Features of the Pag-IBIG Housing Loan Offer & the Application
PAG-IBIG HOUSING LOAN – Members of the Pag-IBIG Fund may turn to the government entity for its Housing Loan offer.
In the Philippines, undeniably, the most popular among the housing loan offers is the Housing Loan offer of the Pag-IBIG Fund. It is a state-run social insurance entity with millions of members composed of not only Filipino across the nation but as well as overseas Filipino workers (OFWs).
The Fund is operating in the Philippines for decades now since 1978. It has helped countless members in achieving residential properties in an affordable way which is its primary purpose. It has also helped its members in addressing their short-term financial needs as well as in times of calamities.
Among the loans offered by the Fund, the most popular is the Pag-IBIG Housing Loan. It is open for several purposes such as the following:
- purchase (plus cost of transfer) of residential lot or adjoining residential lots (max 1,000 sq.m.)
- purchase (plus cost of transfer) of residential house & lot, townhouse or condominium unit (old or brand new, property mortgaged w/ the Fund, adjoining houses/units) inclusive of a parking slot
- house construction
- home improvement / renovation
- refinancing of existing home loan
- combined loan purposes
Under the loan offer, a member may qualify to avail as much as Php 6 million subject to the approval of the Fund. The government entity allows combine purposes like the financing of a vacant lot purchase and the house construction which many of its members have availed.
The Fund allows a maximum repayment term of 30 years, thus, there is really an option for light monthly installments. The interest rate depends on the fixing period chosen by the member and here’s a guide:
| Rates per Repricing Period | |
| 1-Yr* Fixing | 5.750% |
| 3-Yr Fixing | 6.250% |
| 5-Yr Fixing | 6.500% |
| 10-Yr Fixing | 7.125% |
| 15-Yr Fixing | 7.750% |
| 20-Yr Fixing | 8.500% |
| 25-Yr Fixing | 9.125% |
| 30-Yr Fixing | 9.750% |
- active member with at least 24 monthly savings
- of legal age and not more than 65 years old at the date of the loan application and not more than 70 years old at the time of loan maturity
- has legal capacity to acquire and encumber real property
- has no Pag-IBIG Housing Loan foreclosed, bought back, cancelled, or voluntarily surrendered
According to the Fund, there is an additional qualifying requirement for members who have existing Housing Loan account or Short Term Loan (STL). In case there is, the payments for the existing loan must be updated.
The loan offer is open for locally-employed and self-employed individuals as well as overseas Filipino workers. There are varying requirements.
Aside from the Pag-IBIG offer, another popular home loan offer in the country is the BDO Home Loan. It is also open for several purposes and bears excellent features for your benefits.
