funds. Pag ibig Fund is supported by the
Government, so it won’t likely go bankrupt
How much is the Pag-IBIG salary loan?
How much can I borrow from the Pag-IBIG Salary Loan
program?

Monthly contribution * Allowable amount to loan

What are the services offered by Pag-IBIG Fund?
24 to 59 months * 60% of contribution’s TAV
MP2 Enrollment System. Online Payment (Pag-IBIG I)
Facility (using Visa/MasterCard issued credit cards) 60 to 119 months * 70% of contribution’s TAV
Housing Loan Application. Housing Loan Payment 120 months and over * 80% of contribution’s TAV
Verification How does Pag-IBIG Fund work?

Pag-IBIG Fund guarantees the refund of member’s

savings or Total Accumulated Value (TAV), which How can I get pag-ibig housing loan?
consists of the member’s personal savings, employer
Here are the other important things to do to increase
counterpart (if any), and all dividend earnings upon
your chance of getting approved for a Pag-IBIG housing
occurrence of any of the following grounds:
loaloa
Membership maturity after 20 years and 240 monthly
membership savings • Settle Any Overdue Pag-IBIG Loan Payment.

• Keep a Stable Source of Income.

How is Pag-IBIG salary loanable amount calculated? • Check Your Credit Report and Improve Your Credit
Score.
How to Compute Pag-IBIG Salary Loan Amount.
Calculations are made according to the individual’s • Apply for an Amount You Can Actually Pay Back.
membership term multiplied by his/her monthly
• Make a Higher Down Payment.
contribution. From there, a 60% loan factor is applied.
How much is Pag-IBIG monthly?

Can I loan in Pag-Ibig to buy a house?

You may use the Pag-IBIG Housing Loan to finance any
one or a combination of the following: Purchase of a
fully developed residential lot or adjoining residential
lots not exceeding 1,000 square meters; Purchase of a
residential house and lot, townhouse or condominium
unit . A property mortgaged with Pag-IBIG Fund
Who is eligible for Pagibig housing loan?
AGE: At least 18yrs old and a regular employee but not
more than sixty-five (65) years old at the date of loan
application and must be insurable; provided further,
that he is not more than seventy (70) years old at loan
maturity; 4. Has the legal capacity to acquire and
encumber real property;
How long can you loan a house in Pag-ibig?
30 years
With Pag-IBIG Fund’s Affordable Housing Program
(AHP), it is now easier for minimum-wage and low
income earners to own a home! With monthly
payments as low P2,445.30* per month and terms as
long as 30 years, owning your dream home has never
been this affordable.
On June 2015, Home Development and Mutual
Fund, more popularly known as the Pag-IBIG Fund
(Pag–IBIG is an acronym which stands for
Pagtutulungan sa Kinabukasan: Ikaw, Bangko,
Industria at Gobyerno), released updates of their
housing loan guidelines for their affordable shelter
financing program.
Their notable amendment is the removal of loan
availment limit. Previously, you can only borrow a
single housing loan even though you have the capacity
to pay. Now, you can have multiple housing loan as
long as one does not exceed 6,000,000 pesos
(aggregate loan value — the outstanding balances of
existing housing loans and the loanable amount of the
new housing loan) and the resulting amortization
payments for all loans are within the borrower’s
capacity or income to pay. It is also applicable if one is
a co-borrower for tacked loan. This is a welcome news
for those who are restraint to acquire and build their
real estate assets.
Another update is the lowering of borrowing rates.
You can now borrow with annual interest rate of as
low as 6.5% guaranteed interest rate for the next 3
years (comparable with bank financing), this will be
repriced after 3 years. See above for other repricing
periods. Choosing the comfortable repricing periods
can mean interest payment savings or protection from
rising interest rate risk.
Other updates like the Loan charges see above
presentation and the Loan-To-Appraisal Value Ratio
(see below).
 For developer-assisted housing loans up to
P450,000.00, the loan-to-appraisal value ratio shall be
100%; provided, the developer’s License to Sell is for a
socialized housing project and the borrower’s housing
loan purpose is for the Purchase of a Residential Unit.

For the purchase of Pag-IBIG Fund Acquired Asset, the

loan-to-appraisal value shall be 100%.

A maximum of three (3) qualified Pag-Ibig members

may be tacked into a single secured by the same
collateral; provided, they are related within the second
civil degree of consanguinity of affinity.

Non related co-borrowers may be also be allowed

provided, co-borrower’s are co-owners of the property
offered as collateral, and subject to the approval of the
Branch Manager or higher level of authority.
Loan to appraisal value ratio is one of the criteria in
determining the borrower’s loan amount.

An excerpt from Pag-IBIG Fund Housing Loan Primer

on Loan Amount:

A qualified Pag-IBIG member shall be allowed to

borrow an amount up to 6,000,000, which shall be
based on the lowest of the following: actual need, loan
entitlement based on the capacity to pay, & loan-to-
appraisal-ratio.

A.)Loan Entitlement Based on capacity to pay

A member’s loan entitlement shall be limited to an

amount where the monthly payment shall not exceed
35% of the borrower’s gross monthly income for loans
not exceeding P 1.25 million and 30% of the
borrower’s gross monthly income for loan over P 1.25
millasset

For Government Employees who will be paying their

loan amortization through salary deduction, their Net
Take Home Pay must not fall below the minimum
requirement as prescribed by the General
Appropriations Act (GAA).

B.)Loan-To-Appraisal Value Ratio (see above

presentation)

The loan-to-appraisal value may be adjusted

depending on the results of the Borrower’s Evaluation
System.