How to Apply for Pag-IBIG Housing Loan: An Ultimate Guide

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For a lot of Filipinos who are already way past the infatuation phase, Pag IBIG only means one thing:

Housing loan.

Or more accurately, a key to escape the monthly grind of paying rent and making one’s landlord richer.

The problem, however, is not that we don’t know Pag IBIG housing loan exists.

Rather, most Filipinos are too scared or too intimidated to ask the right questions that they end up putting off their plans of having their own property.

As a result, an estimated 2.7 million Filipinos still don’t have a place they can call their own (Philippine Statistics Authority, 2010).

If you don’t want to be a statistic, there’s no better time to apply for a Pag IBIG housing loan than now.reg


Table of Contents

What is a Pag IBIG housing loan?

The Pag IBIG Fund, also known as the Home Development Mutual Fund (HDMF), was established on June 11, 1978, by virtue of Presidential Decree No. 1530 to serve the two basic needs of Filipino workers:

  • a national/government savings program; and
  • affordable housing/shelter financing.

In other words, Pag IBIG isn’t just a government agency you go to if you want to secure a housing loan.

It’s also a good alternative to a bank because the money you put in your Pag IBIG savings earns higher interest (4-5% versus 1% per annum offered by most banks) over time.

Your Pag IBIG savings also serve as collateral that will qualify you not just for housing loan but also for other Pag IBIG products like calamity and multi-purpose loans.

Pag IBIG actually stands for “Pagtutulungan sa Kinabukasan: Ikaw, Bangko, Industriya at Gobyerno.”

In a nutshell, the Pag IBIG fund enables the four sectors of the society (i.e., the borrower/member, the bank, the industry, and the government) to collaborate in developing a savings scheme that ultimately provides Filipinos with an affordable way to own a house.

Such is the effectiveness of the Pag IBIG Fund in providing ordinary Filipinos with the means to build or own their own houses that then-President Gloria Macapagal-Arroyo signed into law the Home Development Mutual Fund Law of 2009.

Through the said law, Pag IBIG membership has become mandatory for all Filipino workers whether hired by a local or foreign employer.


Pag IBIG Housing Loan vs. Bank Housing Loan: What’s the Difference?

In building their dream house or buying a property, Filipinos usually count on two housing loan providers: Pag-IBIG Fund and banks.

Each provider has its pros and cons. Your final decision should be based on your own criteria.

However, priority should be given on factors that matter more like qualifications, loanable amount, interest rate, loan term, and miscellaneous fees.

Qualifications: Pag IBIG only offers housing loans to its members. Most banks, on the other hand, don’t require borrowers to be a member or a savings account holder in order to qualify for their housing loans, provided that the applicant can present a proof of income and/or employment.

Minimum wage earners are more likely to get rejected when applying for bank housing loans. After all, banks are still businesses and they have the prerogative to reject your application if you can’t prove you’re capable of paying off your loans.

Pag IBIG, by contrast, have an Affordable Housing Loan Program specifically designed to give low-income earners the chance to have their own house.

Loanable amount: Borrowers under the Affordable Housing Loan Program can avail of housing loans up to Php 750,000 while regular applicants with above-average income can borrow up to Php 6 million.

Banks, meanwhile, have an average minimum loanable amount of Php 300,000. For both housing loan providers, the final loanable amount depends on several factors or criteria set by the provider itself.

Interest rate: Those who are availing of Pag IBIG housing loans enjoy lower interest rates: as low as 3% for low-income earners and 5.375% (from the previous 5.5%) for regular housing loan borrowers in a 1-year fixed pricing period.

For this reason, Pag IBIG housing loan can now compete with banks which offer housing loans with a similar interest rate of 5.5% for the first year (e.g. Metrobank and BDO) and up to 6.50% for a 3-year fixed pricing period.

Moreover, Pag IBIG isn’t allowed by law to increase its interest rate beyond 2% per annum. By contrast, banks don’t have a ceiling on the interest rate.

Loan term: In Pag IBIG, borrowers can choose how long they’ll pay off their housing loan, with 30 years as the maximum loan period. Banks offer loans with a repayment period ranging from 20 to 25 years, depending on the purpose of the loan.

Miscellaneous fees: Pag IBIG guarantees applicants they will not be charged with other fees other than the Php 1,000 to be paid during application and another Php 2,000 before loan release.

Depending on your bank, fees may include an appraisal fee of up to Php 4,000, a handling fee of Php 5,000, a notarial fee of Php 500 as well as doc stamps tax and registration fee.

Since you’re reading this article, it’s safe to assume that you’re leaning more towards Pag IBIG housing loan.

The best part of being a Pag IBIG member is you get to keep all your contributions into your own savings account.

Even if you don’t avail of the housing loan, your money can potentially earn a lot of dividends over the years. The money will stay in your account until you decide to withdraw your savings at the end of the membership period which is 20 years.


How to Apply for Pag IBIG Housing Loan: A 8-Step Guide to Getting Approved.

This guide is written with the assumption that you’re already a member of the Pag IBIG fund. If you’re not one yet, register now so you can avail of the Pag IBIG housing loan and enjoy other member-exclusive benefits.

You should also be aware that there are two modes of applying for the Pag IBIG housing loan:

  • Developer-Assisted where the developer helps you in the application; and
  • Retail in which the member applies for the housing loan on his/her own.

The procedures below are intended for the “Retail” applicants who want to avail of the housing loan unassisted.


1. Know your purpose for applying for the Pag IBIG housing loan.

pag ibig housing loan 1

Contrary to popular belief, a Pag IBIG housing loan isn’t only used to finance the construction of a new house.

The loan can support you financially if you’re planning to do one of the following:

  • Buy a fully-developed residential lot or adjoining residential lots not exceeding 1,000 sq.m.
  • Buy a residential house and lot, condominium unit, or townhouse (inclusive of the parking lot). The property can be new, old/pre-owned, an acquired asset of the Pag-IBIG Fund, or adjoining houses and lot/condominium units/rowhouses/townhouses.
  • Build or construct a residential unit on a residential lot owned either by you or a relative.
  • Give your home a major repair or overhaul. Take note that Pag-IBIG offers two options to finance home improvement. The Pag IBIG housing loan is intended for homes that need more serious and costly repairs. For minor home improvement or renovation, you can avail of the Pag IBIG Multi-Purpose Loan instead.
  • Refinance an existing housing loan provided that the institution where you borrowed the money is acceptable to Pag IBIG and that your account is updated at least 1 year upon application as supported by official receipts and a Statement of Account.

Pag IBIG also allows borrowers to avail of the housing loan for a combination of the above-mentioned purposes. However, the combinations are only limited to the following:

  • Buy a fully-developed lot not exceeding 1,000 sq.m. + Build a residential unit on the said lot.
  • Buy a residential unit (old or new) + Home improvement.
  • Refinance an existing housing loan or mortgage + Home improvement.
  • Refinance an existing loan for the purchase of a lot + Build a residential unit on the same lot.

Lastly, Pag IBIG can also finance one or more of the loan purposes as well as the transfer of the title. The combinations are only limited to the following:

  • Buy a residential unit + Transfer of title to the borrower.
  • Buy a residential unit + Home improvement + Transfer of title to the borrower.
  • Buy a residential lot + Transfer of title to the borrower.
  • Buy a residential lot + Build or construct a house/residential unit + Transfer of title to the borrower.


2. Choose the Pag IBIG housing loan program that matches your current income level.

Unlike banks in the Philippines, Pag IBIG Fund offers two programs tailored to the borrower’s capacity to pay:

a. Affordable Housing Loan Program.

This is exclusively offered to low-income or minimum wage earners with a gross monthly income not exceeding Php 17,500.

In this program, qualified applicants can borrow up to Php 750,000 and enjoy a lower interest rate and minimum monthly payment. For instance, applicants who got approved for a Php 450,000 housing loan can pay less than Php 2,000 every month with an interest rate of only 3% for the first five years.

b. Regular Housing Loan Program.

This is for applicants with above-average gross monthly income. Under this program, qualified applicants can borrow up to Php 6 million with an interest rate of as low as 5.375%  (one-year fixed pricing period).

To determine how much you can borrow from the Regular Housing Loan Program, Pag IBIG uses the following criteria:

  • Your actual need.
  • Your desired loan amount.
  • Your current income which suggests your capacity to pay.
  • The loan-to-appraised value ratio.

After determining the value of each criterion above, Pag IBIG will pick the lowest value and declare it the loanable amount.

Alternatively, you can also use the Pag-IBIG Fund Housing Loan Affordability Calculator which gives you an estimate of how much you can borrow based on your income, fixed pricing period, estimated value of the property, and your preferred repayment term.

Note, however, that the online calculator is only used as a guide. The actual loanable amount will vary depending on the results of Pag IBIG’s evaluation.


3. Check if you’re eligible to apply for the Pag IBIG housing loan.

pag ibig housing loan 2

The Pag IBIG housing loan program is available to anyone with the following qualifications:

a. A Pag IBIG Fund member with 24 months worth of contributions at the time of application.

New members who have been paying contributions for at least 12 months can also complete the required amount of contributions through lump-sum payment.

Members who have contributed for at least two years and whose housing loans exceed Php 500,00 will be required to pay the upgraded membership contribution rates upon approval of the said loan and onwards.

Related Article: Pag-IBIG Contribution Table (with Detailed Computations and Explanations)

b. Not more than 65 years old at the time of loan application and not more than 70 years old at loan maturity.

Remember, the maximum loan period is 30 years.

For senior applicants, your loan period is determined by how close your age is to the maximum age of 70. For example, if you’re 50 years old at the time of application, your maximum loan period is only 20 years because you’ll be turning 70 by the time the period ends.

c. With a legal capacity to acquire the property.

d. Has passed the background checks (credit/employment/business, etc.) conducted by the Pag IBIG Fund.

e. Has no outstanding Pag IBIG multi-purpose or calamity loan either as principal borrower or co-borrower.

f. No previous Pag IBIG housing loan that ended up with the borrower’s property being foreclosed, brought back to default, canceled, or surrendered (dación en pago).

g. If with existing Pag IBIG housing loan, either as principal borrower or co-borrower, it must be updated (READ: Can a Pag IBIG member apply for multiple/additional housing loans?)


4. Complete all the Pag IBIG housing loan requirements.

pag ibig housing loan 3

Applicants must submit two sets of fees and requirements–one during the loan application and another upon or prior to loan release.


Required Fees and Documents (Upon Loan Application).

a. Processing fee (non-refundable) of Php 1,000 and appraisal fee of Php 2,000.

A fee of Php 1,000 will also be charged for every re-evaluation or re-filing of housing loan application.

b. Duly accomplished Housing Loan Application Form with recent ID photo of the principal borrower or co-borrower (if applicable).

c. Proof of income.

For Employed, bring ANY of the following:

  • Notarized Certificate of Employment and Compensation (CEC) showing your gross monthly income, allowances, or monetary benefits.
  • Income Tax Return for the year prior to the date of loan application with attached BIR Form No. 2316, received and stamped by the BIR.
  • Any certified 1-month payslip from the last three months prior to the date of the loan application. If you’re a government employee, the payslip must be submitted with CEC or ITR.

For Self-Employed, bring ANY of the following:

  • Income Tax Return (ITR), Audited Financial Statements, and Official Receipt of tax payment from the bank supported with Mayor’s Permit/Business Permit and DTI Registration.
  • Commission vouchers issued within the last 12 months and showing the issuer’s name and contact details.
  • If your income comes from pensions, foreign remittances, etc., a copy of bank statements or passbook for the last 12 months.
  • If your income comes from rental payments, a copy of the Lease Contract and Tax Declaration.
  • Certified True Copy of Transport Franchise issued by the authorized government agency like the LGU for tricycles and LTFRB for other PUVs.
  • Certificate of Engagement issued by the business owner.
  • Other documents that can validate or prove your source of income.

For Overseas Filipino Workers (OFW), bring any of the following:

  • Employment Contract (Employment Contract between employer and the employee or POEA Standard Contract).
  • Certificate of Employment and Compensation (CEC). This CEC can be in the form of a document signed by the employer (for household staff and other similar employees) and supported by the employer’s passport or ID. A CEC written on the company/employer’s official letterhead is also accepted.
  • Income Tax Return filed with the OFW’s host country or government. If written in a foreign language, an English translation is required.

d. Photocopy (front and back) of one valid ID of the principal borrower and spouse, co-borrower and spouse, seller and spouse, owner of the title (for accommodation mortgage), and developer’s authorized representative/Attorney-in-Fact, if applicable.

The following is a list of valid government-issued IDs accepted by Pag IBIG Fund:

e. Latest Certified True Copy of the Transfer Certificate of Title (TCT). If you’re applying for a loan to purchase a condominium unit, present TCT of the land and a Certified True Copy of the Condominium Certificate of Title (CCT).

f. Photocopies of the updated Tax Declaration (house and lot) and Real Estate Tax Receipt.

g. Vicinity map or sketch of the property.

i. Additional Requirements (if applicable only).

For Purchase of Lot/Residential Unit.

  • Contract-to-Sell or similar agreement between the buyer and seller.

For Purchase of Lot with Construction of House (PLCH).

  • Contract-to-Sell or similar agreement between the buyer and seller.
  • Building Plans, Specification with Bill of Materials duly signed by the
    Licensed Civil Engineer or Architect.

For Purchase of Properties from a Developer/Association/Corporation.

  • License to Sell (applicable to the Developer only).
  • Secretary’s Certificate on the Authorized Signatory of the Developer/Corporation/Association.
  • One (1) valid ID of the Corporate Secretary and Authorized Signatory of the Developer/Corporation/ Association (Photocopy, back-to-back).

For Construction of House/Home Improvement.

  • Building Plans, Specification with Bill of Materials duly signed by the Licensed Architect or Civil Engineer. This requirement is to ensure that the loan will be used by the borrower for the intended purpose and not for something else like investing in a business, buying a car, etc.

For Accommodation Mortgage.

  • Building Plans, Specification with Bill of Materials duly signed by the Licensed Architect or Civil Engineer.
  • Notarized SPA for Accommodation Mortgagor.

For Refinancing.

  • Latest Statement of Account on Outstanding Loan Balance duly signed by the manager or the account officer.
  • Either of these two documents: Subsidiary Ledger or Official Receipt for the past 12 months (or any valid proof of payment).

For Refinancing with Construction of House/Home Improvement.

  • Latest Statement of Account on Outstanding Loan Balance duly signed by the manager or the account officer.
  • Either of these two documents: Subsidiary Ledger or Official Receipt for the past 12 months (or any valid proof of payment).
  • Building Plans, Specification with Bill of Materials duly signed by the Licensed Civil Engineer or Architect.

For OFW Pag IBIG Fund members.

  • Special Power of Attorney notarized either by a Philippine Consular Officer or a notary in the country where you’re working. The SPA should be authenticated by the Philippine Consulate.
  • Any or a combination of the following documents (written in or translated into the English language): Valid OWWA Membership Certificate; Payslip indicating income received and the period covered; Professional License issued by Host Country/Government; Residence card/permit (permit to stay indicating work as the purpose); Overseas Employment Certificate; Passport with appropriate visa (Working Visa); Bank remittance record.

Insurance Coverage.

  • Health Statement Form (Medical Questionnaire) for borrowers over 60 years old or those 60 years old or younger whose loans are over Php 2 million to Php 6 million.
  • For OFWs over 60 years old, a Health Statement Form (Medical Questionnaire) along with a copy of the medical examination result as required by the employment agency and conducted before you flew overseas.


Required Fees and Documents (Prior to Loan Release).

a. Php 2,000 upon loan take-out (to be deducted from loan proceeds).

Additional fees (if applicable):

  • Php 1,000 (to be deducted from the final loan release) for every inspection in excess of four inspections for accounts with staggered releases (e.g., home construction or improvement).
  • A handling fee of Php 2,000 for every additional check issued for split payment of loan proceeds.

b. TCT/CCT in the name of the borrower/co-borrower/s (if applicable) with proper mortgage annotation in favor of Pag-IBIG Fund (Owner’s Duplicate Copy).

c. TCT/CCT in the name of the borrower/co-borrower/s (if applicable) (Certified True Copy) with proper mortgage annotation in favor of Pag-IBIG Fund (RD’s copy).

d. Updated Tax Declaration (House and Lot) and Updated Real Estate Tax Receipt (photocopy) in the name of the borrower/co-borrower/s, if applicable.

Note: For refinancing, you will only need a photocopy of the updated Real Estate Tax Receipt.

e. Loan Mortgage Documents (to be provided by Pag IBIG upon loan approval):

  • Loan and Mortgage Agreement duly registered with Registry of Deeds with original RD stamp (HQP-HLF-162/163).
  • Duly accomplished/notarized Promissory Note (HQP-HLF-086/087).
  • Disclosure Statement on Loan Transaction (HQP-HLF-085).

f. Additional Requirements (if applicable only).

Surety bond (for properties that are subject to the lien imposed by Section 4 Rule 74 of the Rules of Court).

Collection Servicing Agreement with Authority to Deduct Loan Amortization or Post Dated Checks, if applicable.

For Purchase of Lot/Residential Unit.

  • Deed of Absolute Sale duly registered with Registry of Deeds with original RD stamp.

For Purchase of New Residential Unit only.

  • Deed of Absolute Sale duly registered with Registry of Deeds with original RD stamp.
  • Occupancy Permit.

For Purchase of Lot with Construction of House (PLCH) only.

  • Deed of Absolute Sale duly registered with Registry of Deeds with original RD stamp.
  • Occupancy Permit.
  • Building Plans/Electrical/Sanitary Permits duly approved by the building

For Construction of House/Home Improvement.

  • Occupancy Permit.
  • Building Plans/Electrical/Sanitary Permits duly approved by the building officials.

For Refinancing.

  • Updated Statement of Account on Outstanding Loan Balance duly signed by the Manager or the account officer.

For Refinancing with Construction of House/Home Improvement.

  • Updated Statement of Account on Outstanding Loan Balance duly signed by the Manager or the account officer.
  • Occupancy Permit.
  • Building Plans/Electrical/Sanitary Permits duly approved by the
    building officials.
  • Updated Tax Declaration (House) in the name of the borrower/ co-borrowers.


5. Submit all housing loan requirements to Pag IBIG.

There are two ways to do this: through online scheduling or by applying over the counter at the nearest Pag IBIG branch.

Option 1: Online Application.

Through the Online Housing Loan Application (OHLA), applicants can schedule an appointment with a Pag IBIG branch office for the submission of their application forms and documentary requirements.

The advantage of securing an appointment online is Pag IBIG will provide a special lane for you at the office and prioritize your application over regular walk-in applicants.

To make an appointment, you need to be a Pag IBIG member with a Membership ID (MID) or Registration Tracking No. (RTN).

If you already have one, then go to the OHLA website.

Pag IBIG Online Housing Loan Application (OHLA)

Select “Click here to Apply” and log in with your Pag IBIG MID/RTN, first name, last name, and the captcha code provided.

how to apply pag ibig housing loan online

Fill out the online application form with the requested information which includes:

  • Loan information like the purpose of the loan, mode of payment, desired loan term, desired re-pricing period, etc.
  • Personal information like your e-mail address, cell phone number, homeownership, years of stay in present home address, occupation, years in employment or business, number of dependents, gross monthly income, etc.
  • Preferred Pag IBIG branch office where you’ll submit the application form and housing loan requirements.

Once you’re done, click “Submit.”

You will then receive a reference number or Housing Loan Application Tracking Number via text message. Pag IBIG will also send you through e-mail the schedule of your appointment, address of the Pag IBIG office, and the Pag IBIG Fund contact person you’ll be transacting with.

Online appointment is ideal for applicants from the NCR/Metro Manila. If you live in the provinces where Pag IBIG offices are less likely to be overcrowded, choose the next option below.

Option 2: Over-the-Counter Application.

All applicants are required to file their Pag IBIG housing loan applications personally at:

  • For NCR/Metro Manila applicants: Servicing Department, 2/F JELP Business Solutions, 409 Shaw Blvd., Mandaluyong City; or at any Pag-IBIG branch offices.
  • For provincial applicants: Pag-IBIG branch office nearest you.

Here are the things you should expect to accomplish upon arriving at the Pag IBIG branch office:

1. Submit two copies of the application form and the rest of the documentary requirements to any of these counters: Members Services Support Division-Servicing Department, Loans Origination-Housing Business Center, or Members Services Branch.

2. Pay the required processing and appraisal fees (see the list of requirements in step 4) plus the lump sum payment of membership savings (if applicable) at the Cash-Collection Division-Loans Support Services Department/Members Services. Don’t forget to get the Pag IBIG Fund Receipt.

3. Submit the receipt to the Members Services Support Division-Servicing Department/Loans Origination-Housing Business Center/Members Services Branch servicing counter which will then give you the Housing Loan Application Acknowledgement Receipt (HLAAR).


6. Wait for the approval of your Pag IBIG housing loan.

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Pag IBIG will notify you regarding the status of your housing loan application within 17 days. 

In case you get denied, you’ll receive a Notice of Disapproval (NOD) along with your loan documents.

If your application is approved, expect a call from Pag IBIG informing you when you can pick up the Notice of Approval (NOA) and Letter of Guaranty (LOG).

Let’s summarize the procedures you’ll go through after getting approved:

a. Receive the Notice of Approval (NOA) and Letter of Guaranty (LOG).

Take note that LOG is not applicable to housing loans intended for house construction or home improvement.

Only the borrower can receive the NOA. For OFWs who can’t make it home to personally receive the NOA, Pag IBIG can release it to the authorized representative/Attorney-in-Fact provided that there’s a notarized Special Power of Attorney (SPA).

b. Sign your loan documents.

After receiving the NOA and LOG from the Pag IBIG, go straight to the Members Services Support Division-Servicing Department/Loans Origination-Housing Business Center/Members Services Branch servicing counter.

There, a Pag IBIG officer will discuss your loan obligations as well as the terms and conditions of the following loan documents:

  • Disclosure Statement on Loan Transaction (DSLT)
  • Loan and Mortgage Agreement (LMA)
  • Promissory Note (PN)

Once you’ve fully understood their content, affix your signature to these documents. If you’re borrowing with your spouse or a co-borrower, both of you need to sign the documents.

c. Complete your NOA requirements for check release.

At this point, the only thing standing between you and the release of Pag IBIG housing loan is the list of requirements in the Notice of Approval.

The complete NOA requirements must be submitted within 90 days or else you won’t get the check and receive a Notice of Deficiency instead.

All documentary requirements must be notarized at the place or city where they are executed.

The process of completing the NOA requirements vary depending on the purpose of the housing loan. To give you an idea, please check out the following checklists:

For Purchase of Lot/Condominium Unit/House & Lot.

  • Give the LOG to the seller.
  • Proceed to the BIR for payment of Capital Gains Tax and Documentary Stamp Tax. The BIR will issue Certificate Authorizing Registration.
  • Proceed to the Local Government Unit (LGU) for payment of Transfer Tax.
  • Proceed to the Registry of Deeds (RD) for the transfer of the title and annotation of mortgage.
  • Proceed to the LGU for the transfer of Tax Declaration.
  • Submit complete requirements to Pag IBIG Fund.

For Purchase of House and Lot Mortgaged with Pag IBIG Fund.

  • Proceed to the BIR for payment of Capital Gains Tax and Documentary Stamp Tax. The BIR will issue Certificate Authorizing Registration.
  • Proceed to the Local Government Unit (LGU) for payment of Transfer Tax.
  • Go to the Pag IBIG office to schedule a trip to the Registry of Deeds (RD) for transfer of title and annotation of mortgage.
  • Proceed to the LGU for transfer of Tax Declaration.
  • Submit complete requirements to Pag IBIG Fund.

For the Construction of House/Home Improvement.

  • Proceed to the BIR for payment of Documentary Stamp Tax.
  • Proceed to the Registry of Deeds (RD) for annotation of the mortgage.
  • Submit complete requirements to Pag IBIG Fund.

For Refinancing.

  • Proceed to the bank/financing institution to give the Letter of Guaranty (LOG) and Loan and Mortgage Agreement (LMA).
  • Proceed to the Registry of Deeds (RD) for annotation of the mortgage.
  • Submit complete Requirements to Pag IBIG Fund.


7. Claim your check/loan proceeds at the Pag IBIG Fund.

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Once the check is available for pick-up, you’ll get another call from Pag IBIG.

To claim the check/loan proceeds, present 2 valid IDs (see step 4 for a list of valid IDs accepted by Pag IBIG) at the Cash-Disbursement Division-Loans Support Services Department/Members Services Branch.

The check can only be released to the borrower or any one of the following:

  • An authorized representative provided that he/she submits a notarized Special Power of Attorney (SPA) and 2 valid IDs each of the principal borrower and the representative/Attorney-in-Fact.
  • The seller, if the loan purpose is one of the following: Purchase of Residential Unit, Lot Purchase, or Purchase of Lot and Construction of House.

The borrower will also be required to bring 12 PDCs (post-dated checks) if the payment is not through salary deduction (see next step for more information).


8. Start paying your monthly amortization.

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Amortization is defined as the process of spreading out a loan (in this case, a Pag IBIG housing loan) into a series of fixed payments over time.

Basically, it refers to the monthly payments that you’ll make for the next coming months and years to pay off the Pag IBIG housing loan.

There are different ways to pay your monthly amortization:

a. Payment through post-dated checks (PDCs).

If you choose this, you need to issue and submit 12 post-dated checks to the Pag IBIG Fund upon loan release. These checks will cover 1-year monthly amortization.

Get the Acknowledgment Receipt (AR).

Return to the Pag IBIG upon consumption of the 10 PDCs (exclusive of the remaining 2) to issue another 12 checks.

Always claim and keep the receipts from Pag IBIG each time you issue a check.

b. Payment through salary deduction.

If you opt for amortization payment via salary deduction (as most Filipino employees do), you need to submit Authority to Deduct to the Billing Division/Accounts Management and Billing Department/Loans Management and RecoveryHousing Business Center/Members Services Branch.

Upon loan takeout, an equivalent of one-month amortization will be deducted from the loan proceeds.

c. Other modes of payment.

  • Auto debit arrangement with banks.
  • Accredited collection partners.
  • Payment to an accredited developer with a Collection Servicing Agreement with the Pag IBIG Fund.
  • Other methods of payment that Pag IBIG Fund may implement in the future.


Tips and Warnings.

a. While we try our best to answer all possible questions in this guide, you should also be on the lookout for the latest schedules of Pag IBIG Housing Loan orientation program on their Facebook page.

In this program, which is conducted several times a year in specific Pag IBIG branches and venues, you can address your concerns directly to the Pag IBIG personnel.

b. Just like when you’re applying for a credit card, your credit score may also be reviewed during the evaluation of your Pag IBIG housing loan application.

A credit score contains vital personal information as well as your past financial transactions with banks and lending institutions.

Make sure your credit score is up-to-date, accurate, and isn’t tarnished by unpaid debts. You can secure a free copy of your credit score from the Credit Information Corporation (CIC) or any of its accredited credit bureaus.

c. Don’t go to Pag IBIG empty-handed. Before applying for a housing loan, you should already have saved up at least 20% of the property’s value for the down payment. 

The higher the down payment you can afford to pay, the more likely your housing loan application will get approved. It can also lower your interest rate, monthly mortgage, loan-to-value ratio, and loan term.

d. For the employed, the key to getting approved is to show you have a solid employment history. Job hopping and gaps in your employment history may be seen as red flags. Employment tenure means income stability and capability to pay off your housing loan.

e. If you’re afraid you might not be qualified due to insufficient income, convince someone with a regular job and good credit history to take you as a co-borrower. 

Pag IBIG allows a principal borrower to share the housing loan with up to two co-borrowers who can be a relative or not.

f. Carefully assess your current income and determine how much of it you can set aside for the monthly amortization. Ideally, the loan amount shouldn’t exceed your three-year salary while your mortgage or monthly amortization shouldn’t go beyond 20-30% of your gross monthly income.

Use the Pag IBIG’s housing loan affordability calculator to help you estimate the loan amount and monthly amortization based on your income and other factors.


Frequently Asked Questions.

1. How much will Pag IBIG deduct from my salary if my housing loan is approved?

2. What is a fixed pricing period?

3. I haven’t decided on which property to buy yet. Can Pag IBIG provide assistance?

4. Can I avail of the housing loan even if I still have an outstanding loan with Pag IBIG?

5. Can a Pag IBIG member apply for multiple/additional housing loans?

6. How many co-borrowers can I have?

7. What is the loan-to-value ratio?

8. How much can I borrow from Pag IBIG housing loan?

9. How long does it take for my Pag IBIG housing loan to be approved?

10. How can I apply for a Pag IBIG housing loan if I’m an OFW?

11. Can I make a lump-sum payment to reach the required 24 monthly contributions for Pag-IBIG housing loan?


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80 thoughts on “How to Apply for Pag-IBIG Housing Loan: An Ultimate Guide

  1. Hi. May gusto akong bahay na for sale sa isang subdivision. Pwede ko ba ito i-apply sa pag ibig housing loan? If yes, how?

  2. Hello,
    Yung check ba, hindi makukuha hanggang hindi nababayaran ang cgt/transfer title to buyer? Yung pang gastos kasi sa transfer eh sa loan sana kukunin kasi walang pera.

  3. Na-approve kame ng housing loan nung July 12, kaya start na kame ng hulog ng Aug 12. nag initial inspection kame ng bahay ng July 19 at sabi may final inspection pa daw para icheck if nagawa pa ung mga pinabago/sira/kulang nung initial inspection. Until now, Aug 20, malipas ang mahigit isang buwan wala parin balita sa developer. Sabi nung Engr ng developer na kasama namen nung initial inspection, ung mga pinto daw ng mga kwarto papalitan pa dahil di daw talga un ang pinto. un lang nilagay para pag nag inspect si PAG IBIG eh kumpleto. Sabi ng developer madami daw take out kaya natatagalan. Kaso sayang ung pera if nangungupahan ka lang tapos akala mo makakalipat ka na para isa nalang babayaran na bahay. Ndi po ba dapat pag take out na ready na talga ung bahay?

  4. I am ofw here in Doha Qatar.
    Working in japanese Embassy since 17 years
    And i like to try Renovation loan to pag me what is need.good for me if online transaction

    1. I want to know if I can apply any pag-ibig branches in the Philippines for a house renobation loan turn into a business building,while the property is in zamboanga del sur.

  5. Good day, totoo po ba na may minimum lot area na “28 square meter” para sa construction loan and other housing loan options?

  6. Good day. Paano po ba mag avail ng foreclosed houses ng Pag ibig? Ano po mga procedures ang kinakailangan para makapag avail po. Salamat po.

    1. For foreclosed property sa pagibig idadaan po nila sa bidding but u have to go in pagibig to ask about the availability area or location.

  7. Sir tanong lng po ako. May housing loan q worth 571k with an interest of 6.375 per annum payable for 10 years. nakahulog na ako ng mga more than 5months po. Ngayon, gusto ko na po bayaran kasi nagkaroon na ako ng pera po. Ang babayaran ko na lng po b yong outstanding balance lng ba? Hnd na po ba kasama yong interest for 10 years na nakschedule ng pagbayad ko po?

  8. I want to buy a 1000 sqr meter lot and also build a house .. is it possible to loan?

  9. If someone who had a problem / outstanding credit with banks, will they allow applying for PAG-IBIG Loan?

  10. Good day!
    Ask ko lng po, paano PO ba mapadali Ang PG apply o pagkuha Ng mga vacant unit here in Cavite. Bale matagal na namin ini inquire Ang unit (a year na) kaso till now ay Wala parin SA listing Ng for sale or auction.. bale naipadlock na xa Ng Pag ibig staff.. kaso almost 1year na Wala parin..
    May nakuha kaming info dito na kelangan daw tirahan na nmin agad (squatan) para kmi Ang priority at SA Amin mapabigay ung letter of recommendation or referral to purchase .. Tama PO bang hakbang yon? Wala PO bang kaso yon? sigurado nman PO kaming kukunin namin at kng maaari NGA ah maicash na para mas mababa siguro presyo. Kng iaapraised po ay almost flooring at dingding nlng pkinabang, Wala na mga pintuan cr at kusina,Wala na lababo at toilet bowl.
    Please help me give a complete details para SA tamang gawin. Thanks in advance!

    1. As far as I know Sir, walang collateral pero some other housing loan like mga high end unit pagbig needs a co-borrower. It could be a relative or friends with good credit history.

  11. Goodeve may sinalo po ako n bahay sa Eastwood sub NASA 400k pa po ung balance pwed q po b? Ito e loan sa pag ibig kahit d pa sakin pangalan deed of sale lang hawak q

  12. Good day, employed po ako on a private company with a minimum wage..Gusto ko po sana mag apply for housing loan, never pa ako nag loan sa pag ibig..Maka avail po ba ako? Single mom po kasi ako and I’m planning to buy a lot, and the same time planning to build a new home.

      1. Good day

        tanong lg po pwd po ba maka apply nang housing long kung eh parepair lg yung bahay?

      2. Yes, but it depends on the extent of the repair your house needs. From the article: “The Pag IBIG housing loan is intended for homes that need more serious and costly repairs. For minor home improvement or renovation, you can avail of the Pag IBIG Multi-Purpose Loan instead.”

  13. Good day po. Pwede po b iapply s pag ibig pg bibili po ng lote lang? And halimbawa po worth 150k ilang yrs to pay po un my title nman po ung lote. salamat.

  14. Developers are excluding Pagibig Loans as option for payment. I think it’s not right that members will choose properties based on developers which allow Pagibig loans only. I though it should be that buyer will choose the property he wants and have all the loan options and Pagibig should always be in that option no matter which developer. Am I right?

  15. hi ask ko lang po matagal po ba talaga pumirma s ng cheque for loan take out si PAG IBIG? kase may loan take out na po kami nung May 29 pa sabi po ng developer wala pa daw pong sign..

  16. Good day!
    May lot po ako na may titulo. Plano ko po sana na maghousing construction loan sa pag ibig. May buliding plans na po etc. Kailangan po ba na mag construct muna ng 20% sa plano bago mag apply sa pag ibig?

  17. Hi! What if wala pa akong ITR kasi kakastart ko palang magwork as freelancer? Pwede na ba ako mag-apply sa Pag-IBIG as a voluntary member? Thanks!

  18. Paano po mag apply sa Pag ibig housing loan, Lupa lang po kasi ang gusto namin bilhin. Ano pong mga requirements?

  19. Hi. Hindi po ba kino-consider yung monthly incentives sa gross monthly income? Tyaka pano po if 1 year in-house financing po yung term of payment then gusto ko sana siya ilapat sa pagibig ngayon, need ko pa din po mag downpayment? Please help po.

  20. Our application had passed more than 20 days. all documents were submitted. And my wife with SPA emailed pag ibig for follow up. She received (cc email status) a follow up email reply. the email contained this information; to check where the folder and prioritize if for “CIBI”.
    What is “CIBI”? could these guys use a term that clients would understand. or simply spell out the “CIBI” so that the cc email would make sense to the applicant?
    Thanks and hoping for your good response on this inquiry.

    1. CIBI is an acronym for Credit Information Bureau, Inc., the office responsible for collecting/gathering information from prospective borrowers. Pag-Ibig will use data from CIBI such as your credit score/history to assess whether you’ve been a responsible borrower in your past financial transactions.

  21. Hi, Hope all is well. My aunt is planning to buy a house and lot thru Pag Ibig Housing Loan. She is single and wants me to inherit the property once she’s gone. She wants me to be included in the legal documents (title, etc.). My question is what if due to unforeseen circumstances, she dies early and the loan is not yet fully paid, will I be liable for the remaining balances? If yes, what if I do not have the capacity to pay? What are my options? Thank you so much in advance. God bless and more power!

  22. Grateful that you all took the time to gather all the data and processes in obtaining different types of Loan in PAG-IBIG. This site is informative and very helpful.

    I’m 51 years and never knew what PAG-IBIG stands for: “Pagtutulungan sa Kinabukasan: Ikaw, Bangko, Industriya at Gobyerno.”

    Again, with much appreciation and gratitude. Thank you for doing this for our “kababayans”.

    More power to your group. Saludo ako sa inyong lahat.

  23. If in case my housing loan gets approved,,pano po icocomputeyung 20% na down payment? Let’s just say na 2 million yung iloloan ko and the value of the land na imo mortgage ko is 200k? Magkano na po yung babayaran ko? Thanks

  24. Hello po, ask ko lang po. Meron akong binabayaran na lote sa banko right now. Gusto ko po sanang e transfer sa pay- ibig for longer term. I just found out na member po pala ako ng pag-ibig. But I never got a chance give my contribution. Di ko po alam kong anong nangyari nong nag apply ako sa US pa. Now I am very interested na e continue ang membership ko. I just turned 60 this April 16, 2019. Ano po ang dapat kong gawin at saan ako dapat mag apply? Your reply is very much appreciated. Thank you.

    1. Sorry po, I meant pag-ibig, not pay-ibig. Please reply po. I really need your assistance. Thank you.

  25. I am a recipient of Pag-ibig’s generous Housing Program. i am your avid fan and advocate. i always teel my friends to avail of your Housing Loan. a friend of mine is a freelance writer, not an employee. what documents would he need to secure? to apply for a housing loan. salamat for the reply.

  26. Once naapproved po ba ang housing loan nmin,magkano po ang ibabayad nmin sa pagibig for example 1.5M kailangan po ba naming magdown 20% sa pagibig upon approval?at ung monthly nman po khit estimated lng salamat po.

  27. Hello po. Ang sabi po dito and even sa Pag-ibig website 17 days lang daw ang processing ng housing loan or at least may feedback na sa result ng application. Nag-apply kami last March 12, pero hanggang ngayon wala pa ding advise sa amin. Tumawag na din ako sa Pag-ibig, wala pa daw. Nakakalungkot, ang tagal maghintay. 🙁

      1. ang sabi lang, for CI pa daw, marami din daw kasing signatory. Sana hindi na lang nila nilalagay na 17 days processing lang may results na.

        Ask ko na din po, sa acquired assets po kasi yung kinukuha naming house and lot. sabi sa website ng Pag-ibig, ang mga kailangan bayarang muna at ang 1,000 na reservation fee, 2,000 para sa processing fee at 100 para sa documentary stamps. Pero pinagbayad na din kami ng mga advanced insurance for 1 year. Umabot ng almost 8,000 + ang binayaran namin. Sa website naka indicate dun na magbabayad lang kami ng mga insurance na iyon kapag, approved na ang application loan namin.

  28. Ano ano po ba ang requirements, in case of: may lupa na ako pero wala pa akong bahay, nais ko po sana magpatayo ng sariling bahay, is it consider as house construction?

  29. Hello , po sa lahat miron akung nabayad sa pag-ibig 2016 tapos gusto ko po sanang ituloy yung ayaw na nila akung payagan mag umpisa naman daw ako uli sayang naman yung nabayad ko ofw kasi ako at yrly ang bayad ko pina check ko sa anak ko kaya nalaman ko ang problema ko sa pag ibig ko t’wing bakasyun lang ako nakabayad sa pag ibig at ngayun gusto ko sanang ituloy ayaw nila yun nga umpisa naman daw

    1. Hello po paano po kapag 300k lang po ang hihiramin para magpaayos ng bahay.. Okey lang po ba Yun.. Thank you po

  30. Good afternoon po.

    Meron pong ibinebenta samin na residential na sa kasalukuyan ay tinitirahan na nmin dahil nung una po ay naisangla na sa amin, pero dahil sa wala naman na maipambabalik ang may ari nung property (as inherittance *wala pang subdivided ng land title) ay pinatutuluyan na nilang ibenta sa amin. Gusto po sana naming magloan thru pagibig ng aking kapatid papayagan po ba kaming makapagloan kung sakaling maiprovide lamang sa amin ay Deed of Sale? Salamat po sa tutugon.

  31. Hi,

    We are planning to avail housing construction loan,
    we can provide all requirements (building plan,bom,etc).
    Bago ba ma release yung money, they need to see that the construction is on-going?
    may nabasa kasi ako ibang guide ganun daw yung process.

    1. @John Michael Cruz

      According to Pag-IBIG, building plans lang po ang kailangan. All information posted here came from Pag-Ibig. If you want to ask additional questions, I suggest go to the nearest Pag IBIG branch.

      1. Hello. Good Day po. We are also planning to avail yung housing construction loan, ang main concern ko lang po is yung bahay is under my sister’s name. I am the one who will apply for the loan. Will they accept pa din po ba yung application ko? Thanks.

  32. How about to apply pagibig house paano nalalaman kung legit ang pag apply sa office or kakilala lang paano ko malalaman kung pagibig housing ito?

  33. 3. Check if you’re eligible to apply for the Pag IBIG housing loan.
    e. Has no outstanding Pag IBIG multi-purpose or calamity loan either as principal borrower or co-borrower.

    Hi po. I have existing salary loan? Need pa ba matapos ang salary loan before ma approve sa housing loan? Regular payment naman po sa salary loan.

    1. @Ellaine

      Hindi po puwede hangga’t hindi bayad ang salary loan nyo. Kung another housing loan po yan, may chance po kayo sana na maqualify to apply for another housing loan.

      Pakibasa na lamang po ito:

      1. Maaprub po kaya ng pag ibig kung ang house construction loan ay apartment ang ippagawa?

    2. Hello my tanong ako ng apply kmi sa lumina tpus nbyaran na nmin lahat . Pa process nlng po thru pag ibig ng early retirena po yung husband ko sa company pano po namin ma continue ang pag ibig yung housing namin sa lumina?

  34. Yun pobang gross monthly income is Family income(husband+wife) or individual lang? pano po kung malaki sa individualloan yun e LLOAN pero kaya naman po sana if husband and wife income..parheo po kaming OFW ng akn maybahay.

  35. Hiwalay ako sa asawa and kailangan ng pirma nya and valid id along sa application paano kung hindi ko alam kung nasaan na syA kasi wala kami communication what are my options

  36. For the construction of house na loan kasama ba na ko ang amount na buo? I mean materials and bayad sa pagpapagawa?

  37. Gud day. I want to buy a townhouse, pero naka loan pa sa pag ibig. Pwede ko b diretso iloan na hindi na ilalabas title and refinance for higher price

    1. Nagapply po kmi ng house construction loan kaso may problema daw po ang land title. Dun sa part ng technical details… Di raw maclose ung sa survey pa tawag doon? Namumublema kmi kc napasimulan na namin ang construction and mejo malaki na ang nagastos. Paano nlng po kaya.

      1. Same with us. Yung 13.17 naging 13.77. Typographical error ng encoder. We had to go to the Bureau of Lands para pagawan ng certification na mali ung technical description. Kakasubmit lng namin nung certification. Hopefully wala na additional na hihingin.

  38. Nagapply po ung asawa ko sa housing loan renovation.di po sya naaprubahan sabi ng taga pagibig may oustanding loan pa kame.kailangan pa raw tapusin ung oustanding loan.sayang po ung 3k na binayad namin di po na refund.
    Member po ako ng pagibig employee for 10yrs.gusto ko po sana ako na lang po ang mag apply for renovation ng bahay namin.pwede po ba ako.
    Baka di po ako maaprubahan sayang na naman po ung 3k ibayad ko.
    Sana matulungan nyo po ako.
    Para matapos na po ang renovation ng bahay namin.
    Salamat po.God Bless po….

  39. Hi, is a pag-ibig loan also possible for lots / condos under pre-selling? (i.e. no TCT / CCT yet, only contract to sell) What are the financing options for properties not yet turned over by the developer but we are already paying amortization for now?

  40. Paano po mag apply at hindi ko pa po na try kung allowed po ba akong mag apply for housing loan,, Thank u n God bless you po

    1. @Mechelle Capangpangan

      Hindi ko po alam kung ano po exactly ang katanungan nyo pero kung wala po sa article above ang sagot sa katanungan nyo, maaari po kayong pumunta sa pinakamalapit na Pag-Ibig branch at doon magtanong tungkol sa housing loan.

  41. Hello

    Just want to ask if ung multi purpose loan mo is na offset against sa TAV would it affect my approval in my housing loan?

    Thank you so much!

  42. Will my eligibility for a housing loan be affected or rejected if I have an existing and outstanding salary loan in a private bank? I am afraid to try applying for a housing loan because of this. I might fail because of the credit checks that Pagibig does before approving a housing loan.

    The bank or salary loan I have has been unpaid for years now.



    1. @Ryan erik abilar

      Unfortunately, one of the eligibility requirements for Pag-Ibig housing loan is this: “Has passed the background checks (credit/employment/business, etc.) conducted by the Pag IBIG Fund.”

      In other words, your chances of getting approved are slim, given that you have an unpaid bank loan.

  43. Sa experience ko the more na matagal years to pay the more malaki interest ng pagibig. At parang 4 months lang ata na delayed bayad mo mailalagay na sa collections agency account mo. Alam naman nating malaki problema natin sa pabahay at mahirap ang bansa natin ,mahirap trabaho ,paghahanap pera hindi parati pasko, parang hindi nakatulong ang programa.nakapag labas ka lang malaki pera tapos mareremata lang.

  44. Good day ,can i loan house and lot and lot at the same time. it has different Title. The lot is beside the house and lot , Same seller. Thank you

  45. i am a security guard of almost 6 years in minimum salary here in palawan pawnshop here in palawan, and my wife is an OFW can i avail housing loan. i want to fully paid my existing balance of my lot associatioin under social housing authority to get my tittle and also to continue to finish my house. can i avail housing loan pagibig

    1. @ARNOLD

      Yes, you can apply to refinance an existing housing loan. Pwede kang magavail ng Affordable Housing Loan program for minimum wage earners. Please read the article for more info.

  46. good day!i am a current ofw in oman and im planning for a housing loan wen i get back i qualified for that loan…i had a salary loan before way back 2012 now maybe offset…thank you

  47. Thank you for the information Pag ibig.. Me and my husband will plan for it so that we will have a house on our own…

    1. @Rachel Rebucan

      You’re welcome. We’re glad to be of help. We’ll add more information in the FAQ section so don’t forget to bookmark this article. Good luck!

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