Money Matters

Be A Homeowner Now! All You Need to Know About Pag-IBIG Housing Loans

You can get your dream home at an affordable cost

Photography: Shutterstock

Owning a home is a milestone that many Filipinos hope to achieve, but the high costs of building or buying a home can be intimidating. Thankfully, there is a government agency offering a service that helps you get closer to your dream home: the Home Development Mutual Fund (HDMF) and the Pag-IBIG housing loans.

READ: Ask the Pros: What Taxes Do I Need to Pay if I Want to Buy or Sell Property?

Types of Pag-IBIG Housing Loans

The HDMF, also known as the Pag-IBIG Fund, is the country’s national savings program helping Filipino workers become homeowners. The agency offers different housing loans depending on members’ needs and their ability to pay.

Affordable Housing Loan for Minimum Wage Earners

Targeted at minimum-wage and low-income owners, this program lets you own a home by offering affordable monthly payments and terms of up to 30 years. You may borrow up to Php750,000 and use it to purchase a residential lot, a residential house and lot, a townhouse, or a condominium unit. It may also be used for home improvements, house construction, or refinancing of an existing housing loan.


pag-ibig-housing loans

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Pag-IBIG Home Equity Appreciation Loan

If you are an existing Housing Loan borrower and have maintained a good standing by paying your monthly amortizations on time, then you are eligible for the Home Equity Appreciation Loan (HEAL). This program lets you apply for a new loan based on the net value of your mortgaged property with Pag-IBIG, which you can then use for other essential needs. HEAL borrowers are entitled to loans at very low-interest rates and payable for up to 30 years.


Pag-IBIG Housing Loan

With this loan, you can borrow up to Php6 million with low-interest rates. You may use it to purchase a residential lot, a residential house and lot, a townhouse, or a condominium unit. Like the affordable housing loan, you may also apply for a loan for home improvements, house construction, or refinancing of an existing house loan.

What is the minimum salary for a Pag-IBIG housing loan?

Members earning up to Php15,000 a month within the National Capital Region (NCR) and up to Php12,000 outside the NCR fall within the scope of the Affordable Housing Loan. Members who are earning more than these amounts may be advised to apply for a Pag-IBIG Housing Loan instead.

How to qualify for a Pag-IBIG housing loan

Wondering if you can avail any of the housing loans? Check if you meet the following requirements:


  • Must be an active Pag-IBIG Fund member and have been contributing for at least 24 months (2 years). 
  • Not more than 65 years old at the date of loan application and not more than 70 years old at the date of loan maturity
  • Have the legal capacity to acquire and encumber real property
  • Be able to pass satisfactory background, credit and employment, and business checks conducted by the Pag-IBIG Fund
  • Has no existing Pag-IBIG Housing Loan, whether foreclosed, canceled, bought back, or voluntarily surrendered
  • No outstanding Pag-IBIG Short-Term Loan (STL) that is behind payment at the time of the loan application
  • If with an existing Pag-IBIG Housing Loan as a principal buyer/borrower, or co-buyer/co-borrower, the member’s account must be updated


If you have made less than the required number of contributions, you may be allowed to make a lump sum payment (based on the mandatory contribution rates) to meet the requirement at the time of the loan application, provided that you have been a member for at least 12 months.

How to apply for a Pag-IBIG Housing Loan

There are six steps to accomplish if you want to apply for a housing loan, according to the Pag-IBIG fund website. Expect to shell out a non-refundable processing fee of Php1,000, and an appraisal fee of Php2,000.

Step One: Complete the requirements.

You will need the following documents for your loan application:

  1. Filled out the housing loan application
  2. Vicinity map of the property you are planning to purchase
  3. Proof of income
  4. Updated Tax Declaration and Tax Receipt
  5. Valid IDs and photocopies of the IDs for the principal borrower and spouse, co-borrower and spouse, seller and spouse, and developer’s authorized representative and attorney-in-fact, if applicable
  6. Certified True Copy of Title, contract to sell, or similar agreement between the buyer and seller
  7. Additional requirements based on loan purpose


how to apply pag-ibig housing loans

Step Two: Submit your Pag-IBIG Housing Loan Application

You may submit the application form and initial requirements online via Virtual Pag-IBIG. Once processed, you may then submit your application form and the complete set of requirements at any Pag-IBIG Housing Business Center or Pag-IBIG Fund branch near you.


Step Three: Receive the Notice of Approval (NOA) and Letter of Guarantee (LOG)

Should the application be approved, expect a notification from Pag-IBIG with advice on where to claim your NOA and LOG.

Step Four: Complete the requirements indicated in your Notice of Approval

You must complete the requirements listed in your NOA within 90 calendar days. This includes, among others, the transfer of title and annotation of the mortgage.

Step Five: Receive your Pag-IBIG Housing Loan proceeds

Once you have submitted post-approval requirements, you will receive the proceeds of your loan within 10 working days. You will get a notification from Pag-IBIG on how the proceeds will be released.

applying for pag-ibig housing loans


Step Six: Start paying your Pag-IBIG Housing Loan

You are required to start paying your Pag-IBIG Housing Loan exactly one month after its release date. Remember to use your permanent Housing Loan Account Number when paying. You may pay your dues through the following options:

  • via Virtual Pag-IBIG or the agency’s accredited collecting partners’ outlets and their online payment facilities
  • A collection servicing agreement with your employer
  • Issuance of post-dated checks
  • Auto-debit arrangement with a Pag-IBIG Fund partner-bank
  • Any Pag-IBIG Fund branch near you


READ: Ask the Pros: How Do You Transfer a Land Title in the Philippines?

If you’ve been wishing for a house that you can call your own, don’t be afraid to take the next step. Compared to banks, the Pag-IBIG housing loan offers favorable payment terms and competitive interest rates. Plus it is easier to get your application approved compared to banks. Who knows, you may be moving into your dream property sooner than you think!


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