Housing is one of the most basic needs of life. Owning a house or a property that we can call a home is a dream for every Filipino as it ensures a shelter for the family and also secures the future in case of an unforeseen event. In our expedition to fulfill the housing requirements, we tend to chalk out a judicious plan, save for years to cover the costs involved in procuring a property. Owing to the ever increasing prices in the real estate, funding the costs of the project solely on the basis of personal finances is not so easy.
In such cases, a housing loan comes handly. It provides the required financial stimulus upfront and lets you pay back in monthly installments along with applicable interest charges. Along with the offerings from the private sector, the most popular housing loan apparatus for Filipinos since decades has been the Pag-IBIG Housing Loan. Administered as Home Development Mutual Fund (HDMF), this instrument has been the most trusted funding source in the public space for procuring a property.
You’re probably eligible for an Pag-IBIG Housing Loan if you are
At least 21 years old
Less than 65 years old
Salaried / Self-employed
with regular income
Earn more than the minimum
Your Pag-IBIG Housing Loan amount eligibility is based on these factors
EMI limited to about 35%
of monthly income
EMIs of other loans lower
Increase your eligible Pag-IBIG Housing Loan amount by these steps
Make your spouse a co-applicant,
and her income will add
to your eligibility
Choose longer tenure loan up to 25 years
Alternatively add your parents
About HDMF(Pag-IBIG Housing Loan)
Philippines was one of foremost countries in Asia to realize the need for a state aided fund that answers the housing needs of its citizens. The Home Development Mutual Fund was born out of a deliberation by the government to answer the demand for a consolidated national savings scheme and accessible home financing for working Filipinos. The HDMF was established in 1978 with the pro-social security system handling the funds of privately employed citizens while investments of government workers being managed by the Government Service Insurance System. With a view to consolidate and streamline this mammoth scheme, all duties relating to administration of the fund was transferred to the Home Mortgage Finance Corporation under the aegis of erstwhile, Ministry of Human Settlements.
In 1979, the two funds for private and government workers were merged to give rise to what is now commonly known as Pag-IBIG Fund(Pagtutulungan sa Kinabukasan: Ikaw, Bangko, Industriya at Gobyerno). Today, the fund manages accounts of millions of members that includes private and government employees, self-employed individuals, Filipinos working in foreign companies and all other types of workers with a stable income. This public fund has been providing affordable housing finance solutions ever since its inception and has fulfilled the dreams of millions of Filipinos in procuring a housing property of their choice.
Types of Loans Offered by Pag-IBIG Housing Loan
With an objective of providing solutions to financial needs of different type of aspirants, two types of loan programmes are offered under this scheme. Key differentiating factors are the quantum of loan, interest rate and other specifics depending on the requirements of the applicant. The two types of offers under the Pag-IBIG Housing Loan have been explained below.
Affordable Housing Program
- This is a populist loan option available for minimum wage earners with a maximum monthly income of P17,500.
- The maximum loan amount provided under this scheme is P750,000.
- The rate of interest is either 4.5% or 6.5% for the first 10 years into the loan depending on the gross monthly income of the applicant.
End-User Financing Program
This loan scheme is applicable to those who wish to avail a loan amount of up to P6 million. The rate of interest depends on loan tenor chosen by the borrower and starts at 6.50% for a term of 3 years and stretches up to 10.00% for a term of 30 years. The interest rate remains fixed throughout the repayment term.
Types of Real Estate Projects Covered by Pag-IBIG Housing Loan
The housing loan program covers a wide range of properties as listed below. Opportunities are provided to either one or combination of the listed property types.
- For purchase of a residential area and lot, condominium unit or a townhouse. Both new and old properties are covered.
- Towards procurement of a fully developed lot in a residential locality that does not exceed 1,000 square meters.
- Towards construction or completion of a house or lot by the member. All associated costs are covered.
- Costs relating to home improvement such as making alterations in an existing residential unit to enhance the value of the property.
- Existing Mortgage Refinancing by an institution/bank listed under the fund administration.
- In addition to the above, the loan also covers combinations of housing activities such as purchase of a lot(not more than 1,000 square meters) and for construction of a residential unit. Purchasing a new/old residential unit and home improvement and refinancing of an existing mortgage for lot for construction of a residential unit.
Pag-IBIG Housing Loan Interest Rates
Since this is a popular loan scheme in the public space, the interest rates are highly affordable starting at just 6.500 percent. The table below provides details of specific interest rates based on the loan term. This interest rates provided below is only applicable to the End-User Financing Program.
|Housing Loan Tenor||Rate of Interest|
The rates are subject to periodic revision. Do check on the official website for latest rates.
Pag-IBIG Housing Loan Eligibility
Since this is a housing loan provided in the public scheme, the eligibility criteria is determined on the basis of your membership status, age and income and of course, your financial capacity to avail the required loan amount. The following points will give you an idea of loan eligibility.
- The applicant should not be older than 65 years at the time of loan application and should not have crossed 70 years at the time of loan maturity.
- The loan aspirant should be a member of the fund for at least 2 years and must have contributed for a min. of 24 months. Principal borrowers are required to fulfill this condition.
- Up to three members of the Pag-IBIG can apply for a loan under the same application, provided they are related to each other.
- The monthly amortization should not exceed 40 percent of the net disposable income. Therefore, it's advised that you look at clearing existing loan commitments to make space for them to determine your eligibility.
- Existing Pag-IBIG Housing Loan customers who are aspiring to apply for a another loan should ensure existing loans are fully paid off before applying.
- Customers who’ve availed a Multi-Purpose loan under this fund should ensure that there are no arrears and the account is up to date with no instances of defaulting.
How to Apply for Pag-IBIG Housing Loan
There are two channels of applying for the Pag-IBIG housing loan for in the Philippines.
- Assistance by the developer in fulfilling the housing loan application.
- The member applies for a loan directly with the fund administration.
While details of the former is provided by the developer, members who wish to apply directly to the fund can refer to the process below.
- One can attend routinely held loan counselling sessions conducted at periodic intervals and fill the relevant questionnaire, Loan Application & Membership Status Verification Slip. Based on the primary documents submitted, they will determine your eligibility and provide a Checklist of Requirements.
- The next step in this process will be to submit the HLA(Housing Loan Application) and fulfill the requirements in terms of the paperwork. A Processing Fee of PhP1,000 has to be remitted at this stage(Non-Refundable).
- Post processing and approval, documents listed in the section below have to be submitted to secure the loan amount.
Pag-IBIG Housing Loan Requirements
Depending on the “Source of Income” and “Employment” of the applicant, the documentation varies. Refer to the table after the common section below to understand the nature of requirements.
- Housing Loan Application along with recent IDs with photo of the borrower.
- MSVS(Membership Status Verification Slip).
- Authorization in the required format to conduct Background Verification.
- For applicants falling in the OFW category, SPA(Special Power of Attorney) notarized prior to departure/authenticated by the Philippine Embassy or Consulate in the country of residence.
- Health Statement Forms in the required format and Medical Examination for borrowers over the age of 60.
- Marriage Certificate for all married borrowers who have included their spouse to compute aggregate income.
- Birth Certificate and/or proof of relationship if family members have been included for computation of aggregate income.
Income related documents have been explained in the table below.
|Locally Employed & Salaried||
|Self Employed Applicants||
Any other related documents that will be communicated on a case to case basis.
|Overseas Filipino Workers||
Frequently Asked Questions
- I have just started my investment with the Pag-IBIG Fund and have contributed for 4 months. Can I pay the rest of the balance months at one go and be eligible for a housing loan offered under this scheme?
- My current income does not qualify for a loan under Pag-IBIG Housing Loan scheme. What are my options?
- Can I apply for more housing loan more than once under this offer?
- My application for a housing loan was rejected due to lack of proper documentation. Can I apply again?
- Please provide the phone number for Pag-IBIG Housing Loan. I have some questions.
You will have to continue investing for two years before being considered eligible for a housing loan. One has to be active for at least 24 months to qualify.
If the income is deemed insufficient, you can introduce a relative(within the second civil degree of consanguinity) or spouse whose income can be considered to enhance the overall income. They may have to sign up as a co-borrower or provide collateral.
You will only be able to apply for and avail one housing loan at a time. If you would like to apply for another loan, the existing one has to be paid off in full with clear titles.
Yes, you can apply at a later time when you have all the documents in place. Details of time break will be available on the web portal of Pag-IBIG Fund. This information can also be obtained by calling the customer service department or by visiting the nearest office.
You can reach the representatives on 724-4244. A list of of offices and departments can be accessed on the web portal pagibigfund.gov.ph along with address and contact details.
News about Pag-IBIG Housing Loan
P9B hit by Home Development Mutual Fund
Pag-IBIG or Home Development Mutual Fund stated that the collections for housing loan was in first quarter of the current year went up by 5% from last year. The intensified efforts of collection made it rise to P9 billion.
The figure for the first quarter has higher by 20% than the first quarter average collections recorded between 2011 and 2015. From recovery of assets, P1.8 billion has been collected. However, it has been excluded from the amount of loan collections. First quarter of this year also witnessed Pag-IBIG’s partnership with several agencies with resulted in generating funds of P822.4 million.
21st July 2016
The Home Development Mutual Fund drops basis points by 100 to 5.5%
The Home Development Mutual Fund also known as Pag-IBIG has recently dropped basis points by 100 on home loan rates to 5.5% per year as reported by the company.
July 1, 2016 onwards borrowers of home loans of up to Php6 million can choose for a 5.5% interest rate p.a. for the 1st year of their loan tenure. This interest is the record low rate for the company and is part of their EUF Program (End-User Financing). The previous rates offered by the company was 6.6% for a minimum fixed period of 3 years for an EUF.
Borrowers who wish to opt for the 5.5% interest rate p.a. should not have monthly amortization exceeding 30% of their gross monthly income. Also the borrower’s loan amount to the collateral (appraised value) ratio must not exceed 75%.
This is the fifth cut in rates made by Pag-IBIG in the last 5 years.
15th July 2016
Pag-IBIG plans to increase branches
Pag-IBIG or Home Development Mutual Fund is planning to increase its branches in order to provide better services. Within, the last 6 years, Pag-IBIG had increased its branches to 113. In the National Capital Region alone, it has 30 branches at present. It recently opened a new branch in Valenzuela city to make it easy for the residents to access the Calamity Loan (CL) and Multi-Purpose Loan (MPL) services provided by the agency. This branch provides the loan amount through Land Bank Cash Card or Pag-IBIG Citi Prepaid Card. It also issues Member’s Statement of Accumulated Value (MSAV) and Member’s identification number (MID). Due to the increase in branches, the agency is able to simplify the transaction process for all its members.
20th June 2016
Pag-IBIG Fund Office to use E-Payment Collection Facility
Pag-IBIG Fund Office or the HDMF (Home Development Mutual Fund) has informed its regional employers to remit their loan payments and membership contributions using the e-system of the partner banks of the Fund.
Pag-Ibig Area Head, Lilia Angoluan has announced that going forward, all employers will have to pay their loans and premiums through accredited partner banks of the Fund by using the EPCF (Electronic Payment and Collection Facility) platform.
The EPCF platform will provide employers with a host of benefits that include making payments at any point in time and place, faster transactions, accurate recording and will additionally save time and money (such as transportation cost).
This process will start from July 1, 2016 after which no over-the-counter payments will be accepted for short term loans, multi-purpose loans, membership savings etc. Over-the-counter payments will only be accepted in the case of housing loans wherein members/employers can directly transact at any of the Pag-IBIG Fund Offices.
18th June 2016
Pag-IBIG Opens Service Desk in Canada
The Home Development Mutual Fund or Pag-IBIG opened a service desk in Canada in order to strengthen its ties with members of Overseas Filipino Worker (OFW) residing in that country. Around 700,000 Filipinos, including members of OFWs, immigrants and permanent residents, live in Canada. A statement released by Pag-IBIG indicated that there is a huge demand for Pag-IBIG housing loan among Filipinos living in Canada and so the company decided to open an office in the country. Filipinos living in Canada will now find it easier and simpler to avail the products and services offered by Pag-IBIG.
03rd May 2016