Frequently Asked Questions

Q: What are the modes of Payments:

A: There are several options:

• Cash Payment;
• Bank Loan;
• Pag-Ibig Fund, SSS or GSIS Loan;
• Mutual agreement between Buyer and Seller;

Q: I am an American citizen, can I buy a property in the Philippines?

A: Foreigners can own real estate properties with condominiums titles (CCT) and own up to 40% of the capital stock of a corporation which in turn can own land but cannot directly own land in the Philippines. A lease agreement can also be entered into by a foreigner with Filipino landowners for an initial period of 50 years renewable for another 25 years.

Q: I am a natural born Filipino but I have now acquired foreign citizenship. Can I buy a real estate property?

A: Yes. Under Republic Act 9225 (Dual Citizenship Law), former Filipinos who became naturalized citizens of other countries are deemed not to have lost their Philippine citizenship, thus enabling them to enjoy all the rights and privileges of a Filipino. They only have to apply for dual citizenship.

Q: If I don't want to apply for dual citizenship, can I still own a property in the Philippines?

A: A natural born Filipino who acquired foreign citizenship is entitled to own up to 1,000 sq.m. of residential land, and one (1) hectare of agricultural or farm land, even without gaining dual citizenship.

Q: What are the steps to gain dual citizenship?

A: If you are residing in the Philippines, file a written petition at the Bureau of Immigration (BI) for the cancellation of your alien certificate of registration and issuance of an identification certificate evidencing that you are a Filipino citizen. For those living abroad, apply at the nearest Philippine Embassy or Consulate. Approval of petition usually takes only about 2 weeks.

Pag-Ibig FAQ

Who can be member of Pag-IBIG Fund?

Mandatory

With the signing of Republic Act No. 7742 all SSS and GSIS members earning P4,000 and above monthly are mandatorily covered by Pag-IBIG fund.

Voluntary

Membership to the fund is also open to:

• Private and government workers earning less than P 4,000 a month but who wish to join anyway;
• Self-Employed workers such as professionals and businessmen;
• Overseas contract workers (OCW);
• Residents and immigrants in the United Staes and Canada;
• Informal income group such as cooperative members;
• Non-working spouses.

How much is the monthly contribution?

For employees with monthly compensation (Basic+COLA) of P1,500 and less, an amount equivalent to one percent (1%) of their monthly compensation, and two percent (2%) of the monthly compensation of employees earning over P1,500.

Employers are mandated to match their employees' monthly contributions with an amount equivalent to two percent (2%) of the monthly compensation of each covered employee.

For self-employed members, monthly contribution is equivalent to two percent(2%) of their monthly gross earnings.

Under the Pag-IBIG Overseas Program (POP) ,OFWs with monthly compensation of:

• US $1,000 or less shall contribute US$20 or its peso equivalent monthly.
• Over US $1,000 , monthly contribution of US $40 or its peso equivalent.
• C$1,500 or less, monthly contribution of US $40 or its peso equivalent.
• Over C$1,500 a month. monthly contribution of C$60 or its peso equivalent.

What are the benefits of Pag-IBIG Membership? 

The Fund offers its members the following benefits:

1. savings
2. short term loan
3. Housing loan

What is the Pag-IBIG Provident Savings Program?

The Pag-IBIG provident savings program is a fast, easy and affordable way of saving for a member's future needs.

What are the special features of Pag-IBIG Savings Program? 

Pag-IBIG savings enjoy the following features:

• double or triple your money benefit
• tax-free dividend earnings
• portability of savings
• government-guaranteed

When can a member withdraw his savings?

Withdrawal of Pag-IBIG savings is allowed upon occurrence of any of the following :

• Membership maturity after 20 years
  • A member who signs up under RA 7742 (Pag-IBIG Universal Coverage Law) shall be allowed partial withdrawal after 10 or 15 years of continuous membership, provided he has no outstanding housing loan with the Fund.
    
• Retirement
  • at age 45 (early retirement plan)
  • at age 60 (optional retirement)
  • at age 65 (mandatory retirement)
• Permanent departure from the country.
• Permanent total physical disability/insanity.
• Termination from service by reason of health.
• Death of the member

-in case of the member's death, the Fund provides the legal heirs an additional P6,000 death benefit grant (DBG).

What is Multi-Purpose Loan?

The Multi Purpose Loan (MPL) Program provides immediate assistance to Pag-IBIG members who have made at least 24 monthly membership contributions which they can use to finance medical, educational, livelihood, minor home improvement, purchase of appliance and furniture, and other related need.

Under the program, up t to 60 percent of the member's total savings is extended, with interest rate pegged at 10.75 percent per annum. MPLs may be renewed upon payment of at least six(6) amortizations.

What is the Housing Loan Program? (Circ. 213)

The Housing Loan Program extends assistance to individual borrowers to finance any or a combination of the following:

• Purchase of a fully developed lot not exceeding one thousand (1,000) square meters which should be within a residential area;
  
• Purchase of a lot and construction of a house thereon.
  
• Purchase of a residential house and lot, townhouse or condominium unit, inclusive of a parking slot, which may be:
  
-old or brand new;
-a property mortgaged with the Fund; or
-an acquired asset which is disposed of through sealed public bidding, negotiated sale or Rent to Own program

• Construction or completion of a residential unit in a lot owned by the member;
  
• Home improvement;
  
• Refinancing of an existing mortgage loan with an institution acceptable to the Fund, provided that:
- the loan to be refinanced is current and updated at the time of loan application;
and
- the account reflects a perfect repayment history for at least two years, as supported by the borrower's official receipts

• Combination of loan purposes shall be limited to the following:
  
-Purchase of a fully developed lot not exceeding 1,000 sq.m. and construction of a residential unit thereon
-Purchase of a residential unit, whether old or new, with home improvement;
-Refinancing of an existing mortgage with home improvement or

-Refinancing of an existing mortgage, specifically a lot loan with construction of a residential unit thereon.

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Who are eligible to borrow?

• Must be a member under the Pag-IBIG I or Pag-IBIG II program for at least 24 months as evidenced by the remittance of at least 24 monthly contributions at the time of loan application:
  
• Must be a member under the Pag-IBIG Overseas Program (POP) for at least two years
  
• A member under Pag-IBIG I & II or the POP shall be allowed to make a lump sum payment equivalent to the required number of monthly contributions to satisfy this requirement;
  
• Under the Pag-IBIG Overseas Program (POP), must have remitted an amount equivalent to his savings for at least 12 months.
  
• Must not be more than 65 years old at loan maturity and must be insurable;
  
• Must have the legal capacity to acquire and encumber real property;
  
• Must have passed satisfactory background/credit and employment/business checks of the developer and the Fund;
  
• Had no Pag-IBIG housing loan that was foreclosed, cancelled, bought back or subjected to "dacion en pago"
  
• Must have no outstanding Pag-IBIG housing loan, either as a principal borrower or co-borrower; and
  
• Has no outstanding Pag-IBIG multi-purpose loan in arrears at the time of loan application. A member whose multi-purpose loan is in arrears shall be required to pay his arrears over the counter to update his account.
  
  
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  How does one avail of a Pag-IBG Housing Loan ?

  1. Attend a Loan Counseling session at the Pag-IBIG Office concerned

     Accomplish a Preliminary Loan Counseling Questionnaire, Husing Loan Application (HLA) and Membership Status Verification Slip. If eligible, secure checklist of requirements.

  2. Submit HLA with complete requirements. Pay a processing fee of P1,000.00 (non-refundable)
  3. Receive Notice of Approval/Letter of Guaranty and sign loan documents.
  4. Proceed to BIR and present Deed of Absolute Sale (DOAS) between owner of the property and applicant for payment of documentary stamps and capital gains tax.
  5. Proceed to Registry of Deeds (RD) for payment of transfer of tax and registration fees for the transfer of title.
  6. Proceed to Notary Public for notarization of LMA and annotation of mortgage with the Registry of Deeds (RD) and to Assessor's Office to secure new tax declaration in the name of the applicant.
  7. Secure Occupancy Permit from the Local Government Unit's (LGU) Engineering Office for Purchase of new Residential Unit (PRU), Purchase of Lot and Construction of a New Residential Unit (PLCH) and Construction of House (CH) loan purposes.
  8. Submit the following documents to Pag-IBIG office concerned:
     • Original Transfer Certificate of Title in the name of the applicant with annotated mortgage
     • DOAS with original RD stamp
     • New Tax Declaration in the name of the applicant
     • Updated Real Estate Tax Receipt (house and lot, if applicable)
     • Occupancy Permit
     • Assignment of Loan Proceeds
  9. Release of loan proceeds
  10. Start monthly amortization on the month immediately following loan take-out/final loan release.
      
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  What are the latest interest rates per annum for the loanable amounts?

  1. The Pag-IBIG Abot-Kamay Pabahay Program shall bear interest at the following rates per annum:

     Loan Amount	Interest Rate
     Up to P400,000	6%
     Over P400,000 upto P750,000	7%
     Over P750,000 upto P1,000,000	8.5%
     Over P1,000,000 upto P1,250,000	9.5%
     Over P1,250,000 upto P2,000,000	10.5%
     Over P2,000,000 upto P3,000,000	11.5%
     Such interest rate shall accrue on the basis of 365-day actual days elapsed.

     
     

     •	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 considered in default when he or any of his co-borrowers fails to pay any three (3) consecutive monthly amortizations and/or monthly membership contributions and other obligations on the loan.

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Bank FAQ

• Completely filled out application form
  
• Latest ID Photo of borrower and spouse
  
• Photocopy of acceptable ID with photo and signature (passport, driver’s license, employee ID)
  
• Latest ITR with W-2
  
• Proof of other non-salary income such as Certificate of Deposits, Stocks/Bonds Certificate, Lease Contracts showing term and monthly payments, etc.
  
• Photocopy of Marriage Contract or any applicable document to support civil status (if applicable)
  
• Owner’s Copy of Transfer/Condominium Certificate of Title (TCT or CCT)
  
• Vicinity/Location Map and Lot Plan signed by a Geodetic Engineer
  
• Floor Plan, as Built Plan or Schematic Floor Plan (if applicable)
  
• Photocopy of Bank Statements and Passbooks for the last 6 months
  
  

To be submitted if applicant is employed or salaried:
Original copy of Certificate of Employment, indicating length of service, position and annual salary

To be submitted if applicant is in business or practice of profession: Certificate of Business Registration with SEC or DTI
Articles of Incorporation and By-laws (if applicable)
Audited Financial Statements for the last 2 years
Two (2) years in-house Financial Statement and Interim Statement (when available)
Business Background/Company Profile
Trade Suppliers/Customers (at least 3 for each with contact persons and telephone numbers)

HOUSE CONSTRUCTION & RENOVATION LOANS
Floor and Building Plan, building specifications, bill of materials and construction & labor cost estimates
PURCHASE OF CONDOMINIUM
Master Deed of Restrictions
Master Insurance Policy
Mother TCT or CCT (if applicable)
PURCHASE OF TOWNHOUSE
Mother TCT or CCT (if the title of the townhouse is covered by a CCT)
REFINANCING/TAKE-OUT
Statement of Account from mortgagee bank