Saturday, April 4, 2009


Pag-ibig Creates More Loan Brackets

The Home Development Mutual Fund known as Pag-ibig financing
yesterday announced more adjustments to its housing program,
this time creating additional housing loan brackets with
lower interest rates .

Vice President Noli de Castro,who is chair of the Housing
and Urban Development Coordinating Council (HUDCC ) and the
Pag-Ibig board of Trustees, said the rate adjustment were
consistent with the redefined housing packages set by the

The new Pag-Ibig housing loan interest rate structures
retains the six percent(6%) rate for loans up to P400,000
and seven percent(7%)for loans over P400,000 up to P750,000.
Interest rates have been slashed from ten point five percent
(10.5%)to only eight point five percent (8.5%)for loans
over P750,000 up to P1 million, and nine point five (9.5%)
percent for loans over P1 million to P1.25 million.

Interest rates for loan from P1.25 million to P2 million
remains at ten point five (10.5%) percent.

Along with the latest rate adjustments, the Pag Ibig board
also approved the increase in maximum loanable amount to
P3 million, at an interest rate of eleven point five (11.5%)
percent per annum for loan starting at over P2 million.

The new rate took effect on April 1, 2009

De Castro said the latest amendments to the Pag-Ibig
housing loan program was meant to make the program more
affordable to members, especially workers in highly -
urbanized areas whose housing needs often range from more
than P750,000 up to P1 million.

Likewise, with the Boards approval of raising the loan
ceiling to P3 million, Pag-Ibig will be able to meet the
home financing needs of members belonging to the middle
income earners.
This should give Pag-Ibig members a wide range of choices
in buying a house .

source : Philippine Daily Inquirer
Date : April 3 , 2009

Thursday, March 19, 2009


For Private , Employed , and Self - employed Person

2 Years or 24 months contribution to Funds
Qualify for Pag ibig housing loan ( can be upgrade )

Borrowings up to 2 million to for the following :
1.purchase of fully developed lot in a residential area.

2.purchase of a lot and construction of houses.

3.purchase of house and lot , townhouses , or
condominium unit . of a house on a lot owned by members.

If your monthly contribution is P500 , your loanable
amount is 1 million to 1.1 million

Remember :
The lots to be acquired using the loan must be free
from any encumbrances .

The maximum term of a Pag ibig housing loan is
30 years but some are 25 years.

PAG IBIG 1 & 2

P 200 ------ Up to P500,000
P 250 ------ over P500,000 - P600,000
P 300 ------ over P600,000 - P700,000
P 350 - -----over P700,000 - P800,000
P 400 ------ over P800,000 - P900,000

P 450 ------ over P 900,000 - P1,000,000
P500 ------- overP1,000,000 - P1.1 M
P550 ------- over P 1.1 M - P 1.2 M
P 600 ------ over P 1.2 M - P 1.3 M
P 650 ------ over P 1.3 M - P 1.4 M
P 700 - ----- over P 1.4 M - P 1.5 M
P 750 ------ over P 1.5 M - P 1.6 M
P 800 ------ over P 1.6 M - P 1.7 M
P 850 ------ over P 1.7 M - P 1.8 M
P 900 ------ over P 1.8 M - P 1.9 M
P 950 ------ over P 1.9 M - P 2 Million

POP = US $ equivalent of availment

Tuesday, March 17, 2009


Some subdivisions or property developers offer a
buy - back provision for housing unit sold through
various financing schemes .

The provision serves as guarantee that the property
developer will reacquire housing units foreclosed
by financing institutions due to non - payment of
borrowers .

Pag - ibig covers housing units costing up to P300,000
even without buy-back guarantee and over P300,000
up to P750,000 pesos with buy-back guarantee .
The fund will cover 90% of the cost of housing units
worth over P300,000 up to P750,000 pesos without
a buy-back guarantee .

Housing units that cost over P750,000 up to 1 million
pesos are only 95% covered if with a buy-back guarantee
and 85% covered if without

Pag - ibig covers 90% of the cost of housing units worth
1 million pesos to 2 million pesos if with buy - back
guarantee and 75% of the cost if without .


This presents the amount of the housing units as
stipulated in the contract to sell , licensed to sell ,
amount of loan applied for , or cost estimates .


Pag -ibig fund takes into consideration the members
capability to pay the monthly amortization of his or her
housing loan . It requires that the monthly amortization
of the member on his or her loans must not be more
than forty percent ( 40 % ) of his or her Net Disposable
Income ( NDI ) . Hence , if a member take home pay
is P20,000 monthly , his or her monthly amortization
must not exceed P8,000 pesos .

Other uses of housing loan , aside from the mentioned
above are :

* Home improvement and refinancing of existing loan
in institution acceptable to the fund .

Aside from meeting all the requirements , Pag - ibig
also requires that the borrowers must not more than
65 years old at the time of loan application and not
more than 70 years old at the date of loan maturity ,

Must not have any outstanding loan ( housing ) either
as a borrower or co-borrower , no arrears in their
multi-purpose loan repayment .

Pag - ibig charges P3,000 pesos for housing loan
processing fee . The P1,000 pesos is paid at the time
of the processing while the remaining P2,000 is taken
from the loan process upon its released .

The monthly amortization of the housing loan may
be paid in 2 ways through :
* Salary deduction
* issuing of 12 post dated checks to cover 1 year of payment.

Payment of the monthly amortization starts a month
after the full released of the loan

By fully developed lot , Pag- ibig covers kinds that is free
from squatters , with access to electricity and water ,
with provision from drainage and road right- of - way
and existing land monument .

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  • Monday, March 16, 2009

    Steps in Pag - ibig housing loan

    You've seen a property that you want to acquire ,
    check it out repeatedly , in fact , and you're convince
    that its the right one for you .

    You're a Pag - ibig fund member and want to acquire
    the house and lot or the lot where you want to built
    your home through Pag - ibig housing loan,
    go about this :

    Easy Steps :

    Step 1

    Attend the housing loan counseling session at the
    Pag - ibig fund office nearest you .

    Applicant are ask to accomplished a preliminary
    loan counseling questioner , housing loan application
    form , and membership status verification slip ( MSVS )

    Based on this documents , Pag - ibig officers will
    determine if the applicant is eligible for housing loan.
    Eligible applicant are given a checklist of requirements
    that they must comply with before they move to next .

    The requirements :
    * certificate of employment with salary breakdown
    * latest 3 months payslip
    * income tax return with W2 for last 2 years
    * photocopy of company ID or valid ID with signature
    * Proof of billing or authorization if named to others
    * Birth certificate ( for single ) , marriage contract
    * cedula / residence certificate
    * pictures , 3 pcs, 1x1 and 2 pcs. 2x2
    * 24 months Pag-ibig verification slip
    * latest service record ( for government employees )
    * job contract with visa or passport ( for OFWs )

    * SPA - Special Power of Attoney ( from RP consulate )
    * ID with signature of person designate in the SPA
    * POP contribution with record book

    Step 2

    Submit to Pag -ibig your loan application form
    together with all the requirements in the checklist
    and pay the processing fee of P1,000 pesos.
    The amount is non-refundable even you disapproved.

    Step 3

    Wait for notice of approval or letter of guarantee
    from Pag- ibig on your housing loan . After your
    loan is approved , you will need to sign loan documents
    at Pag - ibig office .

    Step 4

    Proceed to BIR and present the DeeD of Absolute Sale
    between you and the owner of the property . You will
    also need to submit the other necessary documents
    like ,
    tax declaration
    tax reciept
    tax clearance
    payment of capital gains
    documentary stamp
    certificate authorizing registration ( CAR )

    Before buying , TCT must be free from any encumbrances

    Step 5

    After getting CAR from BIR , proceed to the notary
    public and have your loan/mortgage agreement
    notarized ( LMA ) .

    Step 6

    Go to cityhall and pay transfer tax , then go to
    Register of DEEDs to register and pay registration fee
    for the transfer of title and annotation of mortgage.

    Step 7

    If you've taken out a loan to purchase a new residential
    unit or a lot where you've had a house constructed ,
    you need to secure an occupancy permit from
    engineering office in the cityhall where property is
    situated .

    Step 8

    Go to Assessors office in the Cityhall where you will
    need to secure tax declaration for your property .

    Step 9

    After visiting other government agency , you need to
    go back to Pag-ibig fund office , armed with the
    following documents :

    1. Original transfer certificate of title with your name
    and mortgage annotation on it .
    2. DOAS with original RD stamp
    3. New tax declaration
    4. Updated real estate tax reciept
    5. Occupancy permit
    6. Assignment of loan proceeds

    Step 10

    The second to the last step is to recieved the loan
    proceeds that you will use to pay the seller of the
    property .

    Step 11

    The last step is to start paying monthly amortization
    based on the scheduled date .

    Interest rate are at six percent ( 6% ) for loans up to
    P300,000 pesos , seven percent ( 7% ) for loans above
    P300,000 to P750,000 and ten point five percent (10.5%)
    above P750,000 and up to 2million pesos .
    ( Redefined already )

    Jerry Tuazon
    Rebap Ortigas Inc.
    email :
    cell no. 0906 456 5727