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Step-By-Step Guide on How to Get a Pag-IBIG Loan

Key stats about Pag-IBIG housing loan

Being a Home Development Mutual Fund (HDMF), or simply Pag-IBIG, member has its advantages, one of which is availing affordable housing loans.

What are the Pag-IBIG housing loan eligibility requirements?

In January 2017, Pag-IBIG launched an online application process through its website. From 27 days of housing loan application process, it is now cut down to 20 days provided that you have the complete requirements.

From fourteen, the requirements are now minimized to include:

1) duly accomplished housing loan application with recent ID photo

2) proof of income,

3) one valid ID,

4) Transfer Certificate of Title (TCT),

5) updated tax declaration and updated real estate tax receipt,

6) contract to sell, and

7) the vicinity map.

The property will then be investigated including the borrower’s credit information so Pag-IBIG may be able to determine that the borrower has the capacity to pay.

What are the other income documents required?

For locally employed individuals, other supplemental documents may be required.

  1. Notarized Certificate of Employment with Compensation (CEC)
  2. Latest Income Tax Return (ITR)
  3. Certified one (1) month payslip within three months prior to loan application

For self-employed members, the required supplemental documents are any of the following.

  1. ITR, audited financial statement, and official receipt of tax payment from the bank
  2. Commission vouchers bearing the issuer’s name and contact details
  3. Bank statement or passbook for the last 12 months
  4. Copy of lease of contract or tax declaration
  5. Other documents that validate the member’s source(s) of income

For OFWs, the supplemental documents are as follows.

  1. Employment contract or POEA standard contract
  2. CEC with the company’s official letterhead or CEC signed by the employer supported by the employer’s ID or passport
  3. ITR filed with host country

Prior to loan release, another set of requirements must be submitted to Pag-IBIG. These includes:

– TCT in the name of the borrower/co-borrower or Certified True Copy (CTC) of the TCT

– Updated tax declaration and photocopy of updated real estate tax receipt in the name of the borrower/co-borrower

– Loan mortgage documents such as Loan and Mortgage Agreement (registered with Registry of Deeds), Deed of Absolute Sale (registered with Registry of Deeds), notarized promissory note and Disclosure Statement on Loan Transaction

Aside from online loan application, the borrowers may now also apply for a housing loan through its 113 branches nationwide.

In case you want to know, the interest rates of Pag-IBIG acquired properties are the lowest. It offers 5.5% for regular housing loans and 4.5% for minimum wage earners. The loan tenor is up to 30 years.

How can the borrower use the Pag-IBIG housing loan?

Pag-IBIG specifies the purposes of the loan to be availed by the members.

Combing these loan purposes is also possible. For example, Pag-IBIG allows:

What are the steps in applying for a Pag-IBIG housing loan?

The loan can be availed through retail and developer-assisted. When we say retail, the member applies directly to Pag-IBIG. The second is self-explanatory wherein the property developer representative assists the member in processing the housing loan. Through this, the representative may pre-qualify you for the housing loan or recommend a loan structure that is within your eligibility.

The steps when availing the loan through the developer is slightly different. It includes the following steps:

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.

Afterward, the representative will guide you until Pag-IBIG takes out your housing loan.

If you are going to secure the loan from Pag-IBIG yourself, the steps are more detailed.

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).

*You will have 15 working days to do steps 1 to 4.

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.

9) Pay the transfer tax to your local government unit (LGU).

8) Obtain the transfer of the title and annotation of mortgage documents from the Registry of Deeds.

9) Go to the LGU for the transfer of the Tax Declaration.

10) Submit the requirements to Pag-IBIG.

*You will have 90 calendar days to do the steps 7 to 10.

            **Your loan will be ready after five (5) working days.

When receiving your loan proceeds, bring two (2) valid IDs with you. The loan proceeds will be released to the borrower only unless the attorney with SPA needs to receive it if the member cannot do so personally.

Finally, you need to start paying for the monthly amortization one month from the date indicated on the check. For home improvement, the payment shall begin one month from the date on the check of the final loan release.

What are the prevailing interest rates of the Pag-IBIG housing loan?

As of January 1, 2019, Pag-IBIG follows the table of interest below based on the preferred fixed pricing period.

Fixed pricing periodInterest rate
1 year5.375%
3 years6.375%
5 years7.270%
10 years8.035%
15 years8.585%
20 years8.800%
25 years9.050%
30 years10.000%


You may use this table for your Pag-IBIG housing loan computation, bearing in mind that the fixed pricing period is the length of the desired lock-in rates.

Anyhow, Pag-IBIG has a housing loan calculator available on its website that you can use in determining the amount that you can afford. Through this, you will be able to create a monthly amortization table.

Aside from that, the free housing loan calculator can aid in evaluating how much you can borrow based on your income or the value of your property. If you have a desired amount, you may calculate what monthly income may entitle you to avail such amount.

How to pay for the monthly amortization of the Pag-IBIG housing loan?

Pag-IBIG embraces technology, evident not only through applying for a home loan online but also when it comes to paying the monthly amortization. Here are the available payment methods.

  1. Over the counter (Bayad Center, SM Business Centers, MLhuiller, and ECPay)
  2. Over the counter thru banks (MetroBank and LandBank of the Philippines)
  3. Moneygment mobile app thru 7-11 stores
  4. ECPay online thru 7-11 stores

When paying for your loan, make sure you know or have with you the Housing Account Number (HAN).

Other tips when applying for a Pag-IBIG housing loan

Amaia Land offers Pag-IBIG accredited properties in Cavite, Laguna, Tarlac, Batangas, etc.

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