You, too, can have the means to have your very own home.

Even if you’re a low- or middle-income Filipino, you, too, can afford to build or buy your own home. The government-mandated Home Development Mutual Fund, more popularly known as the Pag-IBIG Fund, gives its contributing members the power to finance their home purchase at a more affordable rate, as compared to the rates offered by real estate developers and banks. So you don’t have to worry about facing high interest rates and paying high amortization every month.

Who are eligible?

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First, let’s specify who are eligible to apply for the Pag-IBIG housing loan. According to Pag-IBIG, members who satisfy the following requirements may avail of the housing loan program:

  • Must have remitted 24 monthly contributions under Pag-IBIG I, Pag-IBIG II or Pag-IBIG Overseas Program (Members with less than the required number of contributions will be allowed to make a lump sum payment provided they have been contributing members of the Fund for at least 12 months);
  • Not more than 65 years old at the date of loan application and not more than 70 years old at loan maturity;
  • Has passed satisfactory checks (background, credit and employment) of the Pag-IBIG Fund;
  • Has no outstanding Pag-IBIG housing loan, either as a principal borrower or co-borrower;
  • Has no outstanding Pag-IBIG multi-purpose loan in arrears; and
  • Had no Pag-IBIG housing loan that was foreclosed, cancelled or bought back due to default or subjected to dacion en pago, which includes cases where the borrower is no longer interested to pursue the loan and surrenders the property.
  • What can you purchase with your borrowed money from Pag-IBIG?

    The Pag-IBIG Fund allows its members to borrow a maximum loanable amount of P6 million, with interest rates varying from 5.5% to 10%. The loanable amount depends on the member’s capacity to pay. If you want to know how much you can borrow based on your income and preferred repayment and fixing periods, you can check out Pag-IBIG’s housing loan affordability calculator.


    Now, the good thing about the Pag-IBIG housing loan is that can be used to finance not only your house and lot, townhouse or condominium purchase and construction but also even your home improvements.

    Pag-IBIG members who qualify for the housing loan may use the money to finance any of the following:

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  • Purchase of a fully developed residential lot or adjoining lots not exceeding 1,000 square meters;

  • Purchase of a residential house and lot, townhouse or condominium unit, inclusive of a parking space (may be old or brand new, a property mortgaged with the Pag-IBIG Fund or an acquired asset);
  • Construction or completion of a residential unit on a lot owned by the member;
  • Home improvement (any alteration in an existing residential unit intended to be a permanent integral part which will enhance the home’s durability and material value);
  • Refinancing of an existing mortgage with an institution acceptable to the Pag-IBIG Fund; and
  • Combination of loan purposes (limited to the following: purchase of a fully developed lot not exceeding 1,000 square meters and construction of a residential unit thereon; purchase of a residential unit, old or new, with home improvement; refinancing of an existing mortgage with home improvement; refinancing of an existing mortgage, specifically a lot loan, with construction of a residential unit thereon).
  • A complete step-by-step guide

    Now that we’ve finished discussing who are eligible to the loan and where you can use the borrowed money, here’s a complete step-by-step guide on how you can avail of the Pag-IBIG Housing Loan to finally purchase that dream home of yours.

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    1. Get a checklist of requirements.

    The checklist of requirements depends on the purpose of the loan. You may get your checklist online, or at the Servicing Department, 2nd floor, JELP Business Solutions Building, Shaw Boulevard, Mandaluyong City (for NCR account) or any provincial branch office (for provincial accounts).

    Basic requirements include:

  • Housing Loan Application (HLA) form, with recent ID photo of borrower and co-borrower (if applicable);
  • Proof of income;
  • 1 valid ID of principal borrower and spouse, co-Borrower and spouse;
  • Transfer Certificate of Title (certified true copy);
  • For condominium unit, Transfer Certificate of Title of the land and Condominium Certificate of Title (certified true copy);
  • Updated tax declaration (house and lot) and updated real estate tax receipt;
  • Contract-to-Sell or similar agreement between the buyer and seller; and
  • Vicinity map/sketch of the property.
  • Borrowers over 60 years old and members availing of P2-million to P6-million loans also need to submit a health statement form (medical questionnaire).

    2. Submit your HLA and other forms and pay the processing fee of P1,000.

    You may submit your HLA with complete requirements at the Pag-IBIG Fund’s main branch and provincial offices. You may also file your housing loan application online. Upon submission of all requirements, you also need to pay a non-refundable processing fee of P1,000.

    3. Wait for your Notice of Approval (NOA)/Letter of Guaranty (LOG) and sign your loan documents.

    The NOA will be released only to the borrower or, for OFW borrowers, to the attorney-in-fact. If an application is not approved, the borrower will receive a Notice of Disapproval instead. Upon receipt of your NOA, sign your loan documents and submit within 90 days.

    4. Submit all your NOA requirements to Pag-IBIG Fund for the release of your check.

    You have 90 calendar days to accomplish all your NOA requirements, which include going to the following:

  • Bureau of Internal Revenue for payment of capital gains tax and documentary stamps;
  • Local government unit for payment of transfer tax and transfer of tax declaration; and
  • Registry of Deeds for transfer of the title and annotation of mortgage.
  • 5. Receive your loan proceeds.

    To get your loan proceeds at the Pag-IBIG Fund, you need to bring at least 2 valid IDs and show the following documents:

  • Transfer Certificate of Title/Condominium Certificate of Title in the name of the borrower/co-borrower/s (if applicable) with mortgage annotation;
  • Updated tax declaration (house and lot) and tax real estate tax receipt in the name of the borrower/co-borrower/s (if applicable);
  • Deed of Absolute Sale with original stamp from the Registry of Deeds;
  • Occupancy permit (secured from LGU Engineering Office, if applicable); and
  • Assignment of loan proceeds.
  • If you will not be paying your loan through salary deduction, you also need to bring 12 postdated checks.

    6. Start your monthly amortization payments.

    You’ve already had an idea on how much your monthly amortization payment will be using Pag-IBIG’s housing loan affordability calculator earlier, right? So you should be ready to pay that amount promptly. You wouldn’t want to face the risk of having your housing loan cancelled or foreclosed.

    Have you experienced applying for the Pag-IBIG housing loan to purchase your dream home? Share with us your experience by leaving a comment below!

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    • Jose B. Flores

      Hi Miss Kathlyn Very helpful po pag-aaralan ko pa TY

    • Ahnjhela Tilam

      wala a qng post dated check,,pwede pobang cash ibayad s monthly amortization sa pag ibig

    • Kay Sie

      hi, thank you so much, napakalaking tulong ito, but my question ako, kasi ung property na gusto namin iavail is not available thru pag ibig, then we think if could loan money, then pay for the said amount of property, but ung title, hnd naman po ata nabibigay iyon ng seller. Tas iaallow ba iyon ng seller if ever?