(2018) UPDATED: How to Apply for PAG-IBIG Housing Loan
Do you want to get a PAG-IBIG housing loan?
Here’s everything you need to know about the PAG-IBIG housing loan in the Philippines, from the list of documents you must submit to the application process that you need to undergo.
The Home Development Mutual Fund, more commonly known as PAG-IBIG, has been one of the usual options of Filipinos when looking for an affordable home loan.
Good news for members: PAG-IBIG has recently simplified the application steps and reduced the application requirements to make it easier for you to get a PAG-IBIG home loan!
Uses of a PAG-IBIG Housing Loan
Not everyone knows it, but Pag-IBIG members may get a housing loan for any of these instances:
- To buy a brand-new house and lot or other newly constructed property;
- To purchase an existing residential house and lot, townhouse, or condominium unit;
- To buy a fully developed residential lot or adjoining lots not exceeding 1,000 square meters;
- To acquire a property currently mortgaged with PagIBIG;
- To buy a foreclosed property now acquired by PagIBIG;
- To spend on home improvements or to construct a residential unit on a lot owned by the member;
- To transfer an existing housing loan from another bank or financial institution (i.e., to refinance an existing housing loan)
Who are eligible to apply for a Pag-IBIG housing loan?
Filipinos who satisfy the following requirements may avail of a Pag-IBIG housing loan:
- Must have remitted 24 monthly Pag IBIG contributions. New members or those who have not paid the 24 monthly contributions may pay total contributions in lump sum;
- Has no outstanding Pag-IBIG housing loan;
- Has no outstanding multi-purpose loan in arrears.
What are the Application Requirements?
Here are the documents you need to prepare and submit to avail of a PAG IBIG Housing Loan.
I. Requirements when submitting a Loan Application
- Pag IBIG Housing Loan Application (you may get this from PAG IBIG);
- ID photo of borrower and co-borrower (if applicable), to be attached to the application form;
- Photocopy of one (1) valid ID (back-to-back) of Principal Borrower and Spouse, Co-Borrower and Spouse, Seller and Spouse and Developer’s Authorized Representative and Attorney-In-Fact, if applicable;
- Certified True Copy of Transfer Certificate of Title (TCT) of the property. For Condo Units, present TCT of the land and Certified True Copy of the Condominium Certificate of Title (CCT);
- Latest Tax Declaration of the property;
- Photocopy of latest receipt for Real Estate Tax (Amilyar);
- Contract-to-Sell or similar agreement between the buyer and seller;
- Vicinity Map/Sketch of the Property
- Proof of Income of the borrower (see more details below)
II. Proof of Income of the Borrower
A. If you are employed in the Philippines, any of the following may be submitted as Proof of Income:
- Notarized Certificate of Employment and Compensation (CEC), indicating the gross monthly income and monthly allowances or monthly monetary benefits received by the employee;
- Latest Income Tax Return (ITR) for the year immediately preceding the date of loan application, with attached BIR Form No. 2316, stamped received by the BIR;
- Certified One (1) Month Payslip, within the last three (3) months prior to date of loan application
For government employees, the Certified One (1) Month Payslip within the last three (3) months prior to date of loan application, must be submitted together with CEC or ITR.
B. If you are self-employed in the Philippines, any of the following documents are accepted as Proof of Income:
- Income Tax Return (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 from foreign remittances, pensions, etc.);
- Copy of Lease 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 PUVs);
- Certificate of Engagement issued by owner of business;
- Other document that would validate source of income
C. If you are an Overseas Filipino Worker (OFW), you must submit any of the following Proof of Income:
- Employment Contract between the employee and employer or POEA Standard Contract;
- Certificate of Employment and Compensation (CEC) written on the Employer/Company’s official letterhead or CEC signed by employer (for household staff and similarly situated employees) supported by a photocopy of the employer’s ID or passport;
- Income Tax Return filed with Host Country/Government
If any of the above documents are in foreign language/s, English translation of the document is required.
III. Application Processing Fee
PagIBIG housing loan applicants also need to pay the following processing fee:
- P1,000 upon filing and submission of the housing loan application with required documents. Take note, this amount is non-refundable.
- P2,000 appraisal fee, also to be paid upon filing of loan application. Again, this payment is non-refundable.
- P2,000 to be deducted from the loan proceeds, once the loan is approved and ready for release.
IV. Requirements upon Loan Approval and Prior to Release of Loan Amount
- TCT/CCT in the name of the borrower/co-borrower/s (if applicable) with proper mortgage annotation in favor of Pag-IBIG Fund (Owner’s Duplicate Copy);
- TCT/CCT in the name of the borrower/co-borrower/s (if applicable) (Certified True Copy) with proper mortgage annotation in favor of Pag-IBIG Fund (RD’s copy);
- Updated Tax Declaration (House and Lot) and Updated Real Estate Tax Receipt (Photocopy) in the name of the borrower/co-borrower/s, if applicable;
- Loan Mortgage Documents, including:
- a. Loan and Mortgage Agreement duly registered with Registry of Deeds with original RD stamp;
- b. Deed of Absolute Sale duly registered with Registry of Deeds with original RD stamp;
- c. Duly accomplished/notarized Promissory Note; and
- d. Disclosure Statement on Loan Transaction.
V. Additional Requirements (only if applicable)
A. If you are an OFW, you must also submit:
- Special Power of Attorney (SPA) notarized prior to date of departure. For an OFW member abroad, an SPA notarized by a Philippine Consular Officer, or SPA notarized by a local notary (of the country where the member is working) but duly authenticated by the Philippine Consulate.
- If requested by PagIBIG, you must also submit the following documents:
- Payslip indicating income received and period covered
- Valid OWWA Membership Certificate
- Overseas Employment Certificate
- Passport with appropriate visa (Working Visa)
- Residence card/permit (permit to stay indicating work as the purpose)
- Bank remittance record
- Professional License issued by Host Country/Government
Again, take note. If the documents are written in a foreign language, an English translation of the document is required to be submitted.
B. For OFW borrowers over 60 years old:
- Health Statement Form (Medical Questionnaire); and
- Copy of the result of medical examination conducted prior to assignment overseas as required by the employment agency
C. For borrowers over 60 years old or borrowers up to 60 years old (if loan amount is over between P2 million and P6 million):
- Health Statement Form (Medical Questionnaire)
D. For properties purchased from a Developer or Corporation or Association:
- License to Sell (if property is being sold by a Developer);
- Secretary’s Certificate on the Authorized Signatory of the Developer or Corporation or Association;
- One (1) valid ID of the Corporate Secretary and Authorized Signatory of the Developer/Corporation/ Association (Photocopy, back-to-back)
If you have questions or clarification, visit or contact a Pag-IBIG office near you. Hope you can own a property soon!
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