The best way to own a decent home is through the Pag-Ibig Housing Loan program. However, many Filipinos do not really know about the Pag-Ibig Fund and how to avail of its housing loan program.
In this blog, we will discuss the Pag-Ibig Fund and its programs, particularly its housing loan program. We offer step-by-step guide to help you. If you have some questions, please feel free to contact us. We offer some guidance free of charge. It is our desire to help you.
THE PAG-IBIG FUND
THE PAG-IBIG FUND
The Pag-Ibig (Pagtutulungan: Ikaw, Bangko, Industriya, at Gobyerno) Fund is a response of the government to twin problems of the Filipino workers: Savings and Housing. The fund was created to establish a national savings program and an affordable shelter financing scheme for Filipino workers.
Under Republic Act No. 9679 - the Home Development Mutual Fund Law of 2009, Pag-IBIG Fund has two mandates: (1) to set up a forced savings scheme for all Filipino workers, and (2) to invest the fund in housing via loans to members and developers.
Membership
Monthly Contribution
Savings for Retirement
PAG-IBIG LOANS
Calamity Loan
Multi-Purpose Loan
Housing Loan
HOW TO BECOME A PAG-IBIG MEMBER
There are two types of PAG-IBIG members: mandatory members and voluntary members.
Mandatory members - refer to those individuals whose membership were made mandatory by the enactment of Republic Act No. 9679 in 2009.
Voluntary members - refer to those individuals whose membership were not mandated by the said law, but are still interested in availing of the benefits attached to such membership.
QUALIFICATIONS FOR MEMBERSHIP
Below are the list of qualifications to become a Pag-IBIG Fund member:
Employees who are ought to be covered by SSS, including but not limited to:
Private employees not over 60 years old;
Household helpers whose monthly earnings are at least Php 1,000;
Filipino seafarers, upon entering into a contract of employment with the manning agency and the foreign ship owner as employer;
Self-employed individuals not over 60 years old, with monthly earnings of at least Php 1,000; and
Expatriates who are not over 60 years old and are compulsory members of the SSS.
Employees who are mandatory members of the GSIS, including members of the Judiciary and the Constitutional Commissions (COMELEC, COA, CSC).
Uniformed members of the AFP, BFP, BJMP, and PNP.
Filipinos employed by foreign-based employers, whether deployed in the Philippines or abroad.
Note: If you are not included in the list above, you can become a voluntary member. The general rule is that you are at least 18 years old but not over 65 years old. Below are the following qualifications:
Non-working spouses whose employed spouses are registered members and consents to the membership of the former.
Filipino employees of foreign states or international organizations.
Employees of companies that are granted waivers or privileges purporting to suspend the coverage of the fund.
Leaders and members of religious groups.
A recently unemployed member who would like to continue paying his or her personal contributions.
Public Officials not covered by the GSIS, such as Barangay officials.
Other earning individuals and groups, as may be determined by the Board.
HOW TO APPLY
HOW TO APPLY ONLINE
HOW TO APPLY FOR PAG-IBIG HOUSING LOAN
There are two (2) modes of applying for a Pag-IBIG housing loan:
Developer-Assisted - the developer assists the member in his/her housing loan application.
Individual Retail - the member applies directly to the Pag-IBIG Fund
DEVELOPER-ASSISTED HOUSING LOAN
Reserve the property of your choice.
Pay the reservation fee and signed the reservation agreement.
Fill out the Pag-IBIG Fund’s Housing Loan Application and submit of required documents. (See below for HLA and checklist)
The developer shall process your loan with Pag-IBIG Fund.
Wait for the confirmation and further instructions from the developer’s office.
INDIVIDUAL RETAIL HOUSING LOAN
Step 1: Get a Checklist of Requirements
Step 2: Submit your HLA and other forms and pay the processing fee of P1,000.
Step 3: Wait for your Notice of Approval (NOA)/Letter of Guaranty (LOG) and sign your loan documents.
Step 4: Submit all your NOA requirements to Pag-IBIG Fund for the release of your check.
Step 5: Receive your loan proceeds.
Step 6: Start your monthly amortization payments.
WHY CHOOSE PAG-IBIG HOUSING LOAN?
Compare the two data below: The Pag-Ibig Housing Loan rates and the bank financing rates:
Pag-IBIG rates:
Bank rates:
Based on the data above, the Pag-Ibig rates are better than the bank rates. It is lower at 5.376% for fixed one year period. As of April 2021, only BPI (out of 10 commercial banks) offers 5.25% fixed one year period. Others offer at 5.5% to 6.5%. I heard HSBC offers at 4.99%. However, these low bank rates are come on rates to entice customers and after one year, the borrower will pay the prevailing market rates, estimated at 7% to 9% per annum. This is why, most home buyers prefer the Pag-IBIG Housing Loan compared to the bank's home financing. Moreover, Pag-Ibig has longer term for repayment up to 30 years and therefore, lower monthly amortization. For wise budget conscious Filipinos, they prefer to avail of the Pag-Ibig Housing Loan. However, for properties with more than P5 million loanable amount, some homebuyers prefer the bank home financing.
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