Sunday, October 3, 2010

Pag-IBIG Housing Loan: What you need to know (Part 1)

DRIVEN Marketing Group Inc. recognizes that most of the Filipino buyers are members of the Home Development and Mutual Fund (HDMF) and this is the reason why we carry many projects that are accredited to Pag-IBIG Fund for these people to benefit from this compulsory membership for regular employees.

Most Filipinos are employees and so we believe you all need to know at least the basics of this so called Pag-IBIG membership.

Pag-IBIG Housing Loan 101

One of the main concerns of Pag-IBIG Members is getting a Housing Loan. And why not? That is one of the privileges they can get as members of the Fund Company.
This article will address a number of those basic concerns about Housing Loan.

Who can avail of Pag-IBIG Housing Loan?

Pag-IBIG Loans are allowed only to Pag-IBIG Members who are at least two years already and who have contributed at least 24 months. Of course, there are other requirements, before the loan is finally granted, but the point is Loans from Pag-IBIG is only open to its members.

How much can I loan from Pag-IBIG?

The maximum housing loan amount that can be granted to any member is only PhP 3,000,000. So that means if the property you are considering is priced more than PhP 3M, you need to come up with some form of up-front payment (or equity) to settle the price difference virus the loan amount. Or, you may opt for another financial institution. Please refer to the Mortgage Loan Fundamentals.

What type of Real Estate or Real Estate Projects can be financed with Pag-IBIG?

Pag-IBIG Housing Loans can be used to financed any of the following:
  • Lot-Only Property — It could be a raw land or parcel of land in a subdivision development.
  • House Construction or Improvement — The residential unit should be constructed on a lot owned by the member.
  • House and Lot Purchase — New or old house with lot. If you are buying from a developer, please check with your broker/agent if Pag-IBIG can be used to finance the property you wanted to buy.
  • Refinancing Of An Existing Mortgage Loan
Always bear in mind that you can only get a maximum of PhP 3M loan and you are limited to residential projects only.

How much is the interest rate of Pag-IBIG Housing Loan?

Good question! Most buyers of real estate in the Philippines have no idea of the interest rate that comes with the loan. As a buyer, you should make it a top priority to know about the interest rate and be able to compare it to competing lenders.
(Interest rates are also discussed in Mortgage Fundamentals article.)
Luckily for Pag-IBIG Members, the interest rates are among the lowest in the market! Depending on the amount of loan, the interest runs from 6% to 11.5% per annum.
Stay tuned for more on Pag-IBIG Housing Loan 101 

DRIVEN Marketing Group is founded by Mr. Lubar delos Reyes, Mr. DJ Dimaliuat, Mr. Rex Lomangaya, Mr. Gary De Leon, and Mr. Van Amada


  1. Thanks for the very interesting post. PAGIBIG housing loan has a lower interest in PAGIBIG members.

  2. Oh. that was great. PAGIBIG members has a lower interest rate. And hosuing loan is only for 3M. Good.

  3. Hi im an ofw and a inactive member of pagibig for 7 yrs. I will continue to pay my monthly contribution and i have 24 months contribution before when i was working in Phils., when can i avail a housing loan and up to how much is my loanable amount?

  4. If you pay your latest 24 month contribution today, you will just wait for 12 months as a seasoning period before they can grant you a loan.

    For the loanable amount, it will be based on your net disposable income (NDI).

  5. Housing loan is a pretty good idea for a loan business and if you're dreaming a house this is a great opportunity i seen your blog very cool.Thanks for sharing.

  6. what if i just contributed less than 24 month, will i be able to avail the PAG-IBIG housing loan?

    1. Hi, you just need to complete the remaining months for you to have a total of 24 month contribution.

      If what you are buying is still in pre-selling stage, you can reserve a unit then pay off your Pag-IBIG Contribution while paying for the downpayment, when you have already paid 24 months contribution, you will be eligible to borrow funds thru Pag-IBIG Housing Loan



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