How to Invest in Pag-IBIG Housing Bonds?



Were you able to invest in the Philippines’ Retail Treasury Bond (RTB) offering?

The RTB issuance has been cut short because the government has already raised enough funds. If you were able to invest, good for you. You are now guaranteed a 6.80% net return (if you invested in the 3-year bond) of 7.20% (if you invested in the 5-year bond).

If you were not able to join the offering, don’t fret. There’s another guaranteed, government-backed security although it pays less than the RTB’s.

What are Pag-IBIG Housing Bonds?

Pag-IBIG Housing Bonds are bonds issued by the government agency Home Development Mutual Fund (HDMF) to finance its housing loan program.

The Bonds have a term of 5 years and 1 day. Anyone can invest with a minimum of Php10,000. Other denominations are Php100,000, Php500,000, Php1,000,000 and Php10,000,000. There is no limit as to the amount of Bonds an investor can purchase.

What is the interest rate on the bonds?

The Bonds pay a fixed interest rate of 5% per annum. The interest payments are exempt from the 20% withholding tax.

Here’s a sample computation:

  • Investment Amount: Php10,000
  • Coupon rate: 5% fixed per annum
  • Gross Semiannual Interest: Php250.00 (Php10,000 x 5.00% x 1/2)
  • Tax: None
  • Net Interest to be Received: Php250.00 every 6 months

Earnings are automatically credited every 6 months to the savings account of the bondholder with the Development Bank of the Philippines (DBP) or Land Bank of the Philippines (LBP).

Can I sell the bonds prior to maturity?

Yes. Since the Bonds are negotiable, you can sell these to other interested investors through DBP or LBP even before maturity.

I heard I can join a raffle if I invested in the Bonds?

Yes, for every Php10,000 Bond held, an eligible bondholder is entitled to one raffle number. Every year, a minimum of two (2) units of House and Lot packages or Lots worth Php1 Million each will be raffled off.

How to invest in PAGIBIG Housing Bonds?

To invest, you must have:

  • Duly accomplished Application to Purchase Pag-IBIG Housing Bond
  • TIN and 2 valid IDs ( bearing photo and signature)
  • Savings account with either DBP or LBP
  • Manager’s check

To make your investment, visit or contact the Treasury Department of Pag-IBIG:

  • Pag-IBIG Fund Corporate Headquarters
  • Treasury Department
  • 4/F Atrium Building, Makati Avenue, Makati City
  • Tel.: (632) 811-4340 / 811-4260 / 811-4380

About the Author

PSEi support seen at 6,200 and 6,000 amid weaker Peso

In a not-so-surprising move, the U.S. Federal Reserve (Fed) yesterday raised interest rates by 75 basis points (bps) or 0.75% in a bid to tame rising inflation in the United States. This was the third consecutive 0.75% rate hike by the Fed, which brings the federal funds rate, the central bank’s benchmark interest rate, to ... Read more

Official SWIFT Code of BDO, BPI, Metrobank, Philippine banks

When sending cash remittances or wire transfer to a bank account in the Philippines (such as BDO, BPI, Metrobank, Landbank, DBP, etc.), you’ll surely need the SWIFT Code of the bank. Look no further because you can find all the SWIFT Codes you need in this list! Make sure you’re using the right bank code ... Read more
blank

How to Waive your Credit Card Annual Fee (BDO, BPI, Metrobank, RCBC, Citibank, UnionBank)

Without a doubt, one of the most annoying fees that credit cardholders have to pay is the annual fee. Majority of cardholders are familiar with this fee and majority of us likely pay this grudgingly year after year after year. In the case of my credit card with BPI (Bank of the Philippine Islands), I’m ... Read more
blank

Why Filipinos do not become business owners or entrepreneurs

For a majority of Filipinos, entrepreneurship does not seem to be a typical, expected path. This is not surprising, considering that in school, students are primarily taught to become employees after graduation. Students train for years to become staff workers, reporting to a supervisor, and just waiting to receive their wages or salaries every month. ... Read more
blank

My experience investing in Mutual Funds in the Philippines

I started investing in mutual funds when I was 22 years old. As an Overseas Filipino Worker (OFW) then, I was fortunate to be able to save some money at that young age because of my work abroad. One time while I was on vacation in the Philippines, I saw a large billboard in EDSA ... Read more
blank

Income Tax Tables in the Philippines (2022)

The Philippines’ new tax reform bill, known as TRAIN or Tax Reform for Acceleration and Inclusion, was signed into law on December 19, 2017 and its implementation began on January 1, 2018. What are the new income tax rates under the TRAIN law? How will TRAIN affect income taxes of individuals and corporations? How is the ... Read more
blank

PSE Stocks Performance under each Philippine President (1987-2021)

Did you know that Philippine stocks were able to achieve an astounding growth of 800% in a span of 30 years? From 1987 until 2018, the Philippine Stock Exchange index (PSEi) rose from 1,000 points to a peak of 9,000 points — generating a return of 800% over 30 years. (The PSEi is an index ... Read more
blank

SSL 2022: Salary Increases for Teachers, Nurses, Gov’t Employees

Good news to all government employees! There’s a new round of salary increases beginning January 1, 2022! Millions of employees of the Philippine government — including public school teachers, nurses and staff of government hospitals, and workers in local and national government agencies, etc. — will be getting an automatic salary adjustment this 2022 under ... Read more
blank

PSE Trading Hours in 2022: What time open, when closed?

Before you take the plunge into stock trading and investing, make sure you understand what stocks are and how the Philippine Stock Exchange (PSE) operates. Unlike other investments that are relatively safe, stock trading is risky and loss of money is a possibility. So before you deep dive into the exciting world of stock trading, ... Read more

Price Floor and Price Ceiling of PSE Stocks

Trading bands in the PSE come in two forms: Price Ceiling, or the upper price limit, and Price Floor, or the lower price limit.

3 thoughts on “How to Invest in Pag-IBIG Housing Bonds?”

  1. im a overseas pag ibig member before. i save close to 10K to bcome a instant member since 2004. i was suppose to loan a a ouse and lot in cavite unfortunately nag-back out ako kasi di na ko nkabalik sa abroad.my question can we consider my savings to pgibig as a investment bond? can i still get my money wit interest? salamat sa mga sasagot

    Reply
  2. hey guys any update on this.. this was posted way back 2011.. i am from cebu.. has anybody invested in this pag ibig housing bonds? if yes, how and where? nobody seems to know this when i inquired at pag ibig yesterday.. teehdurt@gmail.com

    Reply

Leave a Comment