How Pag-ibig helps you buy a house

It’s the time of the year many of our clients ask about financing for property. There is stigma attached, but compared to renting and especially if you can get it leased, it is a great way to buy. A great and safe way to finance your home is through Pag-ibig.

You see it as a mandatory deduction from your salary that annoys you on pay day, but Pag-ibig is important. It was set up in 1978 to give Filipinos the opportunity to buy housing safely, and promote savings.

Pag-ibig actually has a 6 step guide but it’s still painful to read so let’s break it down:

You can get a home loan if…

  1. You have paid 24 months of contributions
  2. You’re younger than 65
  3. You haven’t already taken out a home loan with Pag-ibig or failed to pay one back.

And that’s it!

How much you can borrow and how much that will cost depends on how much you make and the length of the loan. If you earn minimum wage then you can borrow up to P750,000 on minimal interest (4.5%-6.5%). If you earn more then you can borrow P6 Million and the interest rate is based on the your income and credit profile. You can pay back to loan over a period as long as 30 years.

Finally, here’s a simple version of the 6 step guide from Pag-ibig:

  1. Fill out the Application and Checklist
  2. Give those forms to the Pag-ibig office in the same area as the home you want with P1,000.
  3. Get the Notice of Approval/Letter of Guarantee, and sign the Loan Documents.
  4. Fulfill the requirements of the Notice of Approval
  5. Bring 2 Valid IDs and get the check! If salary deductions don’t cover the monthly cost then you’ll need to also bring 12 PDCs.
  6. Monthly payments start next month and that’s it!

Or Pag-ibig just launched online services, which allows you to easily apply online instead.

One Comment Add yours

  1. erwin borja says:

    Panu po kung intitled ako sa housing loan,pro need po ang pirma ng spouse kc my form po dun n spouse sig..kya lng po mtagal n kming hwalay ng asawa ko..hndi nga lng legally..


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