Pag Ibig Housing Loan Philippines | Everything You should know before Applying for Loan

Pag-IBIG (Pagtutulungan sa Kinabukasan: Ikaw, Bangko, Industriya at Gobyerno) is a government agency in the Philippines that provides affordable housing loans to its members. If you’re a Pag-IBIG member, you can apply for a housing loan to purchase a residential property or to finance the construction, renovation, or improvement of a house or lot.

Here are the basic requirements and steps to apply for a Pag-IBIG Housing Loan in the Philippines:

1. Be a member of Pag-IBIG for at least 24 months and has made at least 24 monthly contributions.
2. Have a stable source of income (employed, self-employed or OFW).
3. No outstanding Pag-IBIG loan or any past due Pag-IBIG housing loan account.
4. Complete the Pag-IBIG Housing Loan Application form and submit the required documents.
5. Attend the loan counseling and sign the loan documents once approved.

The required documents may vary depending on your employment status and the type of loan you’re applying for, but typically, the following are needed:

1. For employed members:

• Certificate of Employment and Compensation
• Latest Income Tax Return (ITR) or BIR Form 2316
• One (1) month payslip
• Company ID and/or government-issued ID

2. For self-employed members:

• Latest Audited Financial Statement or latest ITR with Financial Statement
• Business permit and/or DTI registration
• Mayor’s Permit

3. For OFW members:

• Employment contract
• Certificate of Employment with compensation
• Proof of remittance for the last 6 months

Once your loan application is approved, you will be required to pay the following fees:

• Processing fee
• Appraisal fee
• Mortgage Redemption Insurance (MRI)

The maximum loanable amount depends on your membership savings and your capacity to pay, but it ranges from Php 400,000 to Php 6,000,000.

The loan term can be up to 30 years, and the interest rate is fixed for the first 1 to 3 years, depending on the loan term. After the fixed-rate period, the interest rate will be repriced annually based on prevailing market rates.

For more information, you can visit the Pag-IBIG Fund website or visit their branches nationwide.

Housing Loan Calculator:

Pag-IBIG Fund provides an online Housing Loan Affordability Calculator on their website that can help you estimate the monthly amortization, loan amount, and interest rate based on your preferred loan program, loan amount, payment term, and other factors.

To use the Pag-IBIG Housing Loan Calculator, follow these steps:

1. Go to the Pag-IBIG Fund website and click on the “E-Services” tab.
2. Click on the “Housing Loan Affordability Calculator” link.
3. Fill out the necessary information, such as your desired loan amount, preferred payment term, and interest rate. You can also input additional details such as your monthly income, preferred location, and type of property.
4. Click on the “Calculate” button to generate the estimated monthly amortization, loan amount, and interest rate.

Note that the results provided by the Pag-IBIG Housing Loan Calculator are for estimation purposes only and are not a guarantee of the actual loan amount, interest rate, or monthly amortization. It’s recommended to consult with a Pag-IBIG representative or visit their branches for more accurate and detailed information regarding their loan programs and requirements.

How can I qualify for PAG IBIG housing loan?

To qualify for a PAG-IBIG Housing Loan, you must meet the following requirements:

1. Be an active Pag-IBIG Fund member for at least 24 months and has made at least 24 monthly contributions. If you’re not yet a member, you need to register and make contributions for at least 24 months before you can apply for a housing loan.
2. Have the legal capacity to acquire and encumber real property.
3. Have no outstanding Pag-IBIG loans, foreclosures, or cancellations of housing loans.
4. Have the financial capacity to pay for the loan, with a stable source of income. This can be verified by submitting proof of income, such as employment certificate, pay slips, and income tax returns.
5. Have a good credit standing, with no negative records or pending criminal cases.
6. Have attended the Pag-IBIG Fund’s Loan Counselling Session (LCS). The LCS is a mandatory seminar that educates potential borrowers about the loan process, loan terms, and responsibilities as a borrower.

Once you meet these requirements, you can apply for a Pag-IBIG housing loan by completing the application form and submitting the required documents. The documents may vary depending on your employment status and the type of loan you’re applying for, but typically include proof of income, identification documents, and property-related documents.

It’s important to note that the loan amount and terms will depend on several factors, including your income, loan purpose, loan amount, and payment capacity. You can check the Pag-IBIG Fund website or visit a Pag-IBIG office for more information on loan requirements and eligibility.

How much is the down payment for Pag Ibig housing loan?

The down payment for a Pag-IBIG Housing Loan depends on the selling price or appraised value of the property, as well as the loan amount and the type of loan you are availing. Generally, the minimum down payment for a Pag-IBIG Housing Loan is 10% of the selling price or appraised value of the property, whichever is lower.

However, some loan programs offer lower down payment requirements, such as the Affordable Housing Program, which offers a 5% down payment for properties with a selling price of Php 450,000 and below, and a 10% down payment for properties with a selling price of up to Php 750,000.

It’s important to note that the loan amount is based on the selling price or appraised value of the property, minus the down payment. The maximum loan amount that can be availed varies depending on several factors, including the borrower’s income, age, and capacity to pay.

It’s recommended to consult with a Pag-IBIG representative or use their loan calculator to get an estimate of the down payment and monthly amortization based on your preferred loan program and property.

Pag ibig housing loan Interest Rate

The interest rate for Pag-IBIG Housing Loan varies depending on the loan program, the loan amount, and the payment term. Currently, the Pag-IBIG Housing Loan interest rate ranges from 3% to 8.5% per annum, which is based on the following:

1. Loan-to-Appraised Value Ratio (LTV) – the percentage of the loan amount to the appraised value of the property.
2. Loan term – the number of years that the borrower is required to repay the loan.
3. Repricing period – the period when the interest rate is reviewed and adjusted based on the prevailing market rates.
4. Type of loan program – Pag-IBIG offers several loan programs with different interest rates, such as the End-User Financing Program, Affordable Housing Program, and the Condo/Residential Lot Loan Program.

For example, as of September 2021, the End-User Financing Program offers a fixed interest rate of 4.985% per annum for the first 1-3 years, while the Affordable Housing Program offers a fixed interest rate of 3% per annum for the first 3 years.

It’s important to note that the interest rate is subject to change based on the prevailing market rates and Pag-IBIG’s policies. You can check the Pag-IBIG Fund website or visit their branches for the latest interest rates and loan programs.

Gino Hawkins