Pag-IBIG Housing Loan Application for OFWs: Make Your Dream Home A Reality

8 min. read By Kia Navarro on

OFWs dreaming of coming back home and own the house of their dreams can take out a loan from Pag-IBIG fund. Pag-IBIG housing loan application for OFWs is quick and simple. You’ll find yourself happily settling into your new home in no time.

The Pag-IBIG Fund is a government program that offers loans to Filipinos working both at home and abroad. The Pag-IBIG housing loan for OFWs can only be availed if you are an active Pag-IBIG Fund member.

What can we expect from the Pag-IBIG Housing Loan?

One of the advantages of Pag-IBIG home loan for OFWs is its lower repayment rate than banks or real estate developers. This means that those whose income ranges from low to middle can now buy their dream home, as they can repay the loan at a more affordable rate.

The money that is loaned can be used for the following housing needs:

  • Purchase a fully developed residential lot (or adjoining lots) that will not exceed 1,000 square meters
  • Purchase a residential house and lot, townhouse, or condominium unit, and even one that has a parking space!
  • Construction of a residential unit on a lot owned by the member
  • Home improvement projects
  • Refinancing of an existing mortgage with an institution acceptable to the Pag-IBIG Fund
  • Combination of loan purposes

(Read: Property Buying Guide for OFWs: 5 Steps To Buying Your Own Home)

What makes an OFW eligible for a Pag-IBIG Housing Loan?

REMEMBER: There is a mandatory background check for the member who wants to avail of a Pag-IBIG housing loan. You need to pass in order to be approved for the loan. The checking involves your credit, personal background, and employment status.

  • Borrower should be an active member who has given at least 24 monthly contributions under Pag-IBIG I, Pag-IBIG II or Pag-IBIG Overseas Program (POP)
  • Must not have any record under Pag-IBIG (or banks) of a housing loan that was either foreclosed, cancelled, bought back due to default, or subjected to “dacion en pago”. Dacion en pago is a Spanish term that means the borrower is giving back the mortgaged property to the lender in exchange for their discharge of mortgage debt
  • The borrower should not be over 65 years old during the time of their application, and should not be more than 70 years old at the time of the loan’s maturity
  • The borrower does not have any outstanding balances under multi-purpose loans in Pag-IBIG
  • The borrower should not have any outstanding Pag-IBIG loans either as a co-borrower or principal borrower

(Read: A Guide To Pag-IBIG Fund Registration, Claims, and Verification)

What are the OFW Pag-IBIG housing loan requirements?

  • Pag-IBIG Home Loan Application form that has your most recent ID picture
  • A certified true copy of Transfer Certificate of Title (TCT) from the Registry of Deeds
  • Photocopy of one valid ID of the borrower.
  • In case the borrower has a spouse, co-borrower or an Attorney-in-Fact, they are required to give a photocopy of their valid ID too
  • Must be able to present an Employment Contract (must have an English translation if it is written in a foreign language)
  • Proof of income. The Original Employer’s Certificate (OEC) or any other documents to prove such income as long as it is validated and certified by HDMF Information Officer that was assigned in the country you are working in  If you do not have the original copy of your OEC, a photocopy is acceptable but it needs to be duly validated
  • A photocopy of the most recent Tax Declaration and Real Estate Tax Receipts
  • A vicinity map and location plan of the property you want
  • Contract to Sell or any similar agreement between the buyer and the seller

How much can be borrowed with a Pag-IBIG Housing Loan?

Keep in mind that your monthly contributions play a big part in how much you can borrow from Pag-IBIG; it will always depend on your needs and ability to pay it back. A qualified Pag-IBIG member is allowed to loan up to six million pesos max!

The interest rate ranges from 5.5% to 10% and the repayment term is up to 30 years.

They are also considerate to those who can only afford a Regular Housing Program; the interest rate imposed is 4.5%.

To give you an idea on how much you can loan, here is a table from Coins.PH:

Monthly Contribution Available Loan amount
P200 P500,000
P250 P500,000 – 600,000
P300 P600,000 – 700,000
P350 P700,000 – 750,000
P400 P800,000 – 900,000
P450 P900,000 – 1,000,000
P500 P1,000,000 – 1,100,00
P550 P1,100,000 – 1,200,000
P600 P1,200,000 – 1,300,000
P650 P1,300,000 – 1,400,000
P700 P1,400,000 – 1,500,000
P750 P1,500,000 – 1,600,000
P800 P1,600,000 – 1,700,000
P850 P1,700,000 – 1,800,000
P900 P1,800,000 – 1,900,000
P950 P1,900,000 – 2,000,000
P1,000 P2,000,000 – 2,100,000
P1,500 P3,000,000 – 3,100,000
P2,000 P4,000,000 – 4,100,000
P2,500 P5,000,000 – 5,100,000
P2,950 P5,900,000 – 6,000,000

You can also use the Pag-IBIG housing loan affordability calculator here to see if you are qualified for the loan you are planning: (https://www.pagibigfund.gov.ph/amort/)

Through this calculator, you will be able to estimate the value of the property you are eyeing, repayment term that is convenient for you, and a fixed pricing period.

Another thing to keep in mind is that the Interest Rate is based on your chosen fixed pricing period.

Years Interest Rate
1 5.500%
3 6.500%
5 7.270%
10 8.035%
15 8.585%
20 8.800%
25 9.050%
30 10.000%

(Read: 5 Important Things To Look For When Buying Your First Home In The Philippines)

Step-by-Step Guide to applying for a Pag-IBIG Housing Loan

  1. The borrower needs to attend Loan Counseling at the nearest Pag-IBIG Office
  2. A Housing Loan Application (HLA) form and a Preliminary Loan Counseling Questionnaire (PLCQ) will be given once there. Fill up the required information. ( A medical questionnaire is given if you are above 60 years old or if you are applying for a loan larger than 2 Million Pesos)
  3. You will be asked to submit the required documents.
  4. There is a non-refundable P1,000 fee and a P2,000 appraisal fee.
  5. Pag-IBIG will review your OFW Housing Loan application. 20 processing days are required.
  6. If your application has been approved, P2,000 will be deducted from the loan proceeds. A Notice of Approval or a Letter of Guaranty will be given to OFW applicants.
  7. Once all the documents are given, you have to submit it to the property seller. You will be required to pay the Capital Gains Tax (CGT) within 90 days to the Bureau of International Revenue (BIR). Once everything is settled, you will be given a Certificate of Authorizing Registration (CAR)
  8. At the local government near the property’s location, you will be asked to pay for the Transfer Tax.
  9. The title needs to be transferred through the Registry of Deeds. An updated tax declaration will be given by the Assessor’s office and the Engineering Office will provide an Occupancy Permit.
  10. If you are using the borrowed funds for refinancing, you must present the Letter of Guaranty and Loan and Mortgage Agreement to the bank that the loan was originally processed through before you proceed to the Registry of Deeds for the annotation on the title.
  11. Original TCT under the name of the borrower with the mortgage annotation on it, Deed of Absolute Sale with a stamp from the Registry of Deeds, new tax declaration in the name of the owner, Occupancy Permit, updated Real Estate Tax receipt for the land and improvement and Assignment of Loan Proceeds must all be submitted to Pag-IBIG.

(Read: A Complete Guide To Pag-IBIG Online Services)

How do you pay back a Pag-IBIG Housing Loan?

Over-the-Counter Payment

Through Bayad Center, SM Business Centers (Savemore and Hyper Market are included), M. Lhuillier, or ECPay.

  • There will be a form you need to fill out; it will require your MID, MP2 account number or Housing account number (HAN). These can be seen in your monthly billing statements.
  • Pay the amount due at the counter
  • You will be given a receipt that will serve as your proof of payment

Credit card

You can pay online though Pag-IBIG’s website https://www.pagibigfund.gov.ph/

  • Go to “E-Services” then select “Online Payment Facility”
  • Input the following information
  • Choose how you would want to receive the payment confirmation
  • You will be shown the “Payment Summary.” Make sure that all the details are correct, then press “Submit”
  • Select what Credit Card you will use for the payment
  • Confirm all the required credit card details, and you are good to go!

Tips for getting approved

With all of that being said, here are a few tips to remember when applying for a Pag-IBIG Housing Loan:

  • Make sure your source of income is stable

A thorough background check will be done by Pag-IBIG and that includes your employment history just to make sure that you are able to pay the loan on time.

  • You should not have any outstanding balances with Pag-IBIG

If you have overdue loan payments for a housing loan or a multi-purpose loan, make sure you settle them before applying. Most of the time, Pag-IBIG declines applicants who still have outstanding balances with them.

  • Do not apply for a loan you know you cannot afford

Let’s be real, you can’t fake your way around this one. Pag-IBIG basically knows your bank account and employment status. They will not allow you to loan an unrealistic amount especially if you are not qualified for it!

  • Co-borrowers are the way to go!

You can look for partner/partners if you do not have enough finances for your dream house! Pag-IBIG allows at least two-three people to be co-borrowers. It could be your spouse, relative, in-law, etc. but make sure that the co-borrower should also have a good record.

  • Higher down payments are a bonus!

The higher the down payment, the bigger the chance you will get approved. Make sure you save up and prepare at least 20-30% of the property value.

About the author

Kia Navarro

Kia Navarro Kia Navarro still lives with her parents. She is, after all, a 24-year-old student who just happens to write content for eCompareMo, which she refers to as "the coolest company she's ever written for."