1. How do you know if you can qualify to be a member of PAGIBIG?

• You can be a member if you have a net disposable earning of P3,000 and above to become a mandatory member. Net disposable earnings means income after basic needs have been paid for from your salary. It is the employer who has the obligation to make sure that you are made a member of PAGIBIG. If you earn less than that amount, you can still be a voluntary member and give contribution directly to PAGIBIG. Thus, housewives and Overseas Filipino Workers can also become voluntary members.

2. What can I use this housing loan for?

• The housing loan can be used for the purchase of a lot only, purchase of a house and lot (whether the house is old or new), building a new house, extension or repair of existing structures, refinancing of an existing loan mortgage, or some combinations of the above.

3. How much is the loanable amount?

• The ceiling that a member can borrow from PAGIBIG is P2 million. But to avail of the P2 million depends mainly on your monthly contribution and your monthly income. Here's good news on loan ceilings. PAGIBIG has issued a new directive allowing members with a P200 monthly contribution (including employer's), who previously can only avail of a P250, 000 loan, to avail of the P500, 000 loan. And for the P2 million loan the monthly contribution required was reduced from P1,600 to P950.

4. What is the interest rate on the Pag-Ibig housing loan?

• Here's the best news. PAGIBIG already as the lowest housing loan interest rate compared to the banks and has recently approved an even lower rate. Before November 23, 2006, the rate for a P300,000 loan was 9 percent. It has now been lowered to 6 percent. The highest loan rate previously was 14 percent for a P2 million loan. Currently this has been lowered to 13.5 percent. This means that the monthly amortization for a P300,000 loan for a socialized house for 30 years has been reduced to P1,798.65 from P2,413.87 previously.

5. Are there any other charges?

• When availing of a housing loan, a processing fee of P3,000 will be collected. The amount of P1,000 is collected upon filing of the loan application and the P2,000 upon the release of the loan.
  
  Mortgage/Sales Redemption Insurance (MRI/SRI) is also required so that the property will be automatically paid up and given to the identified beneficiary in case the borrower dies.
  
  In the case of residential units, the borrower should also get fire and allied perils insurance equivalent to the appraised value of the residential unit or the loan amount, whichever is lower.
  
  Premium payments for the first year are deducted to the amount released (take out). The payments for the succeeding years are to be prepaid monthly together with the loan amortization.
  
  

6. What if I really can't afford the monthly amortization of the property that I want?

• Up to three persons can help in paying for a loan. However, this privilege is limited to persons of up to the first degree of consanguinity, meaning, this includes only parents of the principal borrower or his/her children.

7. Is there a more convenient way to pay my loans?

• You have any of the following options in paying your loan: over the counter (OTC) at the PAGIBIG office, salary deduction (deducted automatically by your employer), issuance of post dated checks (PDC), or auto debit arrangements with banks.

8. How do I become a member?

• Actually, if you are employed, your employer will take care of your membership. The administration or human resource staff will process everything for you. If you are self-employed, you may apply at PAGIBIG. OFWs can also become members.