Kamusta, kabayan!
Imagine finally having the keys to your very own home, a place where your children can grow up, where you can build memories that last a lifetime, and where you can find security amidst life's uncertainties.
For many Filipinos, owning a home feels like an impossible dream, especially with today's rising property prices. This is where Pag-IBIG's Housing Loan comes in. It's not just a financial product, but a pathway to turning your pangarap into reality.
Whether you're a young professional saving for your first condo, a growing family needing more space, or an OFW planning to invest your hard-earned money back home, this guide will walk you through everything you need to know about one of the most accessible home financing options available to Filipinos today.
Jump to:
- What is a Pag-IBIG Housing Loan?
- Why Choose Pag-IBIG Housing Loan?
- Pag-IBIG Housing Loan Qualifications
- Salary
- Pag-IBIG Housing Loan Requirements
- Amount You Can Borrow
- Interest Rates
- Applicable Loan Types
- Comparison with Bank Rates
- Monthly Payment Example
- Application Process
- Once Your Loan is Approved
- Pag-IBIG Housing Loan Guidelines
- FAQ
- Resources
What is a Pag-IBIG Housing Loan?
A Pag-IBIG Housing Loan is a government-backed home loan program offered by the Home Development Mutual Fund (HDMF), more commonly known as Pag-IBIG Fund. It helps Filipinos buy or build their own homes with affordable interest rates and flexible payment terms.
Why Choose Pag-IBIG Housing Loan?
- Minimal fees compared to other lenders
- Lower interest rates compared to most commercial banks
- Longer payment terms (up to 30 years)
- Higher loanable amount (up to ₱6 million)
- Flexible payment schemes to fit your budget
Pag-IBIG Housing Loan Qualifications
Planning to apply for a Pag-IBIG housing loan? Check if you meet these qualifications to increase your chances of loan approval. Different requirements apply depending on your employment status, but all applicants must meet the basic criteria.
Pag-IBIG Housing Loan Qualifications
| ✓ Pag-IBIG Membership | Must be an active Pag-IBIG member |
| ✓ Contributions | At least 24 monthly contributions |
| ✓ Age | Between 18-65 years old when applying |
| ✓ Income | Regular income sufficient to pay for the loan |
| 👔 Employment | Must have a stable job |
| 💼 Employer Compliance | Employer should be remitting your Pag-IBIG contributions |
| 💰 Income Proof | Must prove steady income |
| 📋 Contributions | Must be remitting your own Pag-IBIG contributions |
| 📑 Contract | Active employment contract required |
| 💸 Remittance | Should be sending money home regularly |
| 👤 Representative | Need to assign someone in the Philippines (via Special Power of Attorney) |
Salary
- You need to have enough income to afford the monthly payments
- The monthly payment should not be more than 40% of your monthly income Example:
- If your monthly income is ₱25,000
- Your maximum monthly loan payment should not exceed ₱10,000 (40% of ₱25,000)
- If you earn less, you can add a co-borrower (spouse, parent, sibling) to increase your borrowing power
Pag-IBIG Housing Loan Requirements
Getting your documents ready early can make your application faster. Here's what you need based on your employment status and loan purpose:
Pag-IBIG Loan Document Requirements
| Category | Required Documents |
|---|---|
Basic
Basic Documents(Everyone Needs These)
|
|
Income
For Employed Individuals |
|
Income
For Self-Employed Individuals |
|
Income
For OFWs |
|
Income
For Pensioners |
|
Property
For Buying a Ready House, Lot, or Condo |
|
Property
For Building a House |
|
Property
For Home Improvement |
|
Property
For Refinancing |
|
Tips About Documents:
- Make at least 2 photocopies of everything
- Organize them in the same order as the checklist
- Put them in a clear folder or envelope
- Don't submit original documents unless specifically required
- Have digital copies (scan or photo) on your phone as backup
- Get updated documents (most should be no more than 3 months old)
Amount You Can Borrow
The amount you can borrow depends on three main factors:
1. Your Ability to Pay
- Pag-IBIG checks your monthly income to see how much you can afford to pay
- Your monthly payment cannot be more than 40% of your net monthly income
- If you have other loans, these will also be considered
Example Calculation:
- Your monthly income: ₱30,000
- 40% of your income: ₱12,000
- This means your maximum monthly loan payment should not exceed ₱12,000
2. The Value of the Property
- Pag-IBIG will send an appraiser to check how much the property is worth
- You can borrow up to 80% of the property's appraised value
- You need to pay the remaining 20% as down payment
Example Calculation:
- Property selling price: ₱2,000,000
- Property appraised value: ₱1,900,000
- 80% of appraised value: ₱1,520,000 (maximum loan amount)
- Your down payment: ₱480,000 (remaining 20% of property value)
3. Loan Limits
As of 2025, Pag-IBIG has set these maximum loan amounts:
- Regular Housing Loan: Up to ₱6,000,000
- Affordable Housing Loan: Up to ₱750,000 (for properties worth ₱750,000 or less)
Interest Rates
Pag-IBIG Fund offers some of the most competitive housing loan interest rates in the market. The rates vary based on your loan term (how long you'll be paying) and the fixing period (how long the interest rate stays the same before it can change).
Pag-IBIG Housing Loan Interest Rates
| Repricing Period | Interest Rate | Available Loan Terms | Best For |
|---|---|---|---|
| 3 Years | 6.25% | Up to 30 years | Balance of lower rates and medium-term stability |
| 5 Years | 6.5% | Up to 30 years | Those who want stability for a longer period |
| 10 Years | 7.125% | Up to 30 years | Those who prioritize long-term predictability in payments |
| 15 Years | 7.75% | 15, 20, 25, or 30 years | Those who want very long-term stability |
| 20 Years | 8.50% | 20, 25, or 30 years | Those who want to lock in rates for most of their loan term |
| 25 Years | 9.125% | 25 or 30 years | Those who want almost complete rate certainty |
| 30 Years | 9.75% | 30 years only | Those who want complete payment predictability throughout the loan |
Applicable Loan Types
- Purchase of residential house and lot, townhouse, or condominium unit
- Construction or completion of a residential unit on a lot owned by the borrower
- Home improvement of an existing residential property
- Refinancing of an existing housing loan
- Purchase of a residential lot within a subdivision
Comparison with Bank Rates
| Lender | 3-Year Fixed | 5-Year Fixed |
|---|---|---|
| Pag-IBIG | 6.25% | 6.50% |
| Typical Bank A | 6.75% | 7.25% |
| Typical Bank B | 6.50% | 7.00% |
| Typical Bank C | 6.90% | 7.50% |
Monthly Payment Example
| Loan Amount | Term | Interest | Monthly |
|---|---|---|---|
| ₱500,000 | 15 years | 7.75% | ₱4,682 |
| ₱1,000,000 | 15 years | 7.75% | ₱9,364 |
| ₱2,000,000 | 20 years | 8.50% | ₱17,241 |
| ₱3,000,000 | 30 years | 9.75% | ₱25,714 |
Application Process
Follow this comprehensive guide to navigate through the Pag-IBIG housing loan application process from preparation to approval and release.
Pag-IBIG Housing Loan Application Process
Before You Start
- Check your eligibility using the information in Section 2
- Calculate how much you can borrow using the guidelines in Section 4
- Decide on the property you want to buy, build, or improve
- Save money for the down payment (at least 20% of the property value)
- Prepare all required documents listed in Section 8
Pre-Application
- Visit the nearest Pag-IBIG office or the Virtual Pag-IBIG website
- Ask for a Housing Loan Application Form
- Verify that you have at least 24 monthly Pag-IBIG contributions
- If not, pay the required lump sum to reach 24 contributions
Fill Out the Application Form
- Complete all fields in the application form
- Make sure your contact information is correct
- Include your co-borrower's information if applicable
- Sign the form in all required places
Submit Your Application and Documents
- Go to any Pag-IBIG branch on a weekday (bring valid ID)
- Submit your application form and all required documents
- Pay the processing fee
- ₱1,000 for loans up to ₱1 million
- ₱2,000 for loans over ₱1 million
- Get a reference number and receipt
- Ask when you should follow up (usually after 3-5 business days)
Wait for the Initial Evaluation
- Pag-IBIG will check your documents and contribution records
- They will verify your employment and income
- They will perform a background check
- If anything is missing, they will contact you to submit additional documents
Property Appraisal
- Pag-IBIG will schedule a property appraisal (inspection)
- An appraiser will visit the property to assess its value
- They will take photos and measurements
- They will check the condition and location of the property
- Make sure someone is available to let the appraiser in
Credit Evaluation
- Pag-IBIG will evaluate your capacity to pay the loan
- They will check your credit history
- They will calculate how much you can borrow based on your income
- This typically takes 7-14 days
Loan Approval
- If approved, you'll receive a Notice of Approval (NOA)
- The NOA will show the approved loan amount and terms
- Review the terms carefully
- If you agree, sign the NOA and return it to Pag-IBIG
Loan Documentation
- After accepting the NOA, you'll be asked to sign:
- Loan documents
- Promissory note
- Deed of mortgage
- Insurance forms
- Pay for notarization and registration fees
Loan Release
- For house purchase: The loan will be released to the seller/developer
- For construction: The loan may be released in stages
- Released in stages (40%, 30%, 30%)
- For home improvement: Usually released in one lump sum
- The release usually takes 7-14 days after document signing
Start Paying Your Monthly Amortization
- Your first payment is due one month after loan release
- Set up your preferred payment method
- Always keep payment receipts
- Pay on time to avoid penalties
Typical Timeline
Once Your Loan is Approved
- Review your Notice of Approval (NOA) carefully
- Check the approved loan amount
- Verify the interest rate and terms
- Note any special conditions
- Sign all required documents
- Loan agreement
- Promissory note
- Deed of mortgage
- Post-dated checks (if required)
- Pay the required fees
- Documentary stamp tax
- Registration fee
- Notarial fee
- Handling fee
- Insurance premium
- Understand the loan release process
- For home purchase: Payment goes to seller/developer
- For construction: Released in stages based on progress
- For home improvement: Usually one-time release
After Loan Release:
- Keep all loan documents safely
- NOA and loan agreement
- Mortgage deed
- Insurance policies
- Receipts and proof of payment
- Know when your first payment is due
- Usually one month after loan release
- Mark your calendar or set a phone reminder
- Set up a convenient payment method
- Auto-debit from your bank account
- Mobile banking/app payments
- Payment centers
- Post-dated checks
- Monitor your loan status
- Track your payments and balance
- Check for any discrepancies
- Keep all payment receipts
For Different Loan Purposes:
If Buying a Ready Property:
- Attend the property turnover
- Inspect the property thoroughly
- Document any issues and report to the developer
- Keep all turnover documents
If Building a House:
- Follow the approved construction plan
- Keep receipts for all materials and labor
- Document the progress with photos
- Be ready for Pag-IBIG inspections before each release
If Doing Home Improvements:
- Stick to the approved renovation plan
- Keep receipts for all materials and labor
- Take before and after photos
- Be ready for Pag-IBIG inspection
Pag-IBIG Housing Loan Guidelines
Follow these practical guidelines to ensure a smooth housing loan experience, from application through the entire loan term. These tips will help you avoid common pitfalls and make the most of your Pag-IBIG housing loan.
Pag-IBIG Housing Loan Guidelines
| # | Guideline | Details |
|---|---|---|
|
1
|
Always keep copies of everything |
|
|
2
|
Know your loan details by heart |
|
|
3
|
Set calendar reminders |
|
|
4
|
Monitor your loan regularly |
|
|
5
|
Consider future financial changes |
|
| # | Guideline | Details |
|---|---|---|
|
1
|
Don't borrow the maximum amount if you don't need it |
|
|
2
|
Have an emergency fund before applying |
|
|
3
|
Pay more when you can |
|
|
4
|
Compare with other housing loan options |
|
|
5
|
Consider the total cost, not just monthly payments |
|
| # | Guideline | Details |
|---|---|---|
|
1
|
Inspect thoroughly before buying |
|
|
2
|
Verify all property documents |
|
|
3
|
Choose properties with good resale value |
|
|
4
|
Don't rush your decision |
|
|
5
|
Get everything in writing |
|
FAQ
Yes, but your previous Pag-IBIG housing loan must be fully paid. You can check your status at any Pag-IBIG branch or through Virtual Pag-IBIG.
Yes, as long as you're not more than 65 years old at the time of application and the loan will be fully paid by the time you reach 70. In your case, you could apply for a maximum of 5 years.
Yes, Pag-IBIG can consider both your employment income and business income. You'll need to provide documentation for both income sources such as ITR, financial statements, and business permits.
You can submit a Certificate of Employment and Compensation (CEC) with your latest three months' pay slips. For newly employed individuals, Pag-IBIG may require additional documents like an employment contract.
Yes, you can apply as co-borrowers. Your combined income will be considered when calculating your loan capacity, which can increase your maximum loanable amount.
Yes, but the transaction will be closely scrutinized. You'll need to provide additional documentation and the property will undergo thorough appraisal to ensure the transaction is legitimate and at fair market value.
You'll need to pay the difference as a larger down payment. For example, if the property costs ₱8 million and the maximum loan is ₱6 million, you'll need to pay the ₱2 million difference plus the required down payment on the ₱6 million.
Yes, you can use a Pag-IBIG housing loan to purchase foreclosed properties, including those owned by Pag-IBIG itself. Sometimes, special terms are offered for Pag-IBIG foreclosed properties.
Yes, you can apply for a loan for pre-selling properties from accredited developers. The loan release may be scheduled according to the construction progress.
Yes, you can apply for a lot purchase loan first and then apply for a home construction loan later. However, you'll need to complete the lot loan or include it in a refinancing arrangement when applying for the construction loan.
You'll be charged a penalty of 1/20 of 1% of the amount due for each day of delay. If you miss several payments, Pag-IBIG will send notices, and continued non-payment could lead to foreclosure. Contact Pag-IBIG immediately if you're having payment difficulties.
Yes, you can pay your loan in full at any time without pre-payment penalties. This can save you a significant amount on interest payments.
Yes, you can make advance or additional payments. These will be applied to your principal balance, reducing your overall interest payments and potentially shortening your loan term.
Contact Pag-IBIG immediately to discuss options such as loan restructuring or the Financial Hardship Program. Don't wait until you've missed several payments.
There's typically no grace period. Payments are due on the specified date each month, and penalties begin accruing immediately after the due date.
Pag-IBIG has special services for OFWs. You can start your application at Philippine Overseas Labor Offices (POLO) or during Pag-IBIG overseas outreach events. You'll still need to designate a representative with a Special Power of Attorney for certain steps.
Yes, informal sector workers can apply by showing proof of income through various means such as bank statements, receipts, contracts, or certifications from barangay officials or clients.
You have several options: 1) Pay the loan in full from the sale proceeds, 2) Transfer the loan to the new buyer if they qualify, or 3) In special cases, transfer the loan to another property you're purchasing (loan portability).
Yes, two types of insurance are required: Mortgage Redemption Insurance (MRI) and Fire Insurance. These are typically included in your monthly amortization.
Pag-IBIG can accept properties with Contracts to Sell or similar documents from accredited developers. The developer must provide additional documentation proving their ownership and right to sell.
Resources
Find all the essential resources you need for your Pag-IBIG housing loan journey, from official contacts to helpful tools and services.
Pag-IBIG Housing Loan Resources
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Hotline:
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Toll-Free:1-800-10-724-4244
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Website:
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Social Media:
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Virtual Pag-IBIG:
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Check contribution status
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Download forms
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Schedule appointments
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Update member information
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Apply for membership (for first-time members)
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Bayad Centers
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SM Business Centers
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Robinsons Department Stores
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ECPay outlets
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7-Eleven stores (CLiQQ kiosks)
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Most major banks
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GCash, Maya, and other e-wallets
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Get on-the-spot housing loan evaluation
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View foreclosed properties
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Meet with accredited developers
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Receive guidance from Pag-IBIG housing specialists
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Operating hours
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Contact numbers
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Services offered
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Maps and directions
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DHSUD(Department of Human Settlements and Urban Development) dhsud.gov.ph
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Land Registration Authority
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Bureau of Internal Revenue
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Real Estate Brokers Association of the Philippines
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Public Attorney's Office
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Integrated Bar of the Philippines
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Legal aid NGOsin your area
This guide is updated as of March 2025. Pag-IBIG Fund policies, interest rates, and requirements may change. Always verify the latest information from official Pag-IBIG Fund sources.
Disclaimer: This guide is for informational purposes only and does not constitute financial or legal advice. Readers should consult with Pag-IBIG Fund or qualified professionals for advice specific to their situation.
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