Home Buying 101: A Step-by-Step Guide to Applying for A Pag Ibig Housing Loan

Buying a home has always been regarded as a milestone in almost every Filipino’s life. 

To many, it is a benchmark for success and making it in life. Unfortunately, for most Filipinos, buying a home is not exactly a straightforward and easy process.

While many may endeavor to save money to buy their first home, it often takes an inordinately long time before setting aside enough money to actually afford it. As a result, they are constrained to look for alternatives to realize the dream of finally having their very own space.

Fortunately, with a Pag Ibig housing loan, you can have the means of having your very own home too. Even low or middle-income Filipino earners can afford to build or buy their own homes. 


If you have been gainfully employed, you may have an idea of what Pag Ibig is, considering that this mandatory contribution is carved out of your salary every month.

Best known for providing housing loan programs in the Philippines, this government-owned and controlled body is responsible for administering savings programs for Filipinos domestically or employed overseas. Pag Ibig offers short term loans as well as housing programs.

While local and overseas workers are mandated to pay this monthly contribution, Pag Ibig accepts voluntary memberships for self-employed individuals. 

This government-mandated Home Development Mutual Fund (HDMF) allows its contributing members to finance their home purchase. It does so at a reduced and more affordable rate than the rates offered by real estate developers and banks.

That said, you no longer have to worry about exorbitant interest rates and defraying high amortization each month. 


Simply put, a Pag Ibig housing loan should finance your purchase of a residential lot of property that does not exceed 1000 meters, whether new, pre-owned, mortgaged, adjoining units; construction or completion of a residential unit; refinancing of an existing housing loan.

The great thing about Pag Ibig housing loans is that you can use them to finance not only your house and lot but your home improvements as well.  

As the specifics of the type of residential property are not delineated, the property you are applying for a loan can either be a townhouse, row house, or even a condominium unit. 

You are allowed to borrow a maximum loanable amount of P6 million, with interest rates anywhere between 5.5% to 10%. Keep in mind, though, that the loanable amount depends on the member’s capacity to pay.

To have an idea of how much you can borrow based on your income and preferred fixing periods and repayment, Pag Ibig has its very own housing loan affordability calculator, which you can check.  


To apply for a Pag Ibig housing loan, the following requirements below should be satisfied: 

1) Not more than 65 years old at the loan application date and not more than 70 years old at loan maturity;

2) Must have remitted at least 24 monthly contributions under Pag Ibig I, Pag Ibig II, or Pag Ibig Overseas Program. While members with less than the required number of contributions are allowed to make a lump sum payment, they should be contributing members of the Fund for at least twelve months;

3) Has no outstanding Pag Ibig housing loan (either as a principal borrower or co-borrower) and has no outstanding Pag Ibig multi-purpose loan in arrears and had no Pag Ibig housing loan that was canceled, foreclosed, or brought back due to default or subjected to dacion en pago (dation in payment), which includes situations where the borrower is no longer interested in pursuing the loan and would surrender the property back to the lender; and

4) Has passed checks satisfactorily (credit and employment, background) of the Pag Ibig Fund. 


After discussing which individuals are eligible to borrow, what you can use the loan for, and how much you can borrow, we now move to the step-by-step guide of availing the housing loan.

With these steps below, you can finally avail of a Pag Ibig Housing Loan that can go into purchasing your dream home. 

1) Get a checklist of requirements 

Once you have decided to apply for a loan, it is imperative that you should first furnish yourself with a list of requirements you are going to need. The checklist of requirements greatly varies depending on the loan’s purpose.

Luckily, you do not need to physically go to any Pag Ibig branch office to secure a list of requirements as it is available online. However, the basic requirements are the ones listed below: 

  • Housing Loan Application (HLA) form, with recent ID photo of borrower and co-borrower (if any) 
  • proof of income 
  • 1 valid ID of principal borrower and spouse, co-borrower, and spouse 
  • A certified true copy of the Transfer Certificate Title. For condominium units, a Transfer Certificate Title of the land and Condominium Certificate of Title (certificate true copy) 
  • Contract-to-Sell or any similar agreement between the buyer and seller
  • Updated tax declaration of the house and lot and updated real estate tax receipt
  • Vicinity map/sketch of the property 

An additional requirement for borrowers over sixty years old and members availing of P2-million to P6-million loans is a health statement form (medical questionnaire). 

2) Submit your accomplished HLA and other forms and pay the processing fee of one thousand pesos 

Submission of the HLA form along with complete requirements can be done in any of Pag Ibig’s offices.

Alternatively, you may also submit these online. Once you submit all of your requirements, you are to pay a non-refundable processing fee of one thousand pesos.

3) Wait for your Notice of Approval (NOA)/Letter of Guaranty (LOG) and sign your loan documents

Notice of Approvals will only be released to the borrower. OFW borrowers can have their attorneys-in-fact receive their NOA. However, if your application is not approved, you will receive a Notice of Disapproval instead.

Upon receipt of your NOA, sign your loan documents and submit these within ninety days. 

4) Submit all of your NOA requirements to PAG IBIG for the release of the check 

You are given ninety calendar days to accomplish all of your NOA requirements, which includes furnishing yourself with the following: 

  • Payment of capital gains tax and documentary stamps from the Bureau of Internal Revenue
  • Transfer of title and annotation of the mortgage from the Registry of Deeds
  • Payment of transfer tax and transfer of tax declaration from the local government unit.

5) Receive your loan proceeds 

You need at least two valid IDs to get your loan proceeds from Pag Ibig. You are also required to show the following documents before they release the check to you: 

  • Transfer Certificate of Title/Condominium Certificate of Title in the name of the borrower/co-borrowers (if applicable) with mortgage annotation
  • Updated tax declaration (house and lot) and tax real estate tax receipt in the name of the borrower/co-borrowers (if any)
  • Deed of Absolute Sale with the original stamp from the Registry of Deeds
  • Occupancy permit which is secured from the LGU Engineering Office (if applicable)
  • Assignment of loan proceeds 

If you will not be paying your loan through salary deduction, you are required to bring twelve postdated checks. 

6.) Pay monthly amortization payments 

If you default on your amortization payments, you run the risk of having your housing loan canceled or foreclosed. That said, you should already have an idea of how much amortization payment you will be making each month using Pag-IBIG’s housing loan affordability calculator.

Today, loan payments are made much easier and convenient as you can pay through the collecting partners of Pag Ibig, such as any SM or 7/11 stores, Bayad Centers, CashPinas Moneyment App (Dragonpay, Paypal, etc.), M Lhuillier, Metrobank, and Landbank via over the counter payments.

With a Pag Ibig housing loan, Filipinos can reach that dream of having their very own home. Indeed, owning your very own home will count as one of the most significant achievements you will ever have in your life–something that can be made possible with Pag-IBIG’s help and assistance.

BRIA Homes is a subsidiary of GOLDEN MV Holdings, Inc., .one of the largest real estate companies in the country. BRIA Homes is primed to bring quality and affordable house and lot packages and condominium units closer to ordinary Filipino families. This is the goal that drives every single employee in the company, for which the ultimate fulfillment is seeing a client happily moving into BRIA’s homes.

To know more, visit their website at www.bria.com.ph, like and follow “Bria Homes, Inc.” on Facebook, Twitter, Instagram, YouTube, Pinterest, Spotify, Viber Community, Telegram Channel, Kakao Talk, LINE and WhatsApp, or call 0939-887-9637.