Pagibig Financing

Pag-IBIG Fund, Housing Loans, Mortgage, Membership, Foreclosures, etc

3 Stupid Things People Do With Their Mortgage Loan

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You should consider yourself lucky if ever your housing loan application is granted by the Home Development Mutual Fund (or simply Pag-IBIG Fund).

Though it is one of the many benefits available to Pag-IBIG Members, not everyone is privileged enough to qualify for a housing loan.

Getting your housing loan approved simply means…

  1. The Pag-IBIG Fund is investing greatly on you using the money pooled from the other members of the fund just like you. That’s using the power of leverage.
  2. You have passed a very strict qualification process which includes the capacity to pay for the housing loan.
  3. By having your own home, you are helping the country in its nation-building efforts. It is a sign that you are a responsible citizen, too.

But remember this: with your housing loan comes a number of obligations that you have to be responsible for.

And your first responsibility is… TO PAY THE LOAN. When it comes to paying their mortgage, here are the top three stupid things people do that lead them into trouble.

1. Not Knowing Where or How to Pay

This is not so much of an issue if you are an employee in the Philippines and you have arranged a salary-deduction scheme with your employer. After all, they are required by Law to pay a part of your membership contribution (that’s P 100 per month) and remit the whole amount (P 200 in total) to the Pag-IBIG Fund every month (some do it quarterly).

Now, what if salary deduction is not possible? This is the case for many self-employed and OFW members. Well, the surest way is to pay over the counter at the branch where you got the housing loan. You can also pay from companies that are accredited by Pag-IBIG to collect payments for housing loans such as SM Payment Centers, iRemit branches overseas, and branches of Land Bank nationwide. Take however, that the list of accredited companies may change from time to time, so it prudent to check at the Pag-IBIG branch every once in a while. When paying from collecting agencies, always make sure that you keep your Official Receipts or whatever evidence of payment they may issue as proof of the transaction.

(See also: 5 Ways To Pay For Your Pag-IBIG Housing Loan)

2. Not Paying On the Due Date

We recently got a message from a site visitor, which says in part:

“What if i cant continue paying my monthly housing loan? What is the best option to do? Like for example if I have no more work. Can i withdraw my housing loan? if so, can i collect my payments?”

mortgage past due
Don’t make it a habit to not pay your housing loan on time.
As a home buyer, it is your duty to remember the due date of your monthly amortization and to pay it on time. If you pay beyond the due date, Pag-IBIG imposes a penalty for late payment. The penalty may be minimal and affordable, but it is not a good habit to develop. And it would lead into trouble sooner or later. Don’t wait for this to happen.

On a positive note: Pag-IBIG sometimes offers rebates to people who pay their housing loans on or before the due date.

Important note to employees: If you are on a salary deduction, always make sure that your employer is remitting the right amount and at the right time. Lapses on their part may put your account at risk.

3. Allowing Foreclosure To Take Place

It only takes 3 consecutive missed payments against your mortgage before your property may be endorsed for foreclosure. If you ever care about your property at all, I’m telling you, don’t ever allow foreclosure to kick in. It’s very expensive in terms of paying the accumulated interest and penalties. It’s also very stressful emotionally. You’d be wise to prevent this from happening first and foremost.

Well, if you are already deep into this problem, I suggest that you contact immediately the Pag-IBIG branch that handles your account and that granted you the housing loan. One of the ways you save your property is to apply for a restructuring of your loan.

(See also: How To Restructure A Housing Loan)

Again, it is worth repeating that a housing loan is a long term commitment and you have an obligation to pay for it. Be responsible.

Reader Interactions

Comments

  1. Can i have a list of interest rates for housing loan depending on the amount of loaned amounts? I heard that the interest rates were now lowered?

  2. Good day!
    Sir:
    gaya ng sinabi mo It only takes 3 consecutive missed payments against your mortgage before your property may be endorsed for foreclosure, how come some other housing loan they missed many years by paying their loan and yet still they can restructured the loan?how long pala ma proces para finally ma closed na ang loan?for clarification lng po.

    • Vic,

      It’s good that you mentioned it. Actually, there are a lot of foreclosed units that are still being occupied by the original buyers. They are there because Pag-IBIG has no time or resources to evict them all.

  3. i am working in a government for a year now. how can i apply for a pag ibig housing loan?

  4. Sir,
    tanong lang po, pwede mag bayad ng 3 months lang sa mortgage loan pero one yr. & 1/2 na ako di naka bayad di ko pa na reconstruct ang payment ko. Pls. help. Thanks

  5. may nag bebenta po sa akin ng house sa east wood residences sa block 56 lot 5 phase 2, paano ko po malalaman na di pa for closure ang ibinebenta sa akin na house. 3 yrs. na daw po sila na naghuhulog sa pag ibig. sna po ay masagot nyo po ako aga… tnx. po

    • Analiza,

      You have to ask the seller. If he is honest, you should get the real status of the property; otherwise, don’t deal with the guy.

      Another way you can find out about the real status of the property is by checking it with the Pag-IBIG Fund.

  6. Sir,
    We took a housing loan of 1.8 M with 10 years installment and we’re paying now the amortization for about 3 years,….but we’re planning to finish it less than 10 yrs by paying the principal in advance….My question is, …by doing so, could we get less interest from the fixed interest of 10 yrs?…..or in short, what is the benefit of paying the principal loan in advance? Thank you sir.

  7. Sir,

    About sa late fee, medyo guilty po kasi ako dun. Madalas ako ma-late ng ilang araw lang naman. Nasabi sa akin na nagkaka-compunding interest daw po yung late fees, totoo po ba yun? Pano ko rin po ma-cclear yung mga late fees ko? Kasi usually pag na-lalate po ako, I’ll make sure na sa next month payment ay sosobrahan ko ng 100 yung bayad ko. Pero sabi sa akin sa Principal balance daw po yun nababawas at hindi sa late fee.

    Thank you po