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Pag-IBIG Affordable Housing Loan: How to Secure Your Dream Home

Updated: Jan 31

Owning a home is a dream that most people aspire to achieve. It is a significant investment that provides security and stability for you and your family. However, not everyone has the financial capability to purchase a home outright. That is where affordable housing loans come in.


Table of Contents:

What is Pag-IBIG Affordable Housing Program?

The Pag-IBIG Fund's Affordable Housing Program (AHP) is a program offered by the Pag-IBIG Fund to provide affordable housing options for minimum wage earners and middle-income families. The program aims to help these families acquire their own homes through affordable financing and pre-built or under-construction housing units in Pag-IBIG Fund-accredited housing projects.


The AHP loan proceeds may be used to finance any one or a combination of the following: https://pagibigfund.gov.ph/FAQ_AHL.html

  • Purchase of a fully developed residential lot or adjoining residential lots not exceeding 1,000 square meters;

  • Purchase of a residential house and lot, townhouse or condominium unit;

    • Pre-owned or brand-new units

    • A property mortgaged with Pag-IBIG Fund; or

    • Adjoining house and lots / townhouses / row houses / condominium units.

  • Construction or completion of a residential unit on a residential lot owned by the borrower or a relative of the borrower;

  • Home improvement; and

  • Refinancing of an existing housing loan, provided, that the borrower must be regularly paying the amortizations of the said loan without any payment made beyond thirty (30) days past due for the last six (6) months from the date of application.

How to become eligible on the program?

Before you start the application process, you need to check if you're eligible for the AHP. Here are the general requirements:

  • Must be a member of the Pag-IBIG 1 Membership Program for at least 24 months at the time of application (a lump sum payment of the required monthly membership savings is allowed);

  • Must not be more than 65 years old at the time of application and is not more than 70 years old at the date of loan maturity;

  • Must have the legal capacity to acquire and encumber real property;

  • Gross monthly income which falls under the income levels covered by the loan program.

How to apply for Pag-IBIG Affordable Housing Loan?

To apply for the AHP, a member must first choose a housing unit from a Pag-IBIG Fund-accredited housing project. The member must then submit a letter of intent to apply for a housing loan, along with the necessary documentary requirements, to the developer or seller of the chosen housing unit. The developer or seller will then facilitate the application process with the Pag-IBIG Fund.


STEP 1: Once you've confirmed your eligibility, you need to prepare the necessary documents for your application. Here are the general requirements:

  • Accomplished Housing Loan Application Form (HLAF)

  • 1x1 ID photos of borrower and co-borrower (if applicable)

  • Proof of income (latest payslip, income tax return, certificate of employment and compensation, etc.)

  • Proof of billing (electricity, water, telephone, etc.)

  • Valid government-issued IDs (passport, driver's license, etc.)

  • Birth certificate/marriage contract (if applicable)

You may also need to submit additional documents depending on the specific AHP program you're interested in, so make sure to check the Pag-IBIG Fund website or inquire at their office for more details.


STEP 2: Submit your application Once you have all the necessary documents, you can now submit your application to the Pag-IBIG Fund office. You can do this in person or online through the Pag-IBIG Fund website.


Make sure to double-check all the documents you're submitting and fill out the application form accurately to avoid delays in processing.


STEP 3: Wait for the loan approval After submitting your application, you need to wait for the Pag-IBIG Fund to process your application and approve your loan. This may take several weeks to several months, depending on the volume of applications they're processing.


Once your loan is approved, you will receive a notice of approval and you can proceed with the next steps of the process.


How to fill out HLAF?

As provided on the Pag-IBIG website, below is a guide in accomplishing the Housing Loan Application Form (HLAF):

Housing loan application form
Housing loan application form

How much is the loanable amount of the Pag-IBIG Affordable Housing Loan?

In reference to PAG-IBIG Fund Circular No. 403, a qualified Pag-IBIG member may avail for a housing loan of up to Seven Hundred and Fifty Thousand Pesos (P750,000), which shall be based on the lowest of the following: the member's actual need, desired loan amount, and loanable amount based on gross monthly income, capacity to pay, and the loan-to-appraised value ratio.


1. Loanable Amount Based on Gross Monthly Income


The housing loan shall not exceed the limit for the applicable income cluster.


Cluster 1 (NCR)

Gross Monthly Income P15,000 Loanable Amount P 450,000 or

Up to the Socialized Housing Loan Ceiling

Gross Monthly Income P17,500 Loanable Amount P 750,000


Cluster 2 (Other Regions)

Gross Monthly Income P12,000 Loanable Amount P 450,000 or

Up to the Socialized Housing Loan Ceiling

Gross Monthly Income P14,000 Loanable Amount P 750,000


Gross monthly income is defined as Basic monthly compensation income plus COLA (cost of living allowance). Want to know more about employee gross income? Please read our article on What is Annual Gross income and how to calculate it?


In reference to PAG-IBIG Fund Circular No. 340, P450,000 is the Socialized Housing Loan Ceiling amount.


2. Loanable Amount Based on Capacity to Pay


The loanable amount shall be limited to an amount for which the monthly repayment shall not exceed thirty-five percent (35%) of the borrower's gross monthly income. In case of tacked loans, the individual gross monthly income of the borrower shall be considered. You may refer to Circular No. 403 for the complete details.


3. Loanable Amount Based on Loan-to-Appraised Value (LTV) Ratio


The ratio of the loan amount to the appraised value of the collateral shall not exceed the following:


Up to the Socialized Housing Loan Ceiling Loanable Amount 100%

Over the Socialized Housing Loan Ceiling up to P750,000 Loanable Amount 95%


How much is the interest rate for Pag-IBIG Affordable Housing Loan?

AHP loan borrowers will be charged with interest rate depending on their Cluster, to wit:


Cluster 1 (NCR) with Loanable Amount of P 450,000 or Up to the Socialized Housing Loan Ceiling is fixed at 3% per annum for the first 5 years of the loan.


Cluster 2 (Other Regions) with Loanable Amount P 750,000 is fixed at 6.5 % per annum for the first 10 years of the loan.


You may click this link https://www.pagibigfundservices.com/ac/ to access the Housing Loan Affordability Calculator in order to get a reference computation on your desired loan amount, the period of repayment and how long you want to lock-in your chosen rate.


Difference between Pag-IBIG Housing Loan Program and Pag-IBIG Fund’s Affordable Housing Program (AHP)


The Pag-IBIG Housing Loan Program and the Pag-IBIG Fund's Affordable Housing Program (AHP) are both housing loan programs offered by the Pag-IBIG Fund, but they have some differences.


The Pag-IBIG Housing Loan Program is a program that allows Pag-IBIG Fund members to borrow money to purchase a residential property or to finance the construction or renovation of a house and lot or a condominium unit. The loan can also be used to refinance an existing mortgage. The loanable amount for the Pag-IBIG Housing Loan Program can go up to Php 6 million, and the repayment period can be up to 30 years. The interest rate for the loan will depend on the member's chosen payment term and the loanable amount.


On the other hand, the Pag-IBIG Fund's Affordable Housing Program (AHP) is a program that aims to provide affordable housing options to low- and middle-income families. The program offers housing units that are pre-built or under construction in Pag-IBIG Fund-accredited housing projects.

The loanable amount for the AHP can go up to Php 750,000, and the repayment period can be up to 30 years. The interest rate per annum for the loan may be fixed at either 3% or 6.5% per annum.


In AanyaHR, you will no longer have to worry about your proof of income such as payslip, income tax return, certificate of employment and compensation as we have these documents available. If the employee has a signed agreement with his employer for a salary deduction of his or her housing loan, the amortizations and payment history can be viewed anytime.


Want to know more about other helpful and awesome features of AanyaHR, please send an email to customerfirst@illimitado.com or visit our website



Source: PAG-IBIG FUND


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