The Pag-IBIG Fund (Home Development Mutual Fund) offers some of the lowest home loan rates in the Philippines, with terms up to 30 years. Here is a practical checklist of eligibility rules and documents, current as of October 2026.
Eligibility
- Active Pag-IBIG member with at least 24 monthly contributions (lump-sum payment allowed to complete).
- Not more than 65 years old at application, and loan maturity not beyond age 70.
- Legal capacity to acquire and encumber real property.
- Passed satisfactory background, credit and employment checks.
- No Pag-IBIG housing loan that was foreclosed, cancelled, bought back due to default, or subjected to dacion en pago.
- No outstanding Pag-IBIG multi-purpose or calamity loan in arrears at the time of application.
Loan purposes
You can use the loan to buy a lot, a house and lot, a townhouse or a condominium unit; to construct or complete a house; to renovate or improve an existing home; or to refinance an existing housing loan from another lender.
How much can you borrow?
The maximum is ₱10,000,000. The actual amount is the lowest of three: what you need, your capacity to pay (the monthly amortization should not exceed about 35% of your gross monthly income), and the loan-to-value limit on the appraised property value. For example, at 6.25% over 30 years, a ₱2,000,000 loan costs about ₱12,314 a month, so you would need gross income of roughly ₱35,200. Try different amounts in the Pag-IBIG housing loan calculator.
2026 interest rates
Pag-IBIG rates depend on the repricing (fixing) period you choose: shorter fixing periods have lower rates but may change when repriced. In 2026, Pag-IBIG also offers promo rates of 4.5% and 5.75% fixed for three years for applications filed until December 31, 2026, and a 3% rate under the Expanded 4PH program for qualified socialized housing units. Always confirm the current rate table with Pag-IBIG or your developer before signing.
Documents to prepare
- Housing Loan Application form with recent photo, signed by borrower and spouse.
- Proof of income: Certificate of Employment and Compensation, latest payslips, or BIR Form 2316 / ITR for the self-employed; for OFWs, employment contract and consular-authenticated proof of income.
- Two valid government IDs of the borrower and spouse.
- Property documents: photocopy of TCT or CCT, updated tax declaration and real property tax receipt, vicinity map and lot plan.
- For construction or renovation: building plans, bill of materials and building permit.
- Marriage certificate if applicable, and a Special Power of Attorney if someone files on your behalf.
Step-by-step process
Check your contributions in Virtual Pag-IBIG, prepare documents, file at a Pag-IBIG branch or through your accredited developer, pay the appraisal fee, wait for the Notice of Approval and Letter of Guaranty, sign the loan documents, and have the title transferred and annotated before release. Processing commonly takes several weeks; incomplete documents are the most common cause of delay.
Tips before you apply
Settle arrears on other loans, keep your contribution record continuous, and keep total debt payments well below the 35% limit. Compare the monthly cost against a bank loan with the general loan calculator.