Pag-ibig Housing Loan

Pag-ibig Housing Loan.   Stuff you need to know about Pag-IBIG (HDMF) housing loan that isn't mentioned on their site and instead tackled in the loan counseling session.
As I mentioned in my earlier post, there's a few important things that are left unsaid on the Pag-IBIG official site. It's instead discussed in the loan counseling session that you're required to attend first. (note: I've read elsewhere that it isn't required anymore. I would still attend though, because of the info shared there that might not be on their site.)

I haven't attended myself, so I relied on two coworkers who have attended and loaned from Pag-IBIG. (I'll post an update once I am able to attend the seminar/orientation)

The first thing you'll need to be aware of is that their records might not be centralized. This can be a hassle if you've worked in different parts of the Philippines - or even just different cities in Metro Manila. You'll have to go to each branch and ask them to forward your contributions and records to your current Pag-IBIG/HDMF branch (the one you are loaning from; coincidentally, I'm told you'll have to loan from the office with jurisdiction on the property you are buying).

Presumably, Pag-IBIG can tell you where to go based on your employment history. You can call up these offices and confirm that you have a record there. I'm not sure if the forwarding can be requested online or over the phone, though.

You need to get your records updated as it will impact the amount you can loan. Which brings us to a few of important points...

First, the amount you can loan depends on your monthly contribution. So if you would like to loan Php1M, your monthly contribution needs to be around Php500. HDMF contributions are usually set at no more that Php100, so you'll have to request your employer to increase it.

Second, you must pay in advance the contribution for two years when you loan. So for Php1M, you pay Php12,000 in advance.

The rest is through salary deduction.

Third, if you miss 3 consecutive monthly payments, your mortgage could get defaulted and Pag-IBIG may start the foreclosure process.

Aside form that, there's a couple of quirky things: when you take out a loan, you pay a Php1000 processing fee. If your loan actually gets approved, you pay an additional Php2000. (Parang padulas lang, pero legit.)

Additionally, you may have read about Mortgage Redemption Insurance (MRI). If the principal borrower dies, the loan is covered in full by this insurance. (If two people took out the loan, only one can be the principal borrower. So if the secondary passes away, the loan just continues.) That's the good news. The semi-bad news: it's an additional yearly premium you have to pay. The premium is also incorporated in the monthly payment.

And for MRI, along with other Fire and Allied Perils Insurance, the premium is prepaid upon loan take out. That means you pay the first year's premium as you take out the loan.

So the real "bad news" is that there is a considerable upfront cost when buying a property through a loan - insurance premiums, processing fees, other fees (possibly: attorney's fees, taxes, doc stamps, etc.) and the down-payment (since you can only loan up to 80% 90% of the total asset value).

It's unavoidable though. The same expense is incurred through bank loans, and probably through SSS as well.

As for the other details...instead of an information dump, here are a couple of videos we can watch instead. It's a bit dated (2012), but the details should still be correct.

Did I get something wrong? Any info to add? Let me know by leaving a comment below.

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  1. Really? The MRI has to be renewed yearly? I always thought it was incorporated in the monthly payments. Check out this comparison between Pag-ibig and bank loans:

    Although I realize that the insurance section under Pag-ibig doesn't specifically say MRI and it's not an official publication.

    Must research some more! However, I really think that it's already included in the monthly payments. Otherwise, shouldn't there be a notice of some kind? And isn't an MRI automatic in all housing loans?

    1. Hi Jill,

      Thanks! I guess it is incorporated in the monthly payments.

      My bank loan's MRI is paid yearly, I wrongly assumed it would be the same with Pag-ibig. (and yes, an MRI is automatic in all housing loans)

    2. Ok, but I'll ask just the same when I get the chance. I'll update you once I have.

  2. I went to PAGIBIG Makati branch to process my overseas employment certificate (OEC). beside the counter, I overheard few loan applicants. the way I understood their process is, you can have your record verified by Makati branch (or is Makati their HQ?,not sure). anyway, dahil plan ko rin mag loan, I took advantage of my visit. so kukuha ka ng home loan form sa kanila, attached therein ay checklist ng requirements and the verification slip. I went to 7th floor, gave my filled up verification slip, have my record checked tapos tinatakan na nila ng 'approved' for applying a loan. then they advised me na pede na akong pumunta sa concerned branch kung saan may jurisdiction ang property na gusto ko i-loan to submit the requirements and formalize the process.
    so i was under the impression that pagibig in Makati has the 'centralized record' because they've seen my account when in fact i never worked in Makati.
    all these are based on my personal inquiry, cant say its the SOP naman. worth checking din.

    1. Wow! Maybe they have centralized records now.

      Thanks for the intel! :D

    2. If that's the one in Petron Tower then that is the main office.

      I went there recently with my mom to get the original copy of her condo certificate of title after she paid off the mortgage. Super efficient service. Very impressive!

  3. I have dealt with other government agencies. This is the first time I have read such a positive comment. May the other government agencies deserve such kudos in the near future! Leadership in the agency must be a major factor in such an impressive performance.

  4. hi I'm kath from q.c.,

    ask ko lng po yung mother ko kasi gusto niya ma claim ulit yung lupa niya na kasama sa for closing na ng pag ibig, then may pinababayaran sila na insurance na 8k para ma claim namin ulit yung lupa plus amilyar na 5k. compulsary po ba ang pagbayad ng insurance or pwedeng hindi?

    1. Kung yan yung Mortgage Redemption Insurance, compulsary talga yan. At pabor dn sa inyo. kasi yan yung insurance na in case may nangyari sa may-utang/nagbabayad yung lupa automatic bayad na at mapupunta sa mga tagapag mana.

  5. Thank you very much for this on-line system. Ask ko lang, whether kong pwd po mag on-line inquiry ngayon ang ating loan status on Housing? Thanks

  6. Gud pm poh...magimform po lang kung ilang taon ba pede mag loan ng .housing magkano po ba ang pwde iloan ng OFW ..pwde na po ba yung 3yrs..plzzzz..hopefully ur reply....thank u....

    1. Hi Anonymous,

      Sorry for the late reply. I'd like to be helpful, but in this case it's really best if you check directly with Pag-Ibig.