How to Invest in Pag-IBIG Housing Bonds?

James Ryan Jonas

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
James Ryan Jonas teaches business management, investments, and entrepreneurship at the University of the Philippines (UP). He is also the Executive Director of UP Provident Fund Inc., managing and investing P3.2 Billion ($56.4 Million) worth of retirement funds on behalf of thousands of UP employees.