1What is the Pag-IBIG Affordable Housing Loan Program?

The Pag-IBIG Fund Affordable Housing Loan is designed for minimum-wage and low-income members who earn up to P15,000 a month within the National Capital Region (NCR) and earn up to P12,000 per month outside the NCR. Under the loan program, Pag-IBIG Fund offers a subsidized rate of of 3% per annum for home loans up to P580,000 in socialized subdivision projects and special low rates for home loans of up to P750,000 for socialized condominium projects.

2What can Minimum-Wage Earners do with a Pag-IBIG Affordable Housing Loan?

Minimum-wage earners may use the Pag-IBIG Affordable Housing Loan to finance any one or a combination of the following:

  • Purchase of a fully developed residential lot or adjoining residential lots not exceeding 1,000 square meters;
  • Purchase of a residential house and lot, townhouse or condominium unit;
    1. Pre-owned or brand-new units
    2. A property mortgaged with Pag-IBIG Fund; or
    3. Adjoining house and lots / townhouses / row houses / condominium units.
  • Construction or completion of a residential unit on a residential lot owned by the borrower or a relative of the borrower;
  • Home improvement; and
  • Refinancing of an existing housing loan, provided, that the borrower must be regularly paying the amortizations of the said loan without any payment made beyond thirty (30) days past due for the last six (6) months from the date of application.
3How does a minimum-wage earner qualify for a Pag-IBIG Affordable Housing Loan?

One must possess the following to qualify for the loan:

  • Monthly income which falls under the income levels covered by the loan program;
  • At least twenty-four (24) monthly membership savings (a lump sum payment of the required monthly membership savings is allowed);
  • Age of not more than sixty-five (65) years at the date of application and not more than seventy (70) years at maturity of the loan;
  • Legal capacity to encumber real property;
  • Ability to pass satisfactory background / credit and employment / business checks of Pag-IBIG Fund;
  • No outstanding Pag-IBIG Short-Term Loan (STL) in arrears at the time of the loan application;
  • No Pag-IBIG Housing Loan that was foreclosed, cancelled, bought back due to default, or subjected to dacion en pago.
  • If with an existing Pag-IBIG Housing Loan as a principal buyer / borrower or co-buyer / co-borrower, the account must be updated.
4How much can one borrow under the Pag-IBIG Affordable Housing Loan?

One can borrow up to Seven Hundred Fifty Thousand Pesos (P750,000.00). The amount one may borrow, however, shall be based on the lowest of the following:

  • Actual need;
  • Desired loan amount;
  • Loanable amount based on your capacity to pay; and,
  • Loan-to-Appraised Value ratio
5What are the interest rates?

Qualified members shall be entitled to special subsidized interest rates following the table below. The 3% interest rate can be enjoyed for the first five (5) years of the loan term while the 6.5% rate can be enjoyed during the first ten (10) years of the loan term.

Details Interest Rate and Gross Monthly Income
Interest Rate* 3.0% 6.5%
Income Cluster 1 (NCR) Up to P15,000 Up to P17,500
Income Cluster 2 (Regions) Up to P12,000 Up to P14,000
Loan Amount Up to the Socialized Housing Loan Ceiling Up to P750,000
6How can one apply for a Pag-IBIG Affordable Housing Loan?

A qualified member can easily apply for a Pag-IBIG Housing Loan by submitting a duly accomplished form and its requirements at any Pag-IBIG Fund branch, or through the accredited partner-developer from whom the member shall purchase a property.

Qualified members may also take their first step in applying for a loan by visiting Virtual Pag-IBIG (www.pagibigfundservices.com/virtualpagibig), clicking the Apply for or Manage Loans tab and choosing Apply for a Housing Loan.

7How will one pay for a Pag-IBIG Affordable Housing Loan?

Borrowers may pay their Pag-IBIG Affordable Housing Loan in a number of convenient ways, which include:

  • A collection servicing arrangement with the borrower’s employer (if employed), who will then remit the monthly payments to Pag-IBIG Fund;
  • Issuance of post-dated checks;
  • Auto-Debit Arrangement (ADA) with a Pag-IBIG Fund partner-bank;

Borrowers may also pay their monthly amortizations via Virtual Pag-IBIG, at any Pag-IBIG Fund branch, or through any of our accredited collecting partners’ outlets or their online payment channels.

8What is the loan repayment term?

The maximum payment period for the loan is thirty (30) years, but should not exceed the difference between age seventy (70) and the present age of the principal borrower.

9Does the Pag-IBIG Affordable Housing Loan carry insurance?

Yes. The Pag-IBIG Affordable Housing Loan shall be covered by a Mortgage Redemption Insurance (MRI) or a Sales Redemption Insurance (SRI), whichever is applicable, as well as a Fire and Allied Perils Insurance (FAPI).

10Where can I read more about the Pag-IBIG Affordable Housing Loan Program?

To know more about the Pag-IBIG Affordable Housing Loan Program, you may download Pag-IBIG Fund Circular No. 403, Modified Guidelines on the Pag-IBIG Fund Affordable Housing Program by clicking here