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  • How to Apply for a Pag-IBIG Housing Loan: Here Are the Requirements You Need

    Take note of the documents to prepare and the steps involved in the application process.
    by Kate Borbon .
How to Apply for a Pag-IBIG Housing Loan: Here Are the Requirements You Need
  • Planning to construct a new home or move to a place that is completely your own? And you are looking for additional funds to purchase or construct your family’s dream home? One of your available options is a Pag-IBIG housing loan from the Home Development Mutual Fund (HDMF)

    HDMF is more widely known as the Pag-IBIG Fund, and it is the Philippines’ national savings fund that aims to help Pinoy workers become homewoners. It offers different housing loan programs depending on your needs and ability to pay.

    The Affordable Housing Program, which applies if you are purchasing a fully-developed residential lot or property, may also be used for home improvements, the construction or completion of a residential unit you own, or the refinancing of an existing house loan.

    If you need funds for minor home improvement, renovation, or other upgrades, you may avail of the Multi-Purpose Loan, which can also be used if you need to fund a small business or your children’s education, purchase appliances or furniture for your home, make car repairs, or go traveling.

    Pag-IBIG housing loan requirements

    If you are planning on applying for a Pag-IBIG housing loan, take note of the following eligibility requirements:

    • Must be a Pag-IBIG Fund member who has been contributing for at least 24 months. Members with less than the required number of contributions are allowed to make a lump sum payment based on the mandatory monthly contribution rates to meet the requirement at the time of the loan application, provided he or she has been a member of the Fund for at least 12 months.
    • Not more than 65 years old at the date of the loan application and not more than 70 years old at loan maturity.
    • Has the legal capacity to acquire and encumber (carry debt) real property.
    • Has passed satisfactory background/credit and employment/business checks of the Pag-IBIG Fund.
    • Has no outstanding Pag-IBIG housing loans, either as a principal borrower or as a co-borrower.
    • Has no Pag-IBIG housing loan that was foreclosed, canceled, bought back due to default, or subjected to dacion en pago (giving back the property to the lender).
    • Has no overdue outstanding Pag-IBIG multi-purpose loan at the time of the loan application.
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    1. Fill up a Housing Loan Application form.

    If all of the eligibility requirements apply to you, it is time to prepare the documents. Make sure to fill up a Housing Loan Application with a recent ID photo of borrower and/or co-borrower. You will need to fill up two copies. Look for HQP-HLF-068/069 to fownload and print the form here. Ask your company HR representative because his department is likely to have a copy as well.

    2. Bring a valid ID

    Photocopy one valid ID (back-to-back) of principal borrower and spouse, co-Borrower and Spouse, seller and spouse, and developer’s authorized representative and attorney-in-fact, if applicable.

    3. Show a proof of income.

    The proof of income depends on your employment or source of income. Those who are locally employed may choose from any of the following:

    • Notarized Certificate of Employment and Compensation (CEC) indicating the gross monthly income and monthly allowances or monthly monetary benefits received by the employee
    • Latest income tax return (ITR) for the year immediately preceding the date of the loan application, with attached BIR Form No. 2316, stamped and received by the BIR
    • Certified one-month payslip, within the last three months prior to the date of the loan application
    • For government employees: certified one-month payslip within the last three months prior to the date of loan application must be submitted alongside CEC or ITR

    Self-employed individuals may choose from any of the following:

    • ITRaudited financial statements, and official receipt of tax payment from bank supported with DTI registration and mayor’s permit/business permit
    • Commission vouchers reflecting the issuer’s name and contact details (for the last 12 months)
    • Bank statements or passbook for the last 12 months (if income is sourced from foreign remittances, pensions, etc.)
    • Copy of Lease Contract and Tax Declaration (if income is derived from rental payments)
    • Certified true copy of Transport Franchise issued by the appropriate government agency (LGUs for tricycles, LTFRB for other PUVs)
    • Certificate of engagement issued by the owner of the business
    • Any document that would validate your source of income
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    Overseas Filipino workers (OFWs) who want to apply for a Pag-IBIG housing loan may choose from any of the following proof of income:

    • Employment Contract (between employer and employee and the Philippine Overseas Employment Administration Standard Contract)
    • Certificate of Employment and Compensation (written on the Employer or Company’s official letterhead or signed by the employer, supported by a photocopy of the employer’s ID or passport, for those who work as household staff or are similarly situated)
    • Income Tax Return filed with Host Country/Government
    • English translation (if any of the documents above are in foreign language/s)

    The documents listed above are only the basic requirements. For a more comprehensive list of Pag-IBIG housing loan requirements, click here.

    4. Prepare your Transfer Certificate of Title (TCT).

    The TCT needs to be the latest file and a certified true copy. If you are planning on purchasing a condominium unit, present the TCT of the land and the certified true copy of the Condominium Certificate of Title (CCT).

    The following doccuments will be needed before the loan is released. 

    • TCT/CCT in the name of the borrower and/or co-borrower with proper mortgage annotation in favor of the Pag-IBIG Fund (Owner’s Duplicate Copy)
    • TCT/CCT in the name of the borrower and/or co-borrower (Certified True Copy) with proper mortgage annotation in favor of the Pag-IBIG Fund (RD’s copy)
    • Updated Tax Declaration (House and Lot) and Updated Real Estate Tax Receipt (photocopy) in the name of the borrower and/or co-borrower
    • Loan Mortgage Documents (e.g. Loan and Mortgage Agreement duly registered with Registry of Deeds with original RD stamp; Deed of Absolute Sale duly registered with Registry of Deeds with original RD stamp; Duly accomplished/notarized Promissory Note; and Disclosure Statement on Loan Transaction)

    5. Updated Tax Declaration (house and lot) and Updated Real Estate Tax Receipt (photocopy)

    6. Contract-to-Sell or similar agreement between the buyer and seller

    7. Vicinity map or sketch of the property

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    How to apply for a Pag-IBIG housing loan

    Once you have prepared all the requirements you will need, it’s time to start the application process. RealLiving.com.ph breaks down the steps included in this process. First is to secure an online appointment to submit your Housing Loan Application and supporting documents. You may also choose to submit your application at a Pag-IBIG branch office nearest you. Do note that there is a special lane for individuals who have scheduled their appointments online.

    Next, you will need to pay a processing fee of Php1,000. On top of the processing fee, the Pag-IBIG Fund website states you need to prepare: an appraisal fee of Php2,000, which is also to be paid upon the filing of the loan application, and another Php2,000 which is to be deducted from the loan proceeds and to be paid upon takeout.

    The next step is to wait for your Notice of Loan Approval or Letter of Guarantee and sign the loan documents. Once signed, proceed to the Bureau of Internal Revenue (BIR) to pay for your documentary stamps and capital gains tax and then to the Registry of Deeds for the transfer of the title and the annotation of mortgage.

    Finally, submit the Original Transfer Certificate Title (in your name and with annotated mortgage) for the release of your loan. In the month immediately after the final release of your loan, don’t forget to pay for the first monthly amortization.


    The decision to rent or buy a home depends on many different factors, depending on the needs of your family. To help you make a wise choice, click here.

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