Home or the physical abode, like in many other people, is a critical element in any family’s life. Not only does it acts as a sanctuary of safety for each and every member of the household, it also acts as a shelter by which any family can grow with peace and dignity.
Many governments across the globe share the same plight about the inalienable right of each and every person to proper housing that each of these government is in moral obligation to upheld this belief.
Underpinned with fairness and justice, people, regardless of economic status, are also given this right in a manner that is applicable to each and every individual.
According to the National Economic and Social Rights Initiative (NESRI), there are seven principles that are fundamental to the right to housing, particularly to those in the United States. Namely, these seven principles are as follows:
- Security of Tenure
- Availability of Services, Materials, Facilities, and Infrastructure
- Habitability/Decent and Safe Home
- Cultural Adequacy
Accessible Housing for Every Filipino
With housing partly an emphasis that makes for dignified people, Filipinos are entitled to a quality abode that they can afford to live in.
But while this right is inherent, the issue of actually having a place to call home is a matter that is not given to many Filipinos and is the reason why there is such a thing as illegal settlers in certain areas in the countries.
Commonly, this is a pressing issue in major cities in the country. Places that were believed by unauthorized settlers to be a place where they could raise their standards of living—how wrong has been their notion.
With the government itself against people who live in the wrong places, especially those areas which affects the projection of the country’s image, the Home Development Mutual Fund or PAG-IBIG Fund was developed in order to support its contributing members with financial assistance in times of need involving their housing but at an affordable rate.
PAG-IBIG Housing Loan Over Real Estate and Banking Loans
Although many Filipinos who could afford to own their property would find no problem buying them from real estate developers or even loaning them from banks, the rate required with the repayment of the loan from these institutions are significantly higher than that of PAG-IBIG’s.
This makes the Home Development Mutual Fund to be more applicable to people of low- and middle-income bracket as they are among those who would find issue paying their dues at its proper amount and on time.
For a process that involves lending money and the promise of its return plus interest, getting a PAG-IBIG Loan is not a simple matter that is granted to just anybody who requires it.
For a loan by PAG-IBIG to be given, an existing member must meet the following requirements:
- Must have given 24 monthly contributions under any of the following programs: PAG-IBIG I, PAG-IBIG II, or PAG-IBIG Overseas Program
- The borrower must not be over 65 years of age at the time of application and must be not be more than 70 years old at the time of the loan’s maturity
- Must have passed satisfactory checking (background, employment, and credit)
- Has no existing outstanding PAG-IBIG housing loan, either as the co-borrower or principal borrower
- Has no outstanding PAG-IBIG multi-purpose loans that require payment
- No history of PAG-IBIG housing loan that were either cancelled, foreclosed, subjected to dacion en pago, or brought back due to having defaulted
How much can be borrowed?
Any qualified PAG-IBIG member can borrow a loan as much as P6 million, subject to interest rates differing between 5.5% up to 10%. For those of the low-income bracket who can only afford a Regular Housing Program, a lowered interest rate of 4.5% is imposed.
But as not every member offers the same repayment capability about the loan, the amount each member is able to borrow would be highly dependent upon his perceived capacity to pay back what is owed to him.
So, if you fall under the category of a minimum wager or a middle-income person, do not expect to borrow the P6 million amount ceiling when you know yourself that the amount is something very hard to pay for with your current means of income. You cannot cheat on this part of the application process either as there are people involved with doing background checks on you.
PAG IBIG housing loan rates
To give you an idea on how much you can borrow should you qualify for a PAG-IBIG loan based on your unique disposition, please see PAG-IBIG’s housing loan affordability calculator.
See also press release: Pag IBIG offers lowest ever 3% housing interest rate to minimum wage earners
What can you spend the money with?
Unlike a multi-purpose loan, a housing loan is specifically lent in order to assist a qualified member in his housing needs, be it as a means to pay for a house and lot, buy a townhouse or a condominium, and even home improvements.
Not only does this give the opportunity for any person to improve his family’s quality of living, the loans can also be a means by which any aspiring real estate entrepreneur can live up to their dream e.g. buy-and-sell of properties at any opportune moment.
Application Made Easier
With the aid of modern-day technology, an application for a housing loan from PAG-IBIG does not only take lesser time to process but also demands less requirements.
From the previous 27-day processing time, the time it takes to process a housing loan application as committed online is now reduced to just 20 days, a down of 7 days. In addition, contrary to the previous long list of requirements PAG-IBIG asks from applicants, the list is now diminished to just the following PAG-IBIG Loan Requirements:
- Housing Loan Application with Recent Photo ID
- Proof of Income
- One valid ID
- Transfer Certificate of Title (TCT)
- Updated Tax Declaration and Real Estate Tax Receipt
- Vicinity Map
With the aforementioned requirements submitted, the application will be immediately processed as initially seen by the early deployment of needed staffs for property inspection and the conduction of investigation about the borrower’s capability to repay his loan.
Download PAG IBIG housing loan application form here
Please read also PAG IBIG housing loan payment Guide