Acquiring a home of your own is the dream of most people; however, due to different situations, it can be a goal that is postponed for several years. To get closer to your destination, you can opt for IBIG’s home loan.
The Mutual Housing Development Fund, better known as Pag Fund – IBIG, offers contributing members to finance the purchase of their home at a rate adjusted to their means.
Steps to apply for an IBIG home loan
Primarily, you must prove loan eligibility for new members to the program who have at least 12 months of contributions; they can complete the required amount of contributions through a lump sum payment.
Those who have been members for at least two years and have housing loans exceeding Php 500.00 must pay the enhanced membership contribution rates when their loan is approved.
The next step is to prepare all the necessary documents for the loan; having everything in order before proceeding with the application will help you speed up the procedure. The basic requirements are:
- Three copies of the home loan application with identification photos of the borrower
- Verified tax identification number
- 3 1 x 1 copies of the ID picture
- Employee’s Statement of Good Standing
- If there is a foreign marriage, the spouse’s passport and two valid IDs with three signatures are required
- Birth certificate
- Marriage certificate
- Original labor certification issued by a notary with compensation. Only for private and local employers
- Photocopy of COEC and certificate of employment abroad
- Employer’s contract
- Original pay stub for the last three months showing the signature of human resources
- Photocopy of POEA employment contract with E-ticket
- If you have an online job, you must present proof of payment via GCASH, bank statement, or PayPal.
Likewise, before you start with the application, you can log on to the PAG – IBIG website and evaluate the requirements at the moment.
Attend the loan counseling and home inspection
As an approved pre-loan member, you will be required to attend loan counseling. The home inspection is a requirement for loan release, at which point the property should have been applied for and assumed by the applicant before loan application.
Once the above steps have been completed, it is time to claim the check; you will receive a call to pick it up at the nearest office.
The monthly amortization payment
After your loan is approved, you must continue with the monthly loan payment until the debt is paid off. There are several ways to make monthly payments; you can choose from:
Postdated check payments (PDC)
With this method, you must issue and send twelve post-dated checks to the PAG – IBIG fund when the loan is released. That way, they will cover the monthly amortization for one year.
Pay through payroll deduction
Most employees choose to pay by monthly payroll deduction; to use this method, you must send authorization to the Billing/Account Management Division and Billing/Loan Management department.
After receiving the loan, they will begin the monthly deduction of the monthly amortization; the employer will indicate this on the pay stubs.
Other payment methods
You can enter into an automatic debit agreement with the bank and pay accredited promoters with a Collection Service contract with the PAG Fund – IBIG. You can also apply to accredited collection partners.