1. GUIDELINES ON THE PAG-
IBIG FUND END-USER HOME
FINANCING PROGRAM

2. 1. COVERAGE
1.1 All accounts taken out beginning
April 1, 2009 and onwards.
1.2 All accounts with proceeds not yet
fully released as of April 1, 2009,
except for accounts with retention
due to lacking requirements

3. LOAN PURPOSE
1. Purchase of a fully developed lot not
exceeding 1,000 sqm, which should be
within a residential area
2. Purchase of a residential house & lot,
townhouse or condominium unit inclusive
of parking slots
3. Construction or completion of residential
unit on a lot owned by the member

4. LOAN PURPOSE
1. Home Improvement
2. Refinancing of an existing
mortgage with an
institution acceptable

5. LOAN PURPOSE
1. Combination of loan purposes shall be limited
to the following:
a. Purchase of fully developed lot not exceeding 1,000
sqm and construction of residential unit thereon
b. Purchase of residential unit, with home
improvement
c. Refinancing of an existing mortgage with home
improvement
d. Refinancing of an existing mortgage, specifically a
lot loan with construction of a residential unit
thereon

6. BORROWER’S
ELIGIBILITY

7. On Pag-IBIG Membership
a. Not more than 65 years old at the date of
loan application and must be insurable and
must not be more than 70 years old at loan
maturity
b. Has the legal capacity to acquire and
encumber real property
c. Has passed satisfactory background/credit
and employment/business checks of the
developer and Pag-IBIG Fund

8. On Pag-IBIG Membership
a. Must be a member for at least 24
months at the time of loan applications
b. A member that are still short of the 24-
month membership requirement shall be
allowed to make lump sum payment
based on mandatory monthly
membership contributions
c. A member who has contributed for at
least 2 years shall be required to pay the
upgraded contribution rates upon
housing loan approval and onwards

9. On Pag-IBIG Membership
a. Has NO Outstanding Pag-Ibig housing loan,
either as principal or co-borrower
b. Had no Pag-IBIG housing loan that was
foreclosed, cancelled, bought back due to
default, or subjected to dacion en pago
c. Has no outstanding Pag-IBIG multi-purpose
loan in arrears at the time of loan
application.

10. LOAN AMOUNT

11. Loan Entitlement based on Pag-IBIG
Contributions
Pag-IBIG Membership Contributions
LOAN AMOUNT
POP Pag-IBIG I & II
US $5 P200 Up to P500,000
250 Over P500,000 – P600,000
300 Over P600,000 – P700,000
350 Over P700,000 – P800,000
US $ equivalent 400 Over P800,000 – P900,000
at point of 450 Over P900,000 – P1,000,000
availment 500 Over P1,000,000 – P1,100,000
550 Over P1,100,000 – P1,200,000
600 Over P1,200,000 – P1,300,000
650 Over P1,300,000 – P1,400,000
700 Over P1,400,000 – P1,500,000
750 Over P1,500,000 – P1,600,000
800 Over P1,600,000 – P1,700,000

12. Loan Entitlement based on Pag-IBIG
Contributions
Pag-IBIG Membership Contributions
LOAN 1AMOUNT
POP Pag-IBIG I & II
US $5 850 Over P1,700,000 – P1,800,000
900 Over P1,800,000 – P1,900,000
950 Over P1,900,000 – P2,000,000
1,000 Over P2,000,000 – P2,100,000
US $ equivalent 1,050 Over P2,100,000 – P2,200,000
at point of 1,100 Over P2,200,000 – P2,300,000
availment 1,150 Over P2,300,000 – P2,400,000
1,200 Over P2,400,000 – P2,500,000
1,250 Over P2,500,000 – P2,600,000
1,300 Over P2,600,000 – P2,700,000
1,350 Over P2,700,000 – P2,800,000
1,400 Over P2,800,000 – P2,900,000
1,450 Over P2,900,000 – P3,000,000

13. Loan Entitlement based on
Capacity to Pay
a. The loan amount applied for is less than or
equal to Seven Hundred and Fifty Thousand
Pesos (P750,000.00), and the account is not
covered by a buyback guaranty;
b. The loan amount applied for is over Seven
Hundred and Fifty Thousand Pesos
(P750,000.00).

14. Supporting Documents
• For Locally Employed:
b.Notarized Certificate of Employment and
Compensation (Pag-IBIG format)
c.Notarized Certificate of Employment and
Compensation (Employer’s format) and
latest 1-month pay slip
d.Income Tax Return/Certificate of Tax
Withheld (BIR Form No. 2316) and latest
1-month pay slip

15. Supporting Documents
• For Self-Employed
Income Tax Return and Audited Financial
Statements and Official Receipt of tax payment
from bank, DTI Registration, Mayor’s Permit
• For POP Members
d. Employment Contract
e. Other proofs of income duly validated and
certified/initialed by the assigned Pag-IBIG
Information Officer shall be accepted for
evaluation.

16. INTEREST RATE
Loan Amount Interest Rate
Up to P400,000 6%
Over P400,000 to P750,000 7%
Over P750,000 to P1,000,000 8.5%
Over P1,000,000 to P1,250,000 9.5%
Over P1,250,000 to P2,000,000 10.5%
Over P2,000,000 to P3,000,000 11.5%

17. LOAN TERM
• The loan shall be repaid at a maximum
term of thirty (30) years and shall, in no
case, exceed the difference between the
present age and age seventy (70) of the
principal borrower.
• The borrower shall be allowed to lengthen
or shorten the loan term only once during
the life of the loan.

18. LOAN PAYMENT
• The loan shall be paid in equal monthly amortizations in
such amounts as may fully cover the principal and
interest, as well as insurance premiums, over the loan
period, and shall be made, whenever feasible, through
salary deduction.
• The borrower shall execute the Authority to Deduct the
monthly loan amortization from his salary, and shall
secure the conforme of his employer for the purpose.
• Pag-IBIG Fund and the employer shall enter into a
Collection Agreement stipulating, among others, that the
deduction for the employee’s Pag-IBIG housing loan
shall have priority over other obligations of the same
nature after all statutory deductions have been effected.

19. INSURANCE
• Mortgage/Sales Redemption
Insurance (MRI/SRI)
• Fire and Allied Perils Insurance
• Premium Payments
• No Evidence Limit (NEL)

20. PREPAYMENT
• A borrower shall be allowed to prepay his
loan in full or in part without prepayment
penalty, pursuant to Republic Act 7394.
• Accelerated payments – any amount paid
in excess of the required monthly
amortization shall be applied automatically
to principal, unless otherwise expressly
requested by the borrower upon payment.

21. LOAN CHARGES
• One Thousand Pesos (P1,000.00)
upon filing of the loan application,
which shall be non-refundable if the
loan is disapproved;
• Two Thousand Pesos (P2,000.00)
upon loan takeout