13/04/2022
🏘️🏘️🏘️PAG IBIG LOAN FACTS:
Basic Things to Know about PAG-IBIG Loans: Are you a PAG-IBIG Fund member wanting to file a loan application? Here's your starting point.
Pag-IBIG has been improving its loan application process.
Pag-IBIG is best known in providing housing loan programs in the Philippines, which helps most of its member to own a house. HDMF and Pag-IBIG is the same.
HMDF stands for Home Development Mutual Fund while Pag-IBIG means Pagtutulungan sa Kinabukasan: Ikaw, Bangko, Industriya at Gobyerno. It is the Philippines’ government-owned and controlled body that administer savings program for Filipinos locally or overseas employed, voluntary and self-employed members, which offer from short-term loans to housing programs.
Membership and Eligibility
Filipinos employed both in local and overseas are mandated to be a Pag-IBIG member but accepts voluntary membership for self-employed individuals.
The minimum monthly contribution is Php200 while the maximum is Php2,950. Just like in SSS and PhilHealth, there is the employee and employer share contribution for this.
As an active member of Pag-IBIG, you are eligible to apply for any housing loans provided that:
You have at least 24 months or 2 years contributions paid. If not, you can pay the required amount in lump sum to be qualified for your loan application.
You must not be 65 or 70 years old upon the date of loan application.
You should have legal capacity to own a real estate property.
You satisfactory passed the background checking, employment verification, and credit standing conducted.
You should not have any type of loans which are in arrears or defaulted housing loan to Pag-IBIG. If yes, you should update the payment for your loans in arrears but when you do have defaulted housing loans whether you are the principal or co-borrower, you cannot be qualified for any housing loans.
Loan Purpose
The loan purpose should finance your purchase a residential lot or property not exceeding 1,000 square meters whether pre-owned, new, mortgaged, adjoining units; construction or completion of a residential unit; home improvement; or refinancing of an existing housing loan. Your residential property can either be a town house, row house, or condominium.
Housing Loan Programs
There are two (2) modes of application for housing loan namely the Developer-Assisted wherein the developer will assist you for the housing loan application while Retail you will have your personal housing loan application directly to Pag-IBIG.
While there are other two (2) types of housing loan programs: The Affordable Housing Program (up to Php750,000) and End-user Home Financing Program (up to Php6M).
Loan amount, terms, interest rates, and monthly amortization
You could avail housing loans up to six million, Php 6,000,000 and the maximum terms is thirty (3) years. It will still depend on your capacity to pay your age on the date of application.
Pag-IBIG interest rates varies from 3%-10%, depending on the loan amount, term, and housing loan program. The lowest monthly amortization is Php1,897 for minimum wage earners for Php450,000 loan at 3% for the first 5 years of 30 years term.
Loan Requirements
Pag-IBIG requirements are categorized into two (2) namely the general requirement and proof of income.
The general requirements are the Pag-IBIG Loan Application Forms, Approved Membership Status Verification Slip (MSVS), 2 valid government-issued IDs (passport for OFW), 1×1 ID photos, Notarized/ Consularized SPA form (if applicable), Birth Certificate (if single)/ Marriage Contract (if married), Proof of Billing/ Vicinity Sketch, Transfer Certificate of Title (TCT) or Condominium Certificate of Title (CCT) if applicable.
The proof of income for locally employed are Notarized and latest Cert. of Employment and Compensation (CEC), 1-3 months consecutive payslips, and Latest Income Tax Return (ITR)/ BIR Form 2316.
For Overseas Filipino Workers (OFW), you should have:
Employment Contract between employee and employer/ POEA standard contract
Certificate of Employment and Compensation (CEC),
ITR filed with host country/ government, and
Payslip
Additional documents may be required such as Valid OWWA membership Certificate, Overseas Certification, Passport with appropriate visa (working visa), Residence Card/ Permit, Bank Remittance Record, or Professional License issued by host country/ government.
For self-employed individuals, you should have:
Latest ITR
Audited Financial Statements, and
Official Receipt of tax payment from bank supported with DTI Registration and Mayor’s Permit/ Business Permit, Commission Vouchers, Bank Statement/ Passbook for the last 12 months, Copy of Lease Contract and Tax Declaration, Certified True Copy of Transport Franchise (if PUVs), Certificate of Engagement issued by owner of business, and other documents that would validate source of income.
Loan Process
After you have complied to all pertinent requirement, you will wait for Notice of Approval (NOA) then the release of loan proceed shall follow.
Also, you can have an online schedule appointment to submit your requirements at Pag-IBIG head office in Mandaluyong City.
Loan Payment
Thru the collecting partners of Pag-IBIG, paying will be much easier and convenient because you can pay in SM, 7/11 stores, Bayad Center, M Lhuillier, CashPinas Moneyment App (Dragonpay, Paypal, etc.), Metrobank, and Landbank via over-the-counter payments.
Certainly, Pag-IBIG makes Filipinos to achieve their dream house. To own your own home will be one your greatest achievement in life. You dream house is possible with the help of Pag-IBIG.
