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10 FAQs on Pag-IBIG Affordable Housing Program

Every Filipinos that decide to work abroad have their own reasons, on why they prefer to work on foreign lands — to fulfill their dreams. Dream to make more money in order to secure their family’s future and to provide basic necessities, such as good food, better education for their children and more importantly, a dream to own a house.

Yes, every Filipinos are dreaming to own a house, a house that someday they’ll call home. However life is not fair, and not everyone can fulfilled their dreams of owning a house in the nick-of-time, thanks to Pag-IBIG, a Philippine government owned and controlled corporation under the Housing and Urban Development Coordinating Council that offers its members a short-term loans and access to housing programs.

Also known as the Home Development Mutual Fund, Pag-IBIG is responsible for the administration of the national savings program and affordable shelter financing for Filipinos employed by local and foreign-based employers as well as voluntary and self-employed members. Below are frequently ask questions regarding Pag-IBIG’s affordable housing program;

1. What are the loan purposes?

The Pag-IBIG housing loan may be used to finance any one of the following:

  • 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;
  • Construction or completion of a residential unit on a lot owned by the member.

2. Who are eligible to apply for Affordable Housing Program?

The program may be availed of by members who satisfy the following requirements:

  • Must have remitted 24 monthly contributions under Pag-IBIG I Membership Program. New members may pay the 24 monthly membership contributions in lump sum, corresponding to the loan amount applied for;
  • Has a gross monthly income not exceeding PhP17,500.00 for those working in the NCR and PhP14,000.00 for workers in other regions;
  • Not more than 65 years old;
  • Has no outstanding Pag-IBIG housing loan;
  • Has no outstanding multi-purpose loan in arrears;
  • Had no Pag-IBIG housing loan that was foreclosed, cancelled, bought back due to default or subjected to Dacion en Pago.

3. How much can a member borrow?

  • A qualified Pag-IBIG member may borrow up to a maximum amount of PhP750,000.00, depending on the member’s actual need, his loan entitlement based on gross monthly income, his loan entitlement based on capacity to pay, and the loan-to-appraisal value ratio, whichever is the lowest.
  • A maximum of three (3) qualified Pag-IBIG members may be tacked into a single loan provided they are related within the second civil degree of consanguinity or affinity.

4. What is the loan to appraisal value ratio?

The loan to appraisal value ratio is:

Loan Amount                                        Loan-to-Appraisal Value Ratio Up  
Up to PhP450,000                                              100%
Over PhP450,000 to PhP750,000                       90%

5. What are the interest rates?

For the first ten years of the loan, interest rate for loans of up to PhP450,000 is 4.5% provided the gross monthly income is PhP15,000 for those working in the NCR and PhP12,000 for workers in other regions. For loans of up to PhP750,000, the interest rate is 6.5%, provided the gross monthly income for those working in the NCR is not more than PhP17,500, and not more than PhP14,000 for workers in other regions.

At the end of the ten-year period, the interest rate shall be re-priced based on the prevailing interest rate in the Fund’s pricing framework or it shall be increased by 2%, whichever is lower. Said interest rates shall be re-priced periodically depending on the chosen fixed pricing period of the borrower. The base rate for succeeding re-pricing shall be the interest rate for the immediately preceding re-pricing period.

6. How long is the repayment term?

The maximum repayment period for the loan is thirty (30) years.

7. Are there any charges collected?

The borrower shall pay a processing fee of PhP3,000: PhP1,000 is paid upon filing of the loan application and the remaining PhP2,000 will be paid upon loan takeout.

8. What are the requirements?

For the checklist of requirements, choose “Benefits and Programs” on the Pag-IBIG Fund website’s homepage, click “Housing Loan Program,” then click “Requirements” under “Housing Loan Availment.”

9. Where to file Housing Loan Application?

  • Housing loan application may be filed online at www.pagibigfund.gov.ph, by clicking “E-Services” on the PagIBIG Fund website’s homepage, then clicking “Housing Loan Application.”
  • Housing Loan applicants may also go to the Pag-IBIG NCR/Regional Branch that has territorial jurisdiction over over the property subject of the loan.

10.What is the Processing Time?

The regular processing time for a housing loan application is fifteen (15) working days, provided the borrower has submitted all the necessary requirements.

Contents last updated on July 28, 2014
Source: Pag-IBIG

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2 Thoughts to “10 FAQs on Pag-IBIG Affordable Housing Program”

  1. Nsa ibang bansa po ako gusto Kong mag rent to own sa pinas., ano pweding gawin

    1. Depende po kung condominium unit o house and lot.. pwede nyo po kontakin ang mga kilalang developer na tested na sa paggawa ng mga bahay o condo units.. 🙂

      Pwede rin po kayong magtanong sa inyong bangko, baka may mga assets sila na foreclose na…

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