This article is inspired by a letter sent by one of the site visitors who was planning to apply for a Pag-IBIG Housing Loan. He was doubtful whether he qualifies for certain amount of loan which is equivalent to the selling price of the a particular lot-only piece of real estate considering that the amount of contributions he is giving to the Pag-IBIG Fund is very minimal — the required minimum, in fact. The letter reads in part:
“I’m applying for a Pag-Ibig housing loan for a Php 640,000 worth of LOT. I’m employed in a private company and having a monthly net of Php 60,000 but my Pag-Ibig contribution is only Php 200 and is equivalent to Php 500,000 maximum loanable amount. How can I avail a much higher loanable amount to cover Php 640,000?”
This is the kind of letter that every Pag-IBIG Member deserves to be aware of. There are so many fine points raised by the letter sender and we will tackle three of them in the succeeding lines.
Point #1: Lot-Only Purchase
When thinking about Pag-IBIG Housing Loan, most Pag-IBIG members normally associate it with a house and lot purchase. Well, that’s not necessarily the case. Just like the letter sender, you can use it to finance a lot-only property just as well. As a matter of fact, a Pag-IBIG Housing Loan can be used in any of the following:
- Lot-Only Property. Normally, this means a piece of lot in a subdivision. That property has to be assessed by the Pag-IBIG Fund whether its title qualifies as valid collateral for the loan.
- House Construction. The project has to be a residential unit that is to be constructed on a lot owned by the member-borrower.
- House and Lot Purchase. This is the most common one. If the subdivision project is accredited by Pag-IBIG, please take advantage of the assistance from your broker/agent when processing your housing loan.
- Home Improvement. Again, the land title has to be in the name of the borrower. A Home Improvement Loan may be availed by a member with an on-going mortgage.
Point #2: Minimum Required Contribution
Looking back at the letter, you may notice that he mentioned about contributing only P 200 per month, just like most every other member of the Pag-IBIG Fund — and rightly so. With regards to the rate of contributions, the Home Development Mutual Fund Law of 2009 stated the following :
- Employees earning more than One Thousand five hundred pesos (P 1,500.00) per month – two percent (2%).
- All employers – two percent (2%) of the monthly compensation of all covered employees.
Further more, the Pag-IBIG Fund stated that, “The maximum monthly compensation to be used in computing employee and employer contributions shall not be more than Five thousand pesos (P 5,000.000)….”
That means, whether you are earning below the minimum wage or you are in a high-income bracket, you are required to contribute only P 200 month (including the employer’s share already).
The reasoning behind this figure is to simplify the accounting process. A rounded-off figure like P 200 is easier to manipulate than, say P 836.42. Add to the fact that some members have varying incomes month after month, this method is indeed much simpler.
Point #3: Contribution vs Loan Amount Entitlement
Previously, we have discussed the fact that a borrower’s loan amount entitlement is affected primarily by two factors: his income and his contributions. Please refer to that very important article on Income, Contribution and Loan Entitlement.
Well, actually this is how it works: When you apply for a Pag-IBIG Housing Loan, you will be assessed based primarily on your capacity to pay — there is a table for that which is also shown in the article mentioned above. Since almost everyone is contributing only P 200, once you qualify for a loan amount that is bigger than P 500,000, you will be asked to upgrade your monthly contribution based on that loan amount also.
So to recap: First, you apply for a particular loan amount first and then you may have to upgrade your membership contribution to a higher amount.
Other Points Of Interest:
This part is for you to answer. On the letter, he said his salary is P 60,000 per month and he wants to take on a Pag-IBIG Housing Loan amounting to P 640,000 to purchase a lot-only property. Here are some questions that you may want to unravel for yourself:
- Assuming the Pag-IBIG Fund has assessed the property to be P 640,000 and he is allowed a loan of only 70% of that appraised value, how much equity payment will be required of him by the seller?
- Based on Q #1, is there a need for him to upgrade his membership contribution?
~~~
“Bigger Loan Amount, Smaller Contribution” is written by Carlos Velasco
HOW TO PROCESS A HOUSING LOAN? I’M WORKING IN QATAR I WANT TO TAKE A LOAN FOR MY HOUSE LOT IN PHILIPPINES..I NEED YOUR ASSISTANT THKS.
I have an existing house and lot loan in the bank with 11% annual interest rate and has a balance of 700K. Because I want to avail the Pag-ibig lowest 7% annual interest rate for the amount, can I have Pag-ibig to do the refinancing? Considering my net monthly income of PhP 60K and having a combined Php 200 monthly contribution. Comparably, if there are charges like transfer and other processing fees, will it affect the amount gained from 7% interest rate versus the existing 11% in the bank?
carl,
good day,
i am a delinquent member since i have not been regularly paying my monthly membership contribution for the past years. since i am intending to apply for a lot loan, can i just start paying the current contribution and at the same time upgrade my membership, for me to avail of higher loan entitlement?
regards,
cyril
@cyrilcole:
Yes Sir. There’s no need to pay your past membership dues. They may have to require you to pay 6 months or so, but it depends on your case.
Thanks for visiting. 🙂
@ed:
That’s possible, but the process may be more complicated than you think. But you can try. You may have to coordinate with your bank for this.
@Julius:
You may start by attending a loan counseling session in your city/town. If that’s not possible since you are overseas, please have a representative in the Philippines do it on your behalf.
iam an individual payor and my cntribution mnthly is 450,,if i will pay 6mnths,it ius possible to process my loan.hnx
sir,
i am a pagibig member overseas (saudi arabia), i went to pagibig branch here in cotabato city to check the status of my contribution and also to continue my contribution. but the clerk told me she cannot check the status because i am OFW pagibig member, she can only check local membership. she advised me instead to apply for a new membership. she advised me further that i should get all my contribution before i went home. please advice me what to do.
thanks
mon
@monsour:
That’s true. They don’t have a centralized database system that they can access at any branch. You may have to request it at the main office in Makati.
@Marilyn:
There is no assurance of a loan guarantee, but you can try.
gud pm. i have a question, we plan to purchase a lot only. acceptable po ba sa pag-ibig na bukod sa principal borrower, pati ung mga co-borrower niya e nakalagay din ang pangalan sa titulo? another question, pano po ang process kapag i-represent ko ang sister ko na OFW sa pag-apply ng housing loan?
@irene:
About the names being on the title, that’s possible. About becoming your sister’s representative, you both can execute a Special Power of Attorney. There is a pre-printed for at the Pag-IBIG Office that you can use.
hi sir/madam,
im a member of pagibig local for 5yrs or more,and active contributor. when i work abroad,i upgrade to pop. i dont know if this is the right word,upgrade. in short i am also a member or POP, and i am contributing up to date. now, i want to ask if i can make a loan? my aunt has a lot in baybreeze subd,taguig.and i want to take it and to build a small house.pls advice me what to do and what kind of loan i am going to take and you may approved. again i am a OFW.thanks
Dear Admin, I was a member of pag-ibig since 1981 up to 1984 when I stop as I worked overseas. Just currently, I applied for a 3M POP membership. Since I did not avail for any loan from my previous pag-ibig, and considering that I am a new POP member, can I apply for a house and lot or lot only loan? Please advise, Thank you.
hi admin ask ko lang poh kng sa 4months q lang bayaran ang 2yrs pwd,,na bah ako makapag loan kaagad,, meron ba kayung cash loan o car loan un po kasi ang gx2 q tnx,,,,
@jhayr:
That’s possible, but it will not be to your advantage. Pag-IBIG doesn’t offer a Car Loan and the Personal Loan that you mentioned actually is just one form of a Pag-IBIG Multi-Purpose Loan.
To learn more about the MPL Loan, please refer to the link below.
https://www.pagibigfinancing.com/articles/2010/the-pag-ibig-multi-purpose-loan/
@Gerry:
Please note that the POP is different from a regular Pag-IBIG Membership. If I were you, please update and continue on your regular membership and forget about that POP if you have not contributed that long yet.
@nette:
As mentioned above, the POP Program is different from the regular program of Pag-IBIG. And depending on your contributions, you can apply for a housing loan based on either program.
ah okie tnx admin so posible pala ako makapag loan kapag nabayaran ko ng 4months,,ask ko lang po kng mga ilang days mkakapag load kasi ang bakasyon ko lang dyan sa pinas,45 days,posible puh bang mkapag loan ako agad ng 250,000
may naihulog po ba ang mitsumi components sa akin nung 1986 to 1990?
gud am po admin,husband ko po ay isang OFW at new POP member po sya,ask ko lang po kung bakit 100 lang po ung pinabayad sa kanya instead of 200 minimum contribution?eto na po ba ang monthly contribution?
Dear Admin,
Kindly explain about regular pag-ibig and POP. As an OFW, I reapplied for the continuance of my previous pag-ibig. Your staff in the Phil embassy Kuwait immediately asks my payment for the POP membership, which I thought it, was a payment to continue my previous pag-ibig membership.
Thanks and regards.
gudam admin ask ko lng kung anung klaseng loan ang pde kong iavail? kc ung 2nd floor ng haus nmin pagagawa ko?cash po ba ang maloloan ko pag house construction ang iavail ko n loan?tnx..
pde po bang salary loan ang iavail ko kht POP member ako?hanggang magkanu po ang pdeng iloan kung pde?
@jessen:
Right, the minimum contribution is P 200 per month. Please ask them about that P 100 payment.
@rosalie:
Please check that at the branch.
@jhayr:
The loan amount that will be granted to you will depend on your qualification. Please attend the loan seminar conducted at the branch to find out how much you can get.
Hello poh, pwede po b aq mg-apply ng renewal ng MPL.. nkbyad npo me ng 1 year and 4 months…
im an ofw… me lupa n po ako..i need a loan to build up my house.. pano po ang gagawin ko?
Admin :
Ask ko lang po pwede ba kami maka avail ng loan para sa loteng adjucent lang ng school namin .. Eh gusto sana namin maghati-hati kaming apat sa isang lote na may isang title. Hindi namin kasi kaya pag susuluhin ng isa ang lote. 250 sq ang lote at worth 1.6M hope you can feed us info about this..
hello admin .. how long will i pay if i avail the housing loan amounting of 800k – 900k ??
@Diane:
Yes, I think you can now apply for another loan.
ma-ddis-approve po b ang MPL q kung sakling ng-change me ng status as married pero ndi q npo inupdate ung Pag-ibig details q..
Hi Admin .may salar loan ako last year , kaya lang noon pumunta ako sa Pasig Branch wala na daw ako utang dahil upset sa contribution o monthly?
2004 ako member gusto mag housing loan .ano dapat ko ba bayaran ang salary loan ko?upang makapag loan ako ng housing?.active ba ba ang membership ko? dahil 6 month din hindi ako nakapag hulog.thanks
Admin: pwede bang mag avail ng property loan na hatihati kami sa isang lote? Please do feed us
ask ko po bukod po sa housing loan anu pa pong pdeng iloan ng POP member?pde po ba magsalary loan or multi purpose loan program?pls.reply..thanks..
ask ko po sana how to apply salary loan,yung husband ko po matagal na member almost 17 yrs napo.we plan to apply salary loan po san.at pano po un kc ilang company napo ang napasukan nya?
Hi,
I just want to ask if I can loan 1 Million pesos as an additional budget for my house construction. I already have an approved bank loan and needed extra 1M Pesos more to start the construction as bank will only release the first payment after 30% of the construction.
Please advise.
Regards,
Mark
Hi PagIbig Admin,
If I have a 325,000 per annum income, 29yrs old, not married, a member since 2004. How much amount of housing loan can I get? I have purchased a house&lot (townhouse) through a developer, I have an 80% balance (P1.9M) to be paid in 120mos terms. I am thinking of applying it through you.
Thanks
ask ko lng po kung my i.d. ang pag ibig card at kung pwedeng eh print out ang contribution sa pag ibig fund
ask ko din po kung magkano ang naiihulog ng employer ko sa amin employee members thnx po
@heide:
Please request for that report at the office of the Pag-IBIG Fund.
@Diane:
Here’s an article that discussed about Loan Amount Entitlement:
https://www.pagibigfinancing.com/articles/2011/how-your-income-and-contributions-affect-your-housing-loan-entitlement/
@Mark:
Please understand that Pag-IBIG will be requiring the Land Title as collateral for the loan.
If you are currently loaning from a bank, you probably have pledge the Title for that loan already.
@luth:
He has to consolidate all his contributions from his past employers. Please do it at the office.
@jerlyn:
Yes, you can also loan using the MPL Loan Program.
@luzyl:
Yes, you can all combine and apply for one loan… If you are qualified.
@ADE:
You need to contribute anew and then wait for a couple more months to apply for a housing loan.
@Diane:
YOu civil status has nothing to do with your loan application. But of course, please notify them so they are also aware.
hi! ask ko lng po, i just got married and we are planning to get a house & lot thru pag-ibig. pwede po ba na dalawa kmi ng husband ko ang mgbayad ng payment just in case? both of us are pag-ibig members.thanks!
Greetings. I just want to ask kung posible po na makapag housing loan ako. ang status ko po ay Co-terminus since 2007 lang, ang monntlhy gross ko po ngayon ay 23,555. since po hindi ako permanente ay maaproban po kaya ang loan application ko? hihintayin ko po ang inyong kasagutan. maraming salamat po.
admin ask ko lang po why in my payslip appeared 100 pesos ang pag-ibig contribution ko which i understand the minimum is 200. PNP member p0 ako and member since 2004. Tnx p0 and MABUHAY
Hi, Good Morning.
Our case is this, me and my husband purchase a lot last April 2011 payable in 5 years with 11% interest…we are currently paying for the downpayment for 18 months..we are planning to apply for Pag-ibig loan for us to pay the lot in full within 2 years because it’s 0% interest.
My husband is a seaman and i am a self employed.Can it be possible na makapag loan kami kahit husband ko lang ang member and what are the requirements? and up to how much is the maximum allowable loan?
We hope for your reply.Thanks you.
@nonie:
There’s no such thing as 0% interest loan at Pag-IBIG.
@mel:
It’s because your employer, the PNP, is also contributing another P 100 per month to make it P 200 in total.
@jerome627:
Yes, no problem about being a co-terminus.
@sheena:
Right, you both can get a single home loan.
Dear Admin,
I’m working here in Saudi Arabia and a POP member of Pag-ibig fund. I’m just wandering, why is it that we, overseas worker cannot apply our housing loan on-line unlike those who are in the Philippines? After all you have your Pag-ibig representative here abroad (Philippine Consulate or Embassy) who can verify the validity of our documents. This is the common problem of OFW who’s family also here, and we don’t have available relatives to be our representative back home. If the problem is the processing fees, we can send it by remittance with your representative’s verification and approval.
Thank you very much and hoping for your kind consideration.
My mom is in the states for so long and as far as I know she wasn’t able to continue her monthly contribution. We just want to ask the procedure and requirements on how to avail the home reconstruction loan program for our house here in the philippines. Just to add on, my mom had a housing loan @ pag-ibig before but already paid a year ago and she’s planning to loan again for reconstruction of our house. Can you give as a step by step procedure on how to avail the home reconstruction loan?
I am a Pagibig member since I started working 1998, this is the first time for me to apply for a loan. I got a property from Cavite and started paying for 3 months now. Can you help me avail the Pagibig loan? to have a lighter payment on my part. What will I do? How to do the process to avail the Pagibig?
Dear Admin,
We have a house in the middle of a lot which is 335 sq meters. The house has a floor area of only 200 sq meters. We have 2 titles for the whole lot combined. I’d like to know which of the 2 titles am I going to use as collateral to Pag-ibig? I only need a house improvement loan, but the house occupies part of Lot 1 and Lot 2 or at the middle of the lot.
We have an ongoing house construction at my parents lot, can I apply for a loan if the lot is not on my name? What are the requirements if yes.
Thanks
ng avail po ako ng housing loan kaso na foreclose po xa last 2003
pede po ba ako ili mg avail ng housing loan since active member nmn ako ng pag ibig
@nell:
Sorry, but Pag-IBIG won’t allow you to have another housing loan once you had a history of foreclosure.
@Daijrah:
The title must be in the name of the borrower.
@Ann:
That’s very complicated, but I think the two titles.
hi i want to loan 1M for house reconstruction but my contribution is about 30 months only..is this possible?
im waging only 18K per month not includes OT and bonus.
how much interest per annum if i will pay this in span of 25yrs?
then if the loan approves will i get the whole amount of 1M?
or is there an equity that i will give?how many percent?
Kindly answer my questions.
Thank you so much..
@maricar:
Quick reply:
Yes there is an equity. The loan amount depends on your income. And you are not eligible for a housing loan. This article about Income and Loan amount will help you understand it more.
https://www.pagibigfinancing.com/articles/2011/how-your-income-and-contributions-affect-your-housing-loan-entitlement/
Please read that article.
Hi I would like to know if I am eligible for a housing loan, my monthly contribution as i check in my pay slip is only Php100 and my Monthly Income is not more than 15K.
Thank you..God bless
@Leah:
Please refer to the table shown in this article:
https://www.pagibigfinancing.com/articles/2011/how-your-income-and-contributions-affect-your-housing-loan-entitlement/
Good day sir! I just want to know if how many years we can pay in pag ibig to avail a housing loan? My husband is currently working in bahrain and according to him you have this offer for ofw to pay 2 years in pag ibig and then you can avail a housing loan after some requirements submitted. And you can pay 250bd for this 2 years. Is this true sir? Hope you can answer me all this questions for me. Thank you and God bless!
@menchie:
Yes, two years of active membership is the minimum requirement.
Hi,
I would lik to ask if I am eligible of a 1M housing loan with a 24K monthly income and a minimum conttribution. By July, i will be 2 years as a member. If I am eligible of that said loan amount, when can I apply for a housing loan.
Thank you so much for attending my concern
Angel,
You have to be at least an active member for the past 24 months by the time you apply for a home loan. As to the amount of the loan you can possibly get, please refer to the link provided below.
https://www.pagibigfinancing.com/articles/2011/how-your-income-and-contributions-affect-your-housing-loan-entitlement/
Thanks for the quick reply.
Follow up question.
Can I avail the housing loan right away if i am going to increase my contribution let say: from 200 to 500 – contribution and
24K monthly income
for 1M housing loan.
Or do i need to pay the contribution for a period of time to avail my desired housing loan amount.
Can I apply by August since this will be my 25th month as a member?
Thanks agian.
Angel,
It depends on the branch where you are applying. Some will allow you to loan by giving one time payment covering 24 months. Other would have you wait for 24 months. Please refer to the branch that has jurisdiction of your area.
Im a member of Pag-ibig and my contribution is almost 2 years. I want to continue my contribution as a Individual Payor because I was not able to contribute since 2009 up to present(2012). Can I continue and avail a loan if Im a Individual Payor? How? What are the process?