Getting your own home is a huge adulting milestone. Because it’s such a big step, it might seem daunting, but with preparation and know-how, you can make it happen. Enter: the Pag-IBIG Housing Loan.
What is Pag-IBIG?
Pag-IBIG stands for “Pagtutulungan sa Kinabukasan: Ikaw, Bangko, Industriya at Gobyerno.” It’s a government program dedicated to helping Filipinos purchase homes of their own. With a Pag-IBIG loan, you can purchase a home, lot, or residential condominium unit — either pre-owned or newly constructed. You also have the option to build your dream house, renovate/repair an existing one and even buy a vacant lot.
The maximum loanable amount can depend on a few factors like your income, capacity to pay, and the loan’s purpose. Generally, though, Pag-IBIG housing loans can go up to four million pesos. That’s a good amount of money that could help you buy your dream home!
There are four kinds of Pag-IBIG loans: the Multi-Purpose Loan, the Housing Loan, the Calamity Loan, and the Short-Term Loan. Each one is tailored to meet different needs.
- Multi-Purpose Loan – This loan can be used for personal purposes such as medical emergencies, travel expenses, tuition fees, and more.
- Housing Loan – This loan is specifically for financing housing-related expenses such as land purchase or house construction/renovation.
- Calamity Loan – This type of loan provides assistance to those whose properties were damaged due to natural disasters.
- Short-Term Loan – This loan can be used for any kind of expense, from medical procedures to business capital.
Are you eligible for a Pag-IBIG Housing Loan?
Before you even apply for a Pag-IBIG Housing Loan, make sure you meet the following requirements:
- Active member with at least 24 months savings
- Not more than 65 years old at the date of loan application and is not more than 70 years old at the date of loan maturity
- Legal capacity to acquire and encumber real property
- No foreclosed, canceled, bought back, or voluntarily surrendered Pag-IBIG housing loan
- If with an existing Pag-IBIG Housing account or Short-Term Loan (STL), payments must be updated
Once you’ve determined that you meet all the requirements, it’s now time to apply for your dream home!
Pag-IBIG Housing Loan: A Step-by-Step Guide
The Pag-IBIG Housing Loan application process may seem complicated, but when you break it down into individual steps, it’s actually quite simple. Here’s a step-by-step guide to getting your own home:
Step 1: Complete your Pag-IBIG Housing Loan requirements
You will need the following documents:
FROM BORROWER
- Two copies of the Housing Loan Application form (HQP-HLF- 068/HQP-HLF- 069), along with recent ID photos for both borrower and co-borrower (if applicable)
- One photocopy (back-to-back) of a valid ID of Principal Borrower and Spouse, Co-Borrower and Spouse, Seller and Spouse, and Developer’s Authorized Representative and Attorney-In-Fact (if applicable)
- Proof of Income
- For Locally Employed
- 1 original signed Certificate of Employment and Compensation (CEC), noting the gross monthly income plus any other allowances or benefits received by the employee.
- 1 photocopy of your most recent Income Tax Return (ITR) with attached BIR Form No. 2316, certified by the BIR or an authorized representative of the employer.
- 1 certified true copy of 1 month payslip. The payslip should be from within 3 months prior to the date of loan application and should be signed by an authorized representative of the employer.
- NOTE: Government employees who want to pay their loan amortization through salary deduction should submit an original copy of their payslip.
- For Self-employed
- ITR, Audited Financial Statements, and Official Receipt of tax payment from bank supported with DTI Registration and Mayor’s Permit/Business Permit
- Commission Vouchers reflecting the issuer’s name and contact details (for the last 12 months)
- Bank Statements or passbook for the last 12 months (in case income is sourced from foreign remittances, pensions, etc.)
- Copy of Lease Contract and Tax Declaration (if income is derived from rental payments)
- Certified True Copy of Transport Franchise issued by an appropriate government agency (LGU for tricycles, LTFRB for other PUVs)
- Certificate of Engagement issued by the owner of the business
- Other documents that would validate the source of income
- For Overseas Filipino Workers (OFW)
- Employment Contract:
- Employment Contract between employee and employer; or
- POEA Standard Contract
- Notarized Certificate of Employment and Compensation (CEC)
- CEC written on the Employer/Company’s official letterhead; or
- CEC signed by employer (for household staff and similarly situated employees) supported by a photocopy of the employer’s ID or passport
- Income Tax Return filed with Host Country/Government
- NOTE: If documents are in foreign language/s, English translation is required.
- Employment Contract:
- For Locally Employed
FROM SELLER (and/or BORROWER)
- Transfer Certificate of Title (TCT) (latest title, Certified True Copy). For Condominium Unit, present TCT of the land and Condominium Certificate of Title (CCT) (Certified True Copy).
- Updated Tax Declaration (House and Lot) and Updated Real Estate Tax Receipt (photocopy
- Vicinity Map/Sketch Map leading to the Property subject of the loan
Step 2: Submit your Pag-IBIG housing loan application
You may submit your form and initial requirements online via Virtual Pag-IBIG. To do so, click here.
Then, submit your form and the requirements by going to your nearest Pag-IBIG Housing Business Center or Pag-IBIG Fund branch. To find out where the closest one is, click here.
Step 3: Receive your Notice of Approval and Letter of Guaranty
If your application is complete and in order, you will receive your Notice of Approval and Letter of Guaranty after 17 days. You will be advised where you can claim your NOA and LOG.
Step 4: Complete the requirements indicated in your Notice of Approval
Complete the requirements stated in your NOA within 90 days. This includes the transfer of title and annotation of mortgage, among others.
Step 5: Receive your Pag-IBIG Housing Loan Proceeds!
Once you submit your post-approval requirements, you will receive the proceeds of your loan within ten (10) working days. You will be notified about how your loan proceeds will be released safely and conveniently.
Step 6: Start paying your Pag-IBIG housing loan
Start paying your Pag-IBIG loan exactly one (1) month after its release date. Remember to use your permanent housing loan acct number 12Digit HLAN when paying. For your convenience, you may pay your Pag-IBIG housing loan online via Virtual Pag-IBIG or via our accredited collecting partners’ outlets or their online payment facilities.
Pag-IBIG Fund offers various payment options for your Pag-IBIG housing loan:
- Virtual Pag-IBIG (VPI)
- Online Banking via accredited collecting partners such as UCPB Connect, Unionbank of the Philippines and PNB E-banking website
- Over-the-Counter at accredited collecting partners such as Bayad Center, Palawan Express, 7-11 and SM Business Centers
- ATM through accredited collecting partners such as Bancnet, Megalink, Unionbank and PNB
- Autodebit Arrangement (ADA) with selected banks: Banco de Oro, Metrobank, RCBC and PNB
- Autodebit Arrangement (ADA) with Pag-IBIG Fund’s partner pag-ibig accredited banks: China Bank Savings, East West Bank and Security Bank.
- Formal payments through Pag-IBIG branches nationwide
- Postal money order payment through selected PhilPost Provincial Offices.
- Payment centers abroad for Overseas Filipino Workers (OFWs)
Step 7: Track your loan account status
You can view and track your loan account status in several ways:
- Through the Pag-IBIG Fund website by logging in to e-Services, or through Virtual Pag-IBIG
- Through our interactive voice response (IVR) facility by calling the Pag-IBIG Hotline at 724-4244
- Through SMS or Text Inquiry via 0917 855 4Pag (091785542424).
You may also track your loan account status in Pag-IBIG Fund branches or through our accredited collecting partners.
Step 8: Enjoy your dream home!
Now that you have your Pag-IBIG housing loan, you can finally enjoy living in the home of your dreams! Remember to pay all fees due on time and keep track of your account status to ensure a smooth repayment of your loan and to avoid accumulating penalties and interest.
Congratulations in advance on your new home!
