As a premier conduit that helped thousands of Filipinos achieve their desire to own their homes, Pag-IBIG continues to fulfill dreams. But to those eligible members who have yet to take advantage of this offer, here are the answers to some of the most commonly-asked questions about Pag-IBIG Affordable Housing Program.
What are the qualified purposes of Pag-IBIG loans?
Pag-IBIG housing loans may be used to finance the:
- Purchase of a fully-developed residential lot or adjoining lots whose area do not exceed 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 Pag-IBIG member.
Am I eligible to apply for Affordable Housing Program?
Members who are eligible to avail of the Program are those who satisfy the following requirements. Pag-IBIG member:
- must have made 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 ₱17,500.00 for those working in Metro Manila and ₱14,000.00 for workers in other regions;
- must not be 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 or giving back of the property mortgaged to lender in exchange of discharge from the mortgage debt.
I am an eligible member; how much can I borrow?
- A qualified Pag-IBIG member may borrow up to a maximum amount of ₱750,000. The amount depends onthe 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 qualified Pag-IBIG members may be secured into a single loan provided they are related within the second civil degree of consanguinity or affinity.
What is the loan to appraisal value ratio?
The loan to appraisal value ratio is:
|Loan Amount||Loan-to-Appraisal Value Ratio|
|Up to ₱450,000||100%|
|Over ₱450,000 to ₱750,000||90%|
What are the loan’s interest rates?
For the first ten years of the loan, interest rate for loans of up to ₱450,000 is 4.5% provided the gross monthly income is ₱15,000 for those working in Metro Manila and ₱12,000 for workers in other regions. For loans of up to ₱750,000, the interest rate is 6.5%, provided the gross monthly income for those working in Metro Manila is not more than ₱17,500, and not more than ₱14,000 for workers in other regions.
At the end of the ten-year period, the interest rate shall be re-evaluated based on the prevailing interest rate of Pag-IBIG Fund’s pricing framework or it shall be increased by 2%, whichever is lower. 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.
How long should I pay for the loan?
The maximum repayment period for the loan is thirty (30) years.
Are there any other charges collected?
Processing fee of a loan shall be ₱3,000: ₱1,000 is paid upon filing of the loan application and the remaining ₱2,000 will be paid upon loan takeout.
Where to file Housing Loan Application?
- Housing loan application may be filed online on the Pag-IBIG website.
- Housing Loan applicants may also go to the Pag-IBIG Metro Manila/Regional Branch that has territorial jurisdiction over the property subject of the loan.
What is the Processing Time?
The regular processing time for a housing loan application is 15 working days, provided the borrower has submitted all the necessary requirements.