Ultimate Guide to Pag-IBIG Fund: Everything You Need to Know in 2019, All Forms

The advantages and programs of Fund Pag-IBIG

Pag-IBIG is a large social fund of  housing lending in the Philippines that gives the opportunities to Philippine employees and workers:

  1. Get affordable housing at reduced rates.
  2. Draw up a multi-purpose loan.
  3. Accumulate savings.

Its members are citizens who work in the Philippines and pay contributions regularly. Such categories of citizens can become its participants:

  • self employed;
  • non-working spouses of fund members;
  • Filipinos working abroad;
  • cooperative members;
  • merchants.

Many pay contributions, unaware of the rights that they have thanks to it. The main advantage of Pag-IBIG Credit membership is the loan in the Pag-IBIG Fund.

Housing loan

This is the type of lending for which the fund is famous. Its goal is to provide affordable housing for every needy Filipino. By cooperating with local developers, it can offer its members lower mortgage interest rates. The long term of the loan makes payments less noticeable. This is a good way out for those workers who receive low wages and cannot expect to take a loan for real estate in a bank. But they will be able to use the loan at the rate of 3%.

These documents may be useful to you

  1. Housing Loan Application
  2. Checklist of Requirements for Pag-IBIG Housing Loan 
  3. Letter Request (Plan of Payment)

Short-term loan

The fund provides short-term cash loans on favorable terms. They are of two kinds:

  1. Loan in case of a natural disaster.
  2. Multi-purpose loan.

The first is provided to those people who have suffered from natural disasters: typhoon, floods, fire, and so on. They can get a loan at a reduced rate, which is 2 times lower than normal.

The second type of loan is provided to individuals for various needs – from household purchases to raising capital for the creation or development of a business.

Online loan calculator


Securing savings

Pag IBIG — mutual fundpag, which exists by attracting savings. Therefore, it is as well known as savings.

Every working Filipino makes monthly contributions to Pag-IBIG and thus participates in the savings program. The total annual income of a worker is made up of his own deductions and remittances from his employer.

Participants of the savings program can claim the accumulated funds in case the employee:

  • 20 years did deductions;
  • retired;
  • got disability;
  • quit his job for health reasons;
  • died;
  • left the country.

Accumulated monetary funds have advantages:

  • they are not taxed;
  • the government ensures that you get your money after 20 years;
  • you can continue to accumulate savings when moving from non-state work to private structure and vice versa.

About Pag-IBIG Fund

Under the presidential decree, the Housing Development Mutual Fund (HDMF) was established on June 11, 1978. It was called upon to solve two main tasks:

  1. Organize a national savings program.
  2. Provide an affordable program of housing purchase for Philippine workers.

On 4 June 1979, an order was issued for the merger of public and private personnel, and the name was changed to Pag-IBIG.

On July 21, 2009 the Law “On Mutual Fund of Housing Construction” was signed. It provided for compulsory membership of all workers in the Philippines, as well as Filipinos working abroad.

In 2013, the organization became a partner of the Land Registration Management. The Management opened a kiosk in the office of the organization, which accelerated the issuance of certified copies of real estate and land certificates. Now the process of applying for a loan has become easier and faster.

How deposits are calculated in Pag-IBIG

The Pag-IBIG mutual investment fund earns money just like any other: it invests contributions of its members in various financial instruments in order to multiply funds.

As it often happens, few people wonder what the contributions constitute. Let’s see how they are calculated.

  1. If the monthly contribution is less than 1 500 Philippine pesos, then the interest of monthly employee compensation will be 1%, and employers – 2%.
  2. If the monthly contribution is more than 1 500 pesos, then the interest of monthly compensation for employees and employers will be 2%.

At the same time, the minimum contribution of the employee is 200 Philippine pesos, and the maximum – 2950 pesos.

In order for a fund to issue a loan to an employee, he must pay contributions within 2 years. The employee may also pay one-time contributions for 2 years.

How to calculate the amount of the contribution based on salary? For example, an employee who has a salary of more than 5 000 pesos will be given a 2% discount. The same discount applies to the employer. The total amount represents the total monthly contribution.

To increase the amount of contributions:

  • it is enough for the employee to turn to the personnel specialist and write an agreement on his decision;
  • it is enough for an individual entrepreneur just to increase his contributions.

Requirements of the Fund

To get a Pag-IBIG construction loan, you need to confirm your income and provide a number of documents.

Requirements when submitting an application on a loan

Employee who works for an employer:

  • information about the company in which he works;
  • certificate of employment;
  • receipt of last contribution.
For a private entrepreneur:

  • latest tax return with financial report for the previous year;
  • two photos;
  • receipt of last contribution;
  • business license;
  • registration of entrepreneurial activity.
For self-employed persons:

  • a license allowing to engage in private practice;
  • bills confirming the last year’s revenue;
  • receipt of last contribution;
  • two photos.

For business owners:

  • bills confirming the last year’s revenue;
  • franchise license;
  • receipt of last contribution;
  • two photos.
For persons married to a business owner:

  • registration of entrepreneurial activity;
  • permission for private entrepreneurial activity;
  • bills confirming the last year’s revenue;
  • certificate of the unemployed, if the person is such;
  • certificate of employment and compensation of a member of the fund, notarized;
  • written consent of the spouse;
  • two photos.
For Philippine employees who work abroad

  • valid certificate of employment;
  • passport or any valid identity document;
  • receipt of last contribution;
  • two photos;
  • power of attorney for the representative who will pay the contributions.
For unemployed, married to an active member of Pag-IBIG:

  • compensation (payments) of the spouse;
  • written consent of the spouse.
For unemployed, but those individuals who want to make deposits.

  • certificate of unemployed.

HDMF housing loan requirements include:

  • filling in the ibig housing loan application form;
  • identity card with photo of borrower or co-borrower and its copy;
  • certified copy of ownership certificate;
  • the latest tax return on the property;
  • contract of sale;
  • real estate plan;
  • certificate confirming the income of the borrower.

Confirmation of borrower’s income

So that you could rely on a loan, you need to provide to organization a proof of your solvency. Depending on your employment, list of documents varies.

For workers in the Philippines:

  • notarized certificate of income from the place of employment;
  • the last income tax declaration for the past year;
  • payment sheet, and for civil servants – payroll.

For individual entrepreneurs in the Philippines:

  • income tax declaration and payment receipt;
  • commission bills confirming the revenue for the last year, indicating the name and contacts of the individual entrepreneur;
  • copy of the lease agreement and tax return;
  • confirmed copy of the transport franchise;
  • marriage certificate;
  • other proof of your income.

Any of the above documents will be suitable.

If you work abroad:

  • employment contract;
  • proof of employment with a copy of the employer’s passport;
  • income tax return filed to the host country.

Application processing fee

To get a loan in Pag-IBIG, the applicant must pay a loan processing fee. This amount is non-refundable:

  • 1000 Philippine pesos if you apply for a mortgage loan;
  • assessment fee – 2000 pesos;
  • 2000 pesos deducted when the loan is already approved.

After pag ibig housing loan payment verification, you will be able to get a loan.

Requirements for loan approval and prior to issuing a loan amount

If you want your loan to be approved, you need to provide:  

  1. Certificate or duplicate of ownership and its certified copy.
  2. New tax return and paid tax receipt.
  3. Mortgage documents:
  • loan agreement;
  • official sales contract;
  • notarized bill of exchange;
  • information about the loan agreement.

Additional requirements (only if it is applicable)

If you are OFW

If you are a Filipino who lives and works abroad, then you need to provide additional documents:

  1. Obligatory – notarized power of attorney.
  2. On request:
  • pay slip for the whole period; 
  • certificate of membership OWWA;
  • employment certificate;
  • passport;
  • residence permit;
  • record of bank transfer of membership fees;
  • business license.

For OFW borrowers over 60 years old

It is necessary:

  • medical certificate of health status;
  • result of medical examination provided before going abroad.

For borrowers over 60 years of old or for borrowers under 60 years of old

In the event that you take a loan from 2 million to 6 million pesos, you will need additional documents:

  • medical certificate of health status.

Pag-IBIG Online Registration

You can submit in HDMF multi purpose loan application form on official website of the organization.

STEP 1: Website of the Fund Vist Pag-IBIG

To register, go to the official page:


STEP 2: Go to member registration page

Go to the form filling page, for this click «Registration of the participant».


STEP 3: Enter your personal information

Select «Continue» and enter your:

last name;

first name;

middle name;

date of birth in the format MM / DD / YYYY

Enter the code from the picture and click again «Continue».

STEP 4: Fill out the application form

Step by step fill in all the requested information on the pages, so you fill out the application form.

STEP 5: Send your data

Do not forget to send your data for consideration.

Click to downloand 

  1. Pag IBIG multi purpose loan application form
  2. MPL program

How to get your personal number Pag-IBIG MID

Once the application has been registered, a permanent identification number will be sent to your e-mail, which is the reference number Pag-IBIG MID. On it you will be able to learn the Pag-IBIG online loan status.

How to pay contributions Pag-IBIG?

This question may arise for various reasons. Firstly, the fund’s offices may not be located in all cities. Secondly, many Filipinos are outside their country, for example, seamen and contract workers. The question also arises, where to pay The question also arises, where to pay housing loan from a Home Development Mutual Fund.

There are 5 ways to pay contributions or Pag-IBIG loan payment:

  1. If you work in the Philippines then your employer can independently deduct contributions from your salary.
  2. Through the office cashier. The receiving of money in this case will be instant and at the address.
  3. By bank transfer. Here you need to consider that the organization has concluded the agreement not with all banks in the Philippines.
  4. Payment through Internet banking. In this case, you also need to find out in advance whether this bank has an agreement with the organization on the transfer of funds.
  5. Opening a current account. This account can be a regular savings account, which is provided with your card or checkbook.

How to check the contribution in Pag-IBIG online

To check your contribution, you can use one of the following methods:

  1. Call the hotline, which operates around the clock: 724-4244.
  2. Send an email to  [email protected]
  3. Make a request via chat or fund page on Facebook.
  4. Visit the official website where you will find all the necessary information.
  5. Personally contact the nearest office of the organization.

Tips to maximize your benefits

Here are some of the benefits that a fund gives you.

By drawing up a mortgage, you can significantly save funds, thanks to a low loan rate.

You can accumulate money without risk to yourself, as payments are guaranteed by the government. To multiply your funds, you can increase your contributions.

Having issued a discount card, you will be able to make profitable purchases.

Pag-IBIG has a dividend program available to its members. There are high rates compared to banks.

Pag-IBIG salary loan against SSS

If we compare the salary loan, which will be issued in Pag-IBIG and in SSS, the latter is clearly losing. Let’s analyze why.

  1. Firstly, Pag-IBIG multi purpose loan amount depends on your contributions: it can be in the amount of your monthly salary or be 60 or even 80% of the savings. At the same time, the SSS is ready to give you only the amount of your salary, maximum – two.
  2. Secondly, Pag-IBIG does not have a service fee for the loan, and the penalty for overdue payment is 2 times less.
  3. Thirdly, Pag-IBIG loan processing time 2 times shorter than in SSS.

You will be given the same amount of months for loan payment in Pag-IBIG as in SSS – 12.

In conclusion, I would like to note that the Pag-IBIG fund really copes with its task of providing a profitable loan and savings to employees of the Philippines.

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