What is the Pag-IBIG Fund Housing Loan and How to Apply

The Pag-IBIG Housing Loan is a financial program designed to help Filipinos achieve their dream of homeownership through accessible and affordable financing options. Offering up to P6 million in credits with some of the market’s lowest interest rates, the program caters to a wide range of housing needs, from purchasing lots and homes to constructing or improving properties. To qualify, applicants must be active Pag-IBIG members with at least 24 months of savings, not exceed age limits, and have a clear borrowing history with Pag-IBIG.

The application process is straightforward, involving eligibility checks, document submission, and repayment, starting one month after credit release. Recent updates include efforts to make housing credits more accessible to more Filipinos, including OFWs, by lowering interest rates and simplifying requirements. This initiative represents a significant step towards affordable homeownership, with recent approvals of P20 billion in loans underscoring the program’s impact on Filipino families’ aspirations for a place they can call home.

pag-ibig housing loan

What is the Pag-IBIG Housing Loan?

The Pag-IBIG Housing Loan is a program that enables Filipinos to finance their dream homes at very affordable interest rates. Whether you’re looking to buy a lot, a house and lot, or a condominium unit, or even if you want to construct or improve your home, Pag-IBIG offers up to P6 million in financial assistance.

Significance of the Loan Program

The Pag-IBIG Housing Loan plays a crucial role in Filipino homeownership by providing access to financing with favorable terms.  Pag-IBIG Fund, a government-backed institution, offers credits at lower interest rates compared to traditional banks, making homebuying more affordable. This is particularly significant considering the high housing backlog in the Philippines, estimated at around 6.7 million in 2017.  Furthermore, Pag-IBIG caters to various income brackets through programs like the Affordable Housing Loan, specifically designed for minimum wage earners, addressing the needs of a wider population and potentially fulfilling the right to adequate housing enshrined in the Philippine Constitution.

Legal Basis

Pag-IBIG Fund’s authority to offer housing credits is grounded in Republic Act No. 9679 or the Home Development Mutual Fund Law of 2009. This act expands Pag-IBIG’s capacity to provide Filipinos with affordable housing credits, ensuring that even modest earners can afford to own a home.


  • Borrow up to P6 million: You can apply for a loan amounting to as much as P6 million, depending on your needs and qualifications.
  • Low-Interest Rates: Enjoy some of the lowest rates on the market, making your monthly payments more affordable.
  • Flexible Purposes: Whether purchasing, constructing, or improving a property, Pag-IBIG has you covered.

Eligibility / Qualifications

To be eligible for a housing loan, applicants must:

  • Be an active Pag-IBIG member with at least 24 months of savings.
  • Be not more than 65 years old at the time of loan application and not more than 70 at the time of its maturity.
  • Have the legal capacity to acquire and encumber real property.
  • Not have any Pag-IBIG housing loan that was foreclosed, cancelled, bought back, or voluntarily surrendered.
  • If with an existing Pag-IBIG Housing account or Short Term Loan (STL), payments must be updated.


The requirements for a housing loan include:

  • Housing Loan Application form with recent ID photo of borrower/co-borrower (if applicable).
  • Proof of income (e.g., Certificate of Employment and Compensation, Income Tax Return, Payslip).
  • One valid ID (photocopy, back-to-back) of the Principal Borrower and Spouse, Co-Borrower, Seller, and Developer’s Authorized Representative (if applicable).
  • Additional documents based on the purpose, like Transfer Certificate of Title, Tax Declaration, and Vicinity Map.

Step-by-Step Guide on How to Benefit from the Pag-IBIG Housing Loan

  1. Check Eligibility: Confirm that you meet all the eligibility criteria.
  2. Choose Your Loan Purpose: Determine the reason for your loan and ensure it falls within the allowable purposes.
  3. Complete the Requirements: Gather all necessary documents as listed above.
  4. Submit Your Application: Apply via Virtual Pag-IBIG or at any Pag-IBIG Housing Business Center or branch near you.
  5. Loan Processing: Await confirmation and further instructions once your loan application is processed.
  6. Start Paying Your Loan: Begin your monthly payments one month after the loan release, using your permanent Housing Loan Account Number.

Disclaimer: While the prospect of owning your home is exciting, it’s essential to approach this journey with diligence and care. Make sure to keep your financial health in check and stay committed to your loan repayments.

Recent Updates

Marcos Urges Pag-IBIG to Increase Access to Housing Loans

In a recent statement, Marcos called on Pag-IBIG to make housing loans more accessible to provide affordable housing options for Filipinos. By lowering interest rates and easing loan requirements, Marcos believes that more people will have the opportunity to own their own homes. (Manila Standard)

Pag-IBIG Approves P20B Worth of Housing Loans

In a recent development, Pag-IBIG, the country’s leading housing finance institution, has approved a massive P20 billion worth of housing loans. This positive move aims to support more Filipinos in their pursuit of homeownership, providing affordable financing options and helping address the housing needs in the Philippines. With this approval, many aspiring homeowners can now take steps towards achieving their dream homes. (Manila Times)

Pag-IBIG Fund Strengthens Partnership to Provide Affordable Homes for OFWs

Pag-IBIG Fund, in collaboration with the Department of Migrant Workers and Department of Human Settlements and Urban Development (DHSUD), is dedicated to assisting land-based overseas Filipino workers (OFWs) in accessing affordable housing loans. With over 1.4 million active OFW members, the intensified partnership aims to educate and inform OFWs about the 4PH program for OFWs, including the housing loan program. Pag-IBIG Fund has already released over P45 billion in housing loans and P15.82 billion in cash loans in the first four months of 2023, benefiting thousands of members. (The Manila Times)

Pag-IBIG Fund Lowers Housing Loan Interest Rates to Make Homeownership More Affordable for Filipinos

In an effort to make homeownership more affordable, the Pag-IBIG Fund has lowered interest rates on its housing loans. The new rates, which took effect this month, range from 6.25 percent for a three-year repricing period to 9.75 percent for a 30-year repricing period. These reductions are made possible by the agency’s solid financial position and high collection performance. (The Manila Times)

Video: Requirements For Pag-ibig Financing (Home Loan Requirements in the Philippines)

If you’re planning to apply for a home loan with Pag-ibig or the Home Development Mutual Fund, it’s essential to know the necessary requirements. This comprehensive list will guide you through the documentation needed for a successful application.


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