How To

How to Apply Pag ibig Housing Loan?

Pag-IBIG Fund, or the Home Development Mutual Fund, is a government agency that provides affordable housing loans to its members. The agency is dedicated to helping Filipinos achieve their dream of owning a home, and its housing loan program is one of the most popular ways to do so. In this article, we’ll take a look at how to apply for a Pag-IBIG housing loan.

Step 1: Determine Your Eligibility

Before you apply for a Pag-IBIG housing loan, you need to determine if you are eligible. To be eligible, you must meet the following requirements:

  • You must be a Pag-IBIG Fund member for at least 24 months.
  • You must be actively contributing to the fund.
  • You must not be more than 65 years old at the time of loan application.
  • You must not have any outstanding Pag-IBIG housing loan.
  • You must have a capacity to pay the loan.
  • Pag Ibig Housing Loan Calculatorcan assist you better.

Step 2: Gather Your Documents

To apply for a Pag-IBIG housing loan, you will need to gather the necessary documents. These include:

  • A completed housing loan application form
  • A photocopy of a valid ID (passport, driver’s license, SSS ID, etc.)
  • Proof of income (payslips, ITR, etc.)
  • Certificate of Employment and Compensation
  • Marriage contract (if married)
  • Birth certificate (if single)
  • Sketch plan and vicinity map of the property

Step 3: Determine Your Loan Amount

Once you have determined your eligibility and gathered your documents, you will need to determine the amount of the loan you want to apply for. The amount you can borrow will depend on your capacity to pay, your loan purpose, and the value of the property you want to purchase.

Step 4: Submit Your Application

Once you have gathered all of the necessary documents and determined your loan amount, you can submit your application to any Pag-IBIG Fund branch or online through the Pag-IBIG Fund website. Make sure that all of your documents are complete and accurate before submitting your application.

Step 5: Wait for Approval

After you have submitted your application, you will need to wait for it to be processed and approved. The processing time may vary depending on the volume of applications and the completeness of your documents. Once your application is approved, you will need to sign the loan documents and pay the necessary fees.

Step 6: Purchase Your Property

After you have signed the loan documents and paid the necessary fees, you can then proceed to purchase the property. The Pag-IBIG Fund will release the loan proceeds directly to the seller or developer.

Step 7: Repay Your Loan

Finally, after you have purchased your property, you will need to repay your loan. The loan repayment period can range from 5 to 30 years, depending on the terms of your loan. Make sure that you pay your monthly amortizations on time to avoid penalties and to ensure that your loan is paid off on schedule.

Calculate your Vat

In the Philippines, the Value Added Tax (VAT) is a tax on the sale, barter, exchange, or lease of goods or properties and services. It is a type of indirect tax that is levied on the value added to goods and services at each stage of production and distribution.

The current VAT rate in the Philippines is 12%, which is applied to most goods and services as per Vat Calculator online tool, including imported goods and services. Certain goods and services are exempted from VAT or subject to a reduced rate of 0% or 6%.

Who is Required to Register for VAT in the Philippines?

Businesses or individuals who engage in the sale, lease, or exchange of goods or properties or the provision of services in the Philippines and whose gross annual sales or receipts exceed Php 3,000,000 are required to register for VAT with the Bureau of Internal Revenue (BIR).

Pag-ibig Salary Loan

Pag-IBIG Fund is a government agency in the Philippines that provides affordable housing financing and other benefits to its members. One of the benefits offered by Pag-IBIG Fund is the salary loan program, which allows eligible members to borrow money for various personal needs.

What is the Pag-IBIG Salary Loan?

The Pag-IBIG Salary Loan is a short-term loan that can be used for any personal or emergency expenses, such as medical bills, tuition fees, home repairs, or debt consolidation. The loan amount is based on the member’s monthly income and can range from Php 1,000 up to 80% of the member’s total accumulated value (TAV) in the fund.

Who is Eligible for the Pag-IBIG Salary Loan?

To be eligible for the Pag-IBIG Salary Loan, a member must meet the following requirements:

  1. The member must be an active Pag-IBIG Fund member for at least 24 months and has made at least 5 monthly contributions in the last 6 months.
  2. The member must have a gross monthly income of at least Php 4,000 for employees and Php 5,000 for self-employed or voluntary members.
  3. The member must not have any existing Pag-IBIG multi-purpose loan or housing loan in default.

How to Apply for the Pag-IBIG Salary Loan?

To apply for the Pag-IBIG Salary Loan, a member must follow these steps:

  1. Visit the nearest Pag-IBIG Fund branch and fill out the loan application form.
  2. Submit the following requirements:
  • Two (2) valid IDs (government-issued)
  • Latest payslip (original and photocopy)
  • Certificate of Employment and Compensation (for employed members)
  • Latest Income Tax Return (for self-employed and voluntary members)
  • Proof of billing or residency
  1. Wait for the loan approval and release of the loan proceeds. The loan processing time usually takes 3-5 working days.

What are the Loan Terms and Conditions?

The Pag-IBIG Salary Loan has the following terms and conditions:

  1. Interest Rate: The loan has a fixed interest rate of 10.5% per annum, computed on a diminishing balance basis.
  2. Loan Term: The loan term is 24 months or 2 years, with a grace period of one month.
  3. Repayment: The loan is repaid through monthly amortizations deducted from the member’s salary or income.
  4. Loan Renewal: A member can renew the loan after paying at least 6 months of the existing loan and has no outstanding balance.
  5. Penalty: A penalty of 1% per month is charged for late payments.
  6. Pre-termination: A member can pay off the loan before the end of the term with no pre-termination penalty.

In summary, the Pag-IBIG Salary Loan is a convenient and affordable way for eligible members to borrow money for their personal needs. However, it’s important to consider the loan terms and conditions and to use the loan responsibly to avoid default and financial problems.

What is the hourly salary in Philippine?

The hourly salary in the Philippines varies depending on the industry, job level, and location. The minimum wage in the Philippines is set by the Regional Tripartite Wages and Productivity Board (RTWPB) of each region and is typically updated every year.

Adp IPay Hourly Calculator can calculate salary as per weekly and hourly

As of 2022, the minimum wage rates in the National Capital Region (NCR) range from Php 537 to Php 671 per day, depending on the industry and job level. Based on an 8-hour workday, this translates to an hourly salary of Php 67.13 to Php 83.88.

However, many employees in the Philippines are paid above the minimum wage rate, especially those in higher-paying industries such as finance, technology, and professional services. The hourly salary for these industries can range from Php 150 to Php 500 or more, depending on the job level and experience.

It’s important to note that the cost of living in the Philippines varies depending on the location, so the hourly salary may not be enough to cover all expenses in some areas. It’s also important to consider other benefits such as health insurance, paid time off, and retirement savings when evaluating job offers and compensation packages.


Applying for a Pag-IBIG housing loan can be a daunting process, but it’s worth it if you’re looking to purchase your own home. By following these simple steps, you can increase your chances of getting approved for a loan and achieve your dream of owning a home. Remember to do your due diligence and research the terms and conditions of the loan before signing any documents. Good luck on your journey towards homeownership!


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