Pag-IBIG Housing Loan: The Complete Guide

Introducing your ultimate guide to Pag-IBIG Housing Loans in the Philippines, your key to unlocking your dream home! Whether you’re a first-time buyer or a seasoned investor, this resource will simplify your property purchase journey. Uncover the wonders of the Pag-IBIG Housing Loan Calculator, your secret weapon for mapping out your dream home’s financing. This tool offers a clear view of repayment schedules, interest rates, and loanable amounts. Curious? Keep reading to discover why a Pag-IBIG Housing Loan could be your ticket to a brighter future. Experience the power of homeownership and how Pag-IBIG can turn your dreams into reality.

Over the past few years, this program has grown significantly, becoming a cornerstone in realizing homeownership dreams for many Filipinos. In 2018 alone, over PHP 75.31 billion worth of loans were granted, assisting 90,375 members in acquiring their dream homes. The following year, in 2019, the total amount of loans increased to an astonishing PHP 86.74 billion, aiding 95,276 members. Despite the pandemic in 2020, Pag-IBIG managed to lend around PHP 81.37 billion, supporting 92,828 members. The undeterred commitment of Pag-IBIG to serving its members even in challenging times shows how pivotal it is in the home loan market in the Philippines. This trend illustrates not only the effectiveness of this program but also the resilience and aspiration of the Filipino people.

What Is Pag Ibig Housing Loan

It is a financing program offered by the Home Development Mutual Fund (HDMF) or more commonly known as Pag-IBIG, in the Philippines. This government-initiated housing loan program aims to provide Filipinos with an affordable and accessible means to own their dream homes.

Who Can Apply for Pag ibig Housing Loan?

It is designed to help Filipinos achieve their dream of owning a home. To be eligible, there are several critical criteria that applicants must meet:

Age and Employment

Applicants should be at least 18 years old at the time of loan application and not over 65. Furthermore, they need to be insurable and a regular employee, providing a stable source of income.

Membership

The applicant must be an active member of the Pag-IBIG fund. The membership requirements include making at least 24 monthly contributions. You must pay the remaining months if you have paid less than two years.

Income Documents

Applicants must present documents such as a notarized Certificate of Employment and Compensation, the Latest Income Tax Return (ITR), and recent payslips to verify their income.

Existing Loans

Even members with existing housing loans can apply for an additional housing loan for specific purposes like lot purchases.

Monthly Income

The gross monthly income should be at most 17,500.00 if working within the NCR Regions and 14,000.00 for those working in other regions.

How to Use Pag ibig Housing Loan Calculator

When mapping out the financials for your dream home purchase, use the tools available such as Pag-IBIG housing Loan Calculator. This online calculator gives prospects a clearer view of their repayment plans, interest rates, and loanable amounts.

Step 1: Visit the Pag ibig Housing Loan Calculator

Access the Pag-IBIG Housing Loan Calculator through Pag-IBIG’s website or mobile app.

Step 2: Select What you want to compute

Select what you want to compte.

How much income is required for your desired loan value?
How much can you borrow based on your income?
How much can you borrow based on the value of the property?

Step 3: Enter the Desired Amount, Gross Monthly Income, or Value of the Property

Enter the desired loan amount, gross monthly income, or property value depending on your selection in Step 2.

Step 4: Select Repayment Period

Next, select the preferred repayment period from 1 year up to 30 years.

Step 4: Select Preferred Fixed Pricing Period

Select the preferred fixed pricing period. It will fix your interest rate for a specific period before breaking it down into staggered intervals with adjustments every two years according to prevailing rates. A fixed pricing period is how long you want to lock in your chosen rate.

Step 5: Compute

Click on the ‘Compute’ button to receive the Loanable Amount, Interest Rate, Monthly Amortization, and Total Payment.

What Are The Requirements for Pag-IBIG Housing Loan Application?

The requirements to apply for a loan are simple but are necessary to ensure that all legal and regulatory obligations are met. Here is a list of the most common requirements for housing loan pag ibig applications:

Fully accomplished Application Form (Housing Loan)
Latest Income Tax Return (ITR) or Certified True Copy of Form 2316
Certificate of Employment and Compensation
Proof of Billing Address

How To Apppy Pag ibig Housing Loan

Once you’ve met the housing loan pag ibig application requirements, you can start applying for a loan by following these simple steps:

Step 1: Visit the nearest Pag-IBIG branch

Visit your nearest Pag-IBIG branch and submit all the required documents. Experienced staff will assist you in filling out the application form and provide you with the requirements checklist.

Housing loan application form
Proof of income
Valid ID’s
Others like the vicinity map of the property, updated tax declaration and tax receipt, and certified true copy of the title.

Step 2: Check Your Loan Status

After submitting your documents, wait for the approval or rejection of your housing loan pag ibig application. You can check your loan status by accessing the MyPag-IBIG mobile app or logging in to pagibigfund.gov.ph.

Step 3: Get a Notice of Approval (NOA) and the Letter of Guaranty (LOG)

You will receive the Notice of Approval (NOA) and Letter of Guaranty (LOG) when your loan application is approved. The NOA states the terms and conditions of your housing loan, while the LOG guarantees all payments made to Pag-IBIG. You can receive these documents within 17 working days. You can claim these documents at the Servicing Department.

Step 4: Submit the Notice of Approval (NOA) Requirements

You should present the NOA and other requirements to your chosen accredited real estate developer or home seller/lessor.

Updated tax declaration and tax receipt under your name.
The Transfer certificate of the title is under your name.
If necessary, loan mortgage documents.

Step 5: Receive Home Loan Release Letter and Pay Initial Equity

After submitting all the required documents, you will get your loan release letter which contains the details on how to pay your initial equity. Once your initial equity is paid, you can proceed to the next step.

Step 6: Receive Home Loan Release and Start Paying Your Loan

After completing all the above steps, you will receive your loan release letter, which contains the details regarding your amortization payments. You can start paying your housing loan monthly, depending on your chosen payment term.

How to Pay the Pag ibig Housing Loan

Paying your loan is a crucial part of the process, and thankfully, there are several convenient ways you can do this in the Philippines:

Over-the-counter in Pag-IBIG branch: You can pay directly at any Pag-IBIG branch. Just present your Pag-IBIG Housing Loan billing statement when you make a payment.
Banks: Certain banks accept Pag-IBIG Housing Loan payments. These include BDO, Metrobank, BPI, Landbank, and others. Make sure to check if your local branch agrees with these payments.
Payment Centers: You can also pay at authorized payment centers such as SM Business Centers, Bayad Center, and M. Lhuillier.
Online Payment: For your convenience, Pag-IBIG also allows online payment through the Pag-IBIG Fund Online Payment Facility. You can also use GCash, PayMaya, and other mobile wallets.
Salary Deduction: If your employer is cooperative, you can arrange for your Housing Loan payments to be automatically deducted from your salary.

Frequently Asked Questions (FAQs)

Question: Who can apply for a Pag-IBIG housing loan?

Answer: Any member who has made at least twenty-four (24) monthly contributions can apply for a housing loan. The applicant must be under 65 years old at the time of loan application and at most 70 years old at the time of loan maturity.

Question: Can I use the Pag-IBIG Housing Loan to purchase a lot-only property?

Answer: Yes, it can finance the purchase of a residential lot or adjoining lots not exceeding one thousand (1,000) square meters.

Question: Can I use the Pag-IBIG Housing Loan for home improvement?

Answer: You can utilize this loan for home improvements or renovations. It is part of the fund’s multi-purpose loan program.

Question: Where are Pag-IBIG Fund offices located?

Answer: Pag-IBIG Fund offices are located across the Philippines and even abroad to cater to overseas workers. You can find the nearest office through the Pag-IBIG Fund’s official website.

Question: How much monthly income do I need to be approved?

Answer: Your monthly income will be evaluated based on your capacity to pay. Pag-IBIG ensures that your monthly repayment will not exceed 35% of your gross monthly income.

Question: What are the benefits of being a Pag-IBIG Fund member?

Answer: Apart from the housing loan, members can avail of short-term loans, save with higher dividends, and enjoy death benefits.

Conclusion

Getting a Pag-IBIG Housing Loan is an easy and convenient way to own your home. As long as you meet its requirements, you can use the loan for various housing needs, like purchasing a residential lot or improving your existing home. So start planning and explore how much you can borrow using the Pag-IBIG housing loan calculator.