PAG-IBIG Members Guide when purchasing a house in the Philippines

Having their own house is the ultimate dream of every Filipino family. But the truth is, most of those who plan to purchase a house do not have a ready cash to pay for it, or even if they have, they would prefer to apply for a loan to complete it.

Saving for your first home purchase may take for a couple of years, and by the time that you are ready for it, the house that you wanted must have long been sold. Or the value of your money can no longer purchase the same quality house you'd always wanted. You might want to consider applying for a housing loan to realize your dream.

When we hear of a housing loan, Home Development Mutual Fund or commonly known as PAG IBIG housing loan fund comes first to our mind. We definitely will not miss it because a small amount from our salary is deducted to pay for our monthly contribution. Providing loan to finance our houses is one of the services provided by the institution.

If you are shopping around for the best house to buy, you might want to shop around for housing loan provided by banks too because you might find a better deal. Many of us are a bit intimidated to inquire from banks, we may be thinking of higher interest rate, stricter requirements, or lesser chance that the loan may be approved.

Some home purchasers prefer bank services when it comes to housing loan for a reason or two. And some would prefer PAG IBIG housing loan. Let us compare what each offers on every factor we need to consider arriving at a sound decision.


  • Must be a member, and must have 24 monthly contributions to qualify. Members can pay 24 months in lump sum
  • Not more than 65years old
  • No existing multi-purpose loan in arrears
  • No other PAG IBIG housing loan that had been foreclosed, cancelled or bought back

Loan Purposes

  • Can be used to purchase a lot not exceeding 1,000 sq. meters.
  • Can be used to purchase town house or condominium.
  • Can be used to complete construction.
  • Re-financing.

How Much You Can Borrow

  • Maximum of Php 6,000,000.00
  • Subject to other qualifiers like the actual need of the member, capacity to pay.

Loan Appraisal Value Ratio

  • Loans not lower than Php 400,000, 100%
  • Loans more than Php 400,000.00, 90%

Interest Rates

  • 6.98% for the first three years, subject to re-pricing up to 11.37%

Repayment Process

  • Maximum of 30 years


  • Pag Ibig Housing Loan Application Form
  • Membership Status Verification Slip
  • TCT/CCT in the name of the borrower
  • Photocopy of the New Tax Declaration
  • Collection Servicing Agreement or Post dated checks
  • Proof of billing address
  • Notarized Loan and Mortgage Agreement
  • Notarized Promissory Note
  • Disclosure Statement on Loan Transaction
  • Occupancy Permit (if applicable)
  • Building Plans (if applicable)
  • Deed of Absolute Sale (if applicable)

Processing Time

  • 15 business days