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Frequently Asked Questions | Q: What are the modes of Payments? A: There are several options:
About Citizenship
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? How much is the monthly contribution? What are the benefits of Pag-IBIG membership? What is the Pag-IBIG Savings Program? What are the special features of this program? When can a member withdraw his savings? What is the Multi-Purpose Loan Program? Who are eligible to borrow? How much can one borrow under the housing loan program? How does one go about the avail of a housing loan? What are the latest interest rates per annum for the loanable amounts?
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. Over P1,500 , an amount equivalent to two percent (2%) of the monthly compensation of each covered employee. 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: - Savings
- Short Term Loan
- 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
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-Refinancing of an existing mortgage, specifically a lot loan with construction of a residential unit thereon. -
Who are eligible to borrow? | | Bank FAQ
Q: How much do banks loan?
A: Generally banks require 30% to 40% buyer's equity based on the banks appraised value of the property and 60 to 70% is the loanable amount or it will be based on the borrower's capacity to pay, whichever is lower.
Q: How much is the interest rate and how long is the repayment period?
A: The interest rate varies from bank to bank, right now the prevailing rate is between 11 and 13% p.a. The repayment period is usually set by the borrower and the bank. Typically, the range is from 5 to 15 years.
Q: What are the requirements?
A: STANDARD APPLICATION DOCUMENTS
- 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)
ADDITIONAL DOCUMENTS (depending on loan purpose)
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
The above FAQ is based on frequent questions on actual emails sent to us. We will be adding more entries as we encounter more FAQs that can be more conveniently answered here. We value each email you send us and we try our best to answer them as thorough as possible. This page hopefully helps makes it easier.
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