- Why are there two different housing loan programs?
Pag-IBIG is offering two housing loan programs to cater to the actual need of the borrower based on his/her capacity to pay.
One of these two programs is the Affordable Housing Program (AHP), which is designed for minimum wage earners or whose gross monthly income does not exceed P17,500. Up to P750,000 may be borrowed under this program, with interest rates of 4.5% or 6.5% in the first ten years of the loan, depending on the gross monthly income of the borrower.
The other program is called the End-user Financing (EUF) Program or the regular housing loan program. Pag-IBIG members may borrow up to a maximum amount of P6 million. The annual interest rate depends on the fixing period chosen by the borrower based on the Fund’s pricing framework (please see item #4).
- I can only afford a monthly amortization of P2,000. How much housing loan can I avail?
Based on computation, a qualified Pag-IBIG member can borrow up to P394,722.32 loan amount under the AHP, with a monthly amortization of P2,000 for the first ten (10) years of the loan. This illustration is under a 4.5% interest rate and 30-year repayment period. The gross monthly income required for this loan amount and interest rate shall not exceed P15,000 for those working in the NCR and for OFWs, and P12,000 for other regions.
- How can I avail of the maximum loanable amount of P6 million under the EUF program?
Availment of a higher loan amount up to P6 million depends on the borrower’s actual need, loan-to-appraisal value ratio, and capacity to pay, whichever is the lowest. Illustrated below are the gross monthly income requirements corresponding to the loanable amount:
- How can I avail of the 6.985% interest rate for housing loan?
The 6.985% interest rate under the EUF Program is for loans under a fixing period of three (3) years. This means that if a borrower chooses the 3-year fixing period, he/she is protected from the interest fluctuations for a period of three years. A borrower is given an option to choose his/her preferred fixing period upon loan application. Under this scheme, the shorter the fixing period, the lower the interest rate, as illustrated below:
*As of August 5, 2014. The interest rate under this pricing scheme may change from time to time depending on the current market rates.
- How do I apply for a housing loan?
The following are the step by step procedure on availing of a housing loan:
- Get a Housing Loan (HL) Application Form and the Checklist of Requirements for Pag-IBIG HL from any Pag-IBIG office nationwide or at http://www.pagibigfund.gov.ph (click “downloadable forms”).
- Submit the accomplished HL Application Form together with the complete requirements, to the Pag-IBIG office whose jurisdiction covers the property subject of the loan. Pay the partial processing fee of P1,000. You may also file your HL application online via http://www.pagibigfund.gov.ph (click “E-Services”). The processing of application is 16 working days, provided that all required documents are submitted on time and without issues.
- Upon receipt of the Notice of Approval (NOA)/Letter of Guaranty (LOG), affixed your signature in the loan documents.
- Accomplish the NOA requirements for check release.
- Receive the loan proceeds from Pag-IBIG Fund. (the payee is either the borrower, seller, or a third party to which the loan proceeds is assigned to be released). Bring two (2) valid IDs and twelve (12) Post-Dated Checks (if payment is not thru Salary Deduction).
6. Payment of monthly amortization starts one (1) month from DV/Check Date.