The Pag-IBIG Fund housing loan is one of the most affordable ways for Filipino workers, including OFWs, to buy a house and lot or condo. It usually has lower interest rates and longer terms than bank loans. Here's what you need to know before applying.
Who can apply?
You may qualify for a Pag-IBIG housing loan if you:
- Are an active Pag-IBIG member with at least 24 monthly contributions. If you're short, you can usually pay the remaining months in a lump sum.
- Are not more than 65 years old when you apply.
- Have no Pag-IBIG housing loan that was foreclosed, cancelled, or bought back due to default.
- Have the legal capacity to buy property, and pass Pag-IBIG's background and credit checks.
How much can you borrow?
- Up to ₱10,000,000, depending on your capacity to pay, the appraised value of the property, and your age.
- Loan terms of up to 30 years.
- The interest rate depends on the repricing period you choose. Shorter fixed periods usually come with lower rates.
You can estimate your monthly amortization with the Pag-IBIG tab of my calculator.
Documents you'll need
For all borrowers
- Housing Loan Application form, with a recent ID photo
- Two valid government-issued IDs (yours, and your spouse's if married)
- Pag-IBIG MID number
- Proof of income (see below)
- PSA marriage certificate, if married
Proof of income
- Locally employed: Certificate of Employment and Compensation, latest payslips, or your latest Income Tax Return
- Self-employed: Income Tax Return with audited financial statements, DTI or business permit, and bank statements
- OFWs: employment contract or Certificate of Employment and Compensation, plus payslips or remittance records
If someone will process the loan for you (common for OFWs)
- Special Power of Attorney (SPA), apostilled or consularized if signed abroad
- Valid IDs of your attorney-in-fact
Property documents
For a new house and lot or condo, the developer usually prepares the property documents, such as the title, tax declaration, and contract to sell. For a pre-owned property, the seller provides them.
Step-by-step process
- Choose the property and pay the reservation fee to the developer.
- Pay the equity / down payment based on the developer's payment terms.
- Submit your loan documents. The developer or I will help you check that they're complete.
- Pag-IBIG evaluates your application and appraises the property.
- Loan approval, after which you sign the loan documents.
- Loan take-out: Pag-IBIG releases the loan proceeds to the developer, and you start paying your monthly amortization to Pag-IBIG.
Common reasons for delays
- Missing or unsigned documents, or IDs that are expired
- Gaps in contributions that haven't been paid
- Proof of income that doesn't match the declared salary
- For OFWs: an SPA that is not apostilled or consularized, or that doesn't specifically cover the loan
Need help preparing your documents? I assist buyers and OFWs with Pag-IBIG applications. Message me or read the guide for OFWs.