Loan Eligibility Guidelines

The Ultimate Goal: The Pag-IBIG Housing Loan

The vast majority of working Filipinos dutifully pay their monthly ₱100 to ₱200 mandatory Pag-IBIG contributions because of one massive benefit: the Housing Loan. It offers the lowest interest rates in the country, the longest repayment terms (up to 30 years), and the most forgiving application criteria compared to commercial banks like BDO or BPI.

Core Eligibility Requirements (2026)

Before you even look at a property or speak to a real estate broker, you must ensure you tick these five critical boxes:

• Active Membership: You must be an active member of the HDMF.
• The 24-Month Rule: You must have remitted at least twenty-four (24) monthly savings under your account.
  Shortcut: If you are a new member desperate to buy instantly, Pag-IBIG allows you to pay the 24 months in a single lump sum (₱4,800 minimum) to qualify immediately.
• Legal Age: You must not be more than 65 years old upon the date of loan application, and absolutely not older than 70 years old at the loan maturity date.
• No Foreclosure History: You must have no outstanding Pag-IBIG housing loan that was foreclosed, canceled, bought back, or voluntarily surrendered.
• Account in Good Standing: If you currently have an outstanding Pag-IBIG Multi-Purpose Loan (MPL) or Calamity Loan, your payments must strictly be updated and current.

How Much Can You Actually Borrow?

Eligible members can borrow up to an absolute maximum of ₱6,000,000. However, the exact approved loan amount fundamentally heavily hinges on three distinct factors that the agency mathematically calculates:

1. Your Need: They look at the actual total contract price (TCP) of the property you intend to buy or the estimated cost of your house construction based on the bill of materials.
2. Your Capacity to Pay (Gross Income): This is the strict bottleneck. By law, your monthly loan amortization cannot exceed thirty-five percent (35%) of your gross monthly income. For example, if your gross salary is ₱30,000, your maximum monthly mortgage payment cannot exceed ₱10,500. They cap the loan amount specifically to fit that strict ratio.
3. Loan-to-Value (LTV) Ratio: Pag-IBIG usually lends you up to 80% to 90% of the property's appraised value, meaning you typically must produce the remaining 10% to 20% locally as your down payment or equity to the developer directly.

The Short-Term Need: Multi-Purpose Loans (MPL)

Sometimes you don't need a house; you need quick emergency cash. The Multi-Purpose Loan acts as a brilliant alternative to high-interest personal bank loans or dangerous loan sharks.

MPL Eligibility Criteria

To borrow liquid cash, the requirements are very similar but feature a different computational mechanic:

• You still need 24 total monthly contributions.
• You must have strictly made at least one (1) active contribution within the last six months prior to the date of your loan application.
• You must present sufficient proof of income (payslips).

How Much Cash Can You Borrow?

You can borrow up to incredibly 80% of your Total Accumulated Value (TAV). Your TAV represents the sum total of every ₱100 your employer deducted, every ₱100 they matched, and all the tax-free dividends accumulated over the years.

If you have been working for 10 years and your accumulated TAV sits exactly at ₱50,000, Pag-IBIG will happily grant you an MPL up to ₱40,000 within a few days.