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What is Pag-IBIG? 

The birth of the Home Development Mutual Fund (HDMF), more popularly known as the Pag-IBIG Fund, was an answer to the need for a national savings program and an affordable shelter financing for the Filipino worker.

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The most effective method to apply housing loan in Pag-IBIG Fund or Home Development Mutual Fund? What amount would it be advisable for you to pay and what amount are the present financing costs. I'm going to share about the procedure and ventures in use of housing loan through Pag-IBIG Fund. 

One of the great advantages of being a Pag-IBIG part is the Housing Loan. Everybody needs their own home at some point or another. Pag-IBIG's financing costs for this sort of advance are lower and less expensive contrasted with other housing loan and financing alternatives offered more often than not by banks. I've summed up the reasons for what reason should you apply in Pag-IBIG than some other housing loan creditor.

Why should you go for Pagibig Housing Loan?

  • Interest rate in Pag-IBIG is lower and cheaper. Right now it starts with 5.375% per anum. Banks usually offer 10% and higher.
  • Re-pricing of interest rates is lower too. It won’t go up or above 2% in case of inflation and other economic factors.
  • It is easy and simple to apply provided you are eligible
  • Approval process is fast and quick

Pagibig Housing Loan Eligibility:

  • Must be a Pagibig active member and have contributed of at least 24 months of contributions. 

NOTE that you already had the 24 months of contributions but you’re no longer an active member? Just continue the contribution and apply. 

For a new member? Pay lump sum payment to complete the required 24 months and submit the Pagibig Fund Receipt upon filing of loan application.

  • Attend a seminar about the application of housing loan.

Pagibig Housing Loan Application Requirements

1. Housing Loan Application Form

2. Membership Status Verification Slip  –  and attach photocopy of your 2 valid IDs

3. Proof of Income Documents: See below for details

For Locally Employed, any of the following:

  • Notarized Certificate of Employment and Compensation (Employer’s Format) and for government employees 1 month payslip, within 3 months prior to the date of loan application
  • Latest ITR for the year immediately preceding the date of loan application – attach W2 form, stamped received by the BIR/Certificate of Tax Withheld (BIR Form 2316)

For Self-employed / Other Sources of Income, any of the following:

  • ITR, Audited Financial Statements and Official Receipt of Tax Payment from bank supported with DTI Registration and Mayor’s Permit/Business Permit
  • Commission Vouchers reflecting the issuer’s name and contact details (for the last 12 months)
  • Bank Statements or passbook for the last 12 months (in case income is sourced or derived from foreign remittances, pensions.)
  • Copy of Lease of Contract and Tax Declaration (if income is derived from rental payments)
  • Certified True Copy of Transport Franchise issued by appropriate government agency (LGU for tricycles, LTFRB for other Public Utility Vehicle (PUVs)
  • Certificate of engagement issued by owner of business
  • Other document that would validate source of income or funds

For OFWs, any of the following:

  • Employment Contract (with English translation if in foreign language)
  • Original Employer’s Certificate of Income (with English translation if in foreign language). If document submitted is photocopy, it shall be duly certified/initiated by Pag-IBIG Fund Information Officer assigned in the country where the member works.
  • Other Proofs of Income, whether original or photocopy, shall be duly certified/initiated by Pag-IBIG Fund information officer assigned in the country where the member works.

4. Photocopy of 1 primary valid ID of Principal Borrower and Spouse, Co-borrower and Spouse, Seller and Spouse and Developer’s authorized representative and Attorney-in-Fact, if applicable.

5. Authorization to Conduct Credit/Background Investigation

6. For OFWs, Special Power of Attorney notarized prior to date of departure or duly certified and authenticated by the Philippines Embassy or Consulate in the country where the member is staying, if abroad. If SPA is without the Red Ribbon of Consulate Office, the SPA must have duly stamped notarial seal.

7. Health Insurance Coverage

  •  Health Statement Form (Medical Questionnaire)

OFW members over 60 years old

Loans over 2 Million pesos to 6 Million pesos and for borrowers aged up to 60 years old

  • Health Statement Form (Medical Questionnaire) and Full Medical Examination

8. Marriage Contract (for all married borrowers, co-borrower/s, spouse, family member/s included on the computation of aggregate income)

9. Birth Certificate of or any proof of relationship, if with co-borrower/s or family member/s included on the computation of aggregate income.

10 Certified True Copy of Transfer Certificate of Title (TCT) – from Registry of Deeds

12. Photocopy of Updated Tax Declaration and Updated Real Estate Tax Receipt – from Municipal’s Assessor’s Office

13. Location Plan and Vicinity Map

14. Approved letter request to re-avail of a Pag-IBIG housing loan.

Pagibig Housing Loan Interest Rates

  • 1 year 5.375%
  • 3 years 6.375%
  • 5 years 7.270%
  • 10 years 8.035%
  • 15 years 8.585%
  • 20 years 8.800%
  • 25 years 9.050%
  • 30 years 10.000%

Notes:

  1. Rates are effective as of February 14, 2018 and may change without prior notice.
  2. Fixed pricing period is how long you want to lock-in your rates.
  3. This calculator is provided for reference only. Values, amounts or figures indicated are all approximate or estimated only.
  4. Computations are based on the amounts you declared and actual loanable amount may vary depending on Pag-IBIG Fund’s validation and evaluation.
  5. Terms and conditions apply.
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