How To Assume A Loan

Loan Assumption is one of the misunderstood concepts in real estate even among professionals like brokers and agents. A lot of them just don’t know how to go about it or can’t simply do it right.

While it’s true that a Pag-IBIG Housing Loan is assumable, it should be approached very carefully and with the help of a competent lawyer. Once you do it wrong, it could lead to a lot of problems, stressful situations and possibly loss of money.

If you are the one assuming the loan, for instance, one of the worst things that could happen is this: You religious pay the monthly obligation to the loan until such time that it is already fully paid. Suddenly you realize that Pag-IBIG doesn’t recognize you as the buyer and won’t transfer the title in your name. It’s like the original buyer is using “your money” to pay for his loan. How would you react if you are in this situation? Naturally, you would feel deceived. Sadly, a lot of people have been into this situation. And if you know someone who is into this, please do them a favour by sharing this article.

Here, we’ll show you two documents that you can use when assuming a loan and we also provide an sample of each.

The Assignment of Contract

This form is essentially used when one party (the original buyer) to a contract wants to assign his full interest in the contract to another party (the new buyer). In other words, nothing is changed in the contract except the fact that one party is being substituted by another.

When crafting this contract, it is important for the assignor (the party assigning the contract to another) and the assignee (the other party to whom the contract is being assigned) to agree and include an “indemnify and hold harmless” clause. Essentially, this means that the assignor releases full responsibility of the contract to the assignee.

Note: A copy of the original contract should be attached to this form and both parties (and their lawyers) should keep copies of this document.

Sample Form: Assignment of Contract

This assignment of contract is made on (date here) between (assignor name and address) and (assignee name and address).

For valuable consideration, the parties agree to the following terms and conditions:

(list your terms here)

Both parties have signed this assignment on the date specified at the beginning of the document.

(Assignor Name and Signature)

(Assignee Name and Signature)

Notice of Assignment of Contract

Sometimes a third party is involved and needs to be notified in writing when an agreement such as the one above is made. This should be the case when you assume a Pag-IBIG Housing Loan from someone else. The Notice of Assignment of Contract is a document meant for this purpose. On the part of the third party, they are now aware of the fact that a new party takes over the contract and should be the one responsible for all its benefits and obligations.

Sample Form: Notice of Assignment of Contract

Date : _____

To: (Home Development Mutual Fund)

RE : Assignment of Contact

Dear _________________:

This notice is in reference to the contract described in the attached document. (Please see the attachment.)

Please be advised that as of (date of assignment), all interest and rights under this contract which were formerly owned by (name and address of assignor) have been permanently assigned to (name and address of assignee).

Please be advised that all of the obligations and rights of the former party, the assignor, to this contact are now the responsibility of the new party to this contract.

(Name and signature of the Assignor)

Further Notes:

Always consult a competent lawyer when drafting documents of this kind. Don’t make the mistake of just relying on your broker to go about this. I’ve heard lots of stories and complaints from people who did this kind of transaction only to wind up with problems later on. Don’t be one of them.

  • marc

    Hi, I would like to ask, is Contract of Assignment the same as Deed of Assignment and Transfer of Rights? Thanks and God Bless.

    • admin


      Yes, they are basically the same. That’s the way to do it.

  • estelita realino

    I am planning to pay my housing loan in full . Where can I get its latest billing ?

    • admin


      Please request it from the branch where you got the loan.

  • Alvin

    Just wanna ask assuming that I as the assignor succesfully transferred the rights to the assignee, can I still avail of another housing loan from Pagibig?

  • chris

    is there a chance that a non-pag ibig member assume a loan?

    • admin


      This is only available to Pag-IBIG Members.

  • gideon

    how do we know if i am the only interested party engaged in the said contract? Is Pag-ibig notified with the transaction??

    • admin

      It’s the signatories who are the parties interested with the transaction. If the other guy is not interested, he should not sign.

  • rob

    My parents is selling 1000 sq.m of the 4,000 sq.m lot which is currently mortgaged at the bank. pwede ko ba ito bilhin thru pag-ibig loan lot acquisition kahit partial lang? will the proceeds be used to pay off first to the bank and the excess be given to my parents? ano po bang maging collateral ng loan, ang 1K or ang whole 4K lot, or kelangan talagang ipasubdivide para ma separate ang 1K? Thanks.


      Ask klang ho, ofw ho ako naisangla kasi yung house and lot nmin sa tao, pwide kbang gamitin ang pagibig ko n mbawi ang tittle nito,wla ho kasi akng ibng alam n pwidi eh.

  • richard


    I am selling my house that I have loaned through Pagibig. I have been paying the monthly due for more than 4 years now. A friend of mine wants to buy the house, where they will pay the amount that I already paid for the past 4 years. However, the would like to continue paying for the house via bank loan. Is it possible that the buyer can assume paying for the house via bank financing or they would need to continue paying for the pagibig loan. The reason why they want to pay for it via bank financing because the interest rates are lower, and the payment terms are shorter.

    • admin


      Yes, that’s possible. But it would be simpler and still cheaper if they use Pag-IBIG.

      • richard

        Thank you for the response.. In relation to my first question, let say I was able to transfer my Pag-Ibig housing loan to a certain bank.. Is it possible to have another person assume the bank loan? If it is possible, do you happen to know the procedure how to transfer it? Thanks..

  • donnabel grasparil

    hello po!
    hingi po ako sana ng assistance s lupa n nkuha ko dito s antique, a portion of my land which was loan thru housing loan was intentionally/unintentionally occupied ng katabi kung lote almost 15 sqm mtrs po, naghintay po ako almost 5 months for them to vacate the area but they refused to do it, nagkasagutan n kmi ng tumitira s nasabing bahay, and they attempted me that if ever they loss tder temper something would happen to me…

    • admin


      Please ask the help of your Barangay Officials or the Police in your area.

  • Gaki

    Hi po! I have a problem po. Kasi I bought the unit from a middleman. Nung nipakita ko po yung deed of sale sa developer, peke daw po. So I searched for the original owner kasi they are nowhere to be found na daw po. I found the wife of the contract owner po on Facebook and told them na ako na po yung new owner, blinock po ako. Now I am still paying the MA but I want to pay the loan in full na in about 6 years na po sana. Kaso di ko po maga guarantee na sakin mapupunta yung title kasi technically walang legal document na nagsasaad na akin na tong unit na to. Any suggestions po would greatly help.

    • admin


      The first thing you should do is stop paying for that one until you can prove the legality of the purchase. Use the help if a lawyer or your barangay officials.

  • http://howtoassumealoanpagibig anita bonifacio

    Dear sir/madam,
    I am O.F.W. employee I’m planning to apply Pagibig housing loan.
    A) what the age limit?
    b) how many yrs i should pay my loan?
    c.) how much loanable amount?
    Age 56 yrs old
    Thank you and good day

    • admin


      Please check this link for the qualifications requirements. I think you are still qualified.

  • lot mostrado

    Question: Good day! i just want to ask if it is possible to tranfers may housing loan from a bank to pagibig housing loan…if possible what should i do? and what are the requirements and procdures should i make? thanks and more power…

    • admin


      Yes, that’s possible. Please coordinate with your bank for the documents you will be required to submit to the Pag-IBIG Fund.

  • karen

    Hi! I’m an ofw.. ask ko lng po kung ano ung procedures pra makapagloan aq sa pag-IBIG para sa reconstruction ng house.. pwede k po bng ilakad mga papers dto sa sg?

    • admin


      You can start by preparing your documents while you are there, but you really have to apply here in the country at the branch which has the jurisdiction over the property you wanted to buy.

  • JEC

    Hi..OFW din po ako.
    Pwede po ba ako magpa-represent sa brother ko in applying housing loan?
    Hindi po kasi ako makauwi ng Pinas para ayusin ang loan.
    If pwede ano po ba ang pwede kong isubmit..SPA?
    salamat po

    • admin


      Yes, you can do that. There is an SPA form at the office that you can use.

  • Dionne

    Hi, got a housing loan for house construction (lot already owned by my father). I want my sister to assume the loan so I can make a new Pag-ibig loan for my own house. Two questions: (1) is this possible? meaning will i be allowed to make the second loan since the first would no longer be in my name? (2) since the loan was only for house construction, there is nothing that officially bears my name (except the loan, of course). so what should be put on the contract as being transferred? pls advise. and great &informative website. kudos!

    • admin


      I can’t give you an assessment based on the information you provided. A lot of things are still missing. My suggestion is for you to refer your case to the Pag-IBIG branch.

  • marilou

    Good day..!Ask ko po tungkol dun sa property na nabili ko po sa townsville dasma, cvt.5yrs ago na pong di nababayaran.Ngayon,napagalaman k o po sa processing ninyo na pwede po pala i loan ang equity.i have paid for full equity as down payment and 1yr 8mnths ammortization.consider na po ba ito na makakuha ako ng 50%loan under maceda law.(24 monthly payment)Not even to loan the equity. Thank you! and need more information from you..!

    • admin


      I’m a little confused with your message. But you can consult the Pag-IBIG branch where you got the loan to ask for clarifications.

      • marilou

        this is marilou.thanks for the advice.Now sabi nyo po to visit the Branch of pag ibig office to get the loan for clarification,Now.Where branch po ito pwede ako visit. sa Atrium po ba or sa Pag ibig office dito sa Justin building?Pwede po ba ito kontakin by mail? thanks and need your advice po..!

  • jeLL

    tanong ko lang po kung ano ang procedure if may iassume ako na loan. ito po yung scenario.. babayadan ko nlang sa kanila yung naihulog nila and ako nalang magtutuloy nung loan. Pero wala po akong cash to pay the full amount. ang plano ko po sana is magloan sa pag ibig ng buong amount kasama yung pambayad ko sa kanila at ituloy yung remaining yrs na huhulugan sa pag-ibig.
    pwede po kaya yun? parang ganito po kunwari ang total is 500k, 250k na nahulog nila. tapos un po ang ibabalik ko sa kanila yung remaining 250k ako maghuhulog sa pag ibig. pero since wala akong 250k onhand pwede ko po bang iloan sa pag ibig yung 500k den ibigay sa kanila yung 250k tapos hulugan na monthly yung reaming 250k? if pwede po panu ang process at anong documents ang kailangan?

    maraming salamat po!

    • admin


      Please re-read the whole article above.

  • Aryan

    Ask ko lang po kc mga 14months na akong di nakakapaghulog ng monthly ammortization ng bahay namin,pwede pba ipareconstruct un? Thanks..

    • admin


      You can try. Please visit the branch where you got the loan and inquire from there.

  • http://Pagibig Wilma

    Ask ko lang po naka loan ang housing namin sa bank pwede ko ba Ito ilipat sa pag ibis and how…ty

    • admin


      Yes. Please consult with your banker on how to go about it.

  • Joy

    Hello po sa lahat dito. May problema po ako tungkol sa towhouse na kinuha ko noong 2011. bali po ganito yun story wala kasi akong pagIbig membership so bali hiniram ko Po sa Papa ko ang pagIbig nya para lang makuha ko yung Unit na nagustuhan ko.ngayon 1yr plus na Po ang nabayad kona sa pag-ibig loan pati Po yung downpayment bali 3yrs to Pay nabayaran ko na po yung bali 2yrs. And Last Year october ay napa extend ko na Po yung bahay except paint nalang ang wala talaga. I spend already 1.7M including sa downpayment nabayaran na silbi 200t Po yun lacking pa ako ng 97t for 2014 of March ang Finish ng payment nito. Tapos yung loan started nung lastyear sa july monthly payment ay 9370 Pesos.already paid end of this Year. At nitong nakaraang Mayo lang Po nagpa member ako ng pagIbig. ang tanong ko Po pwede kobang ma assume yung under the Name of my father itong Unit na ito? Kaylangan ko pa bang gagastos ng papers? Kasi ako naman Po talaga lahat ang nag Finance. Name lang talaga ang nahiram ko dito? Ano-ano Po ba ang dapat kong gawin para mapa sa’kin yung title ng House and Lot? Medyo nag worried kasi ako although his my father . Gusto ko sanang ma Secure ko yung bahay. Pwede Kaya ako makaassume nito na hindi pa kasi ako 2yrs membership ng pagIbig? Magkano din kaya ang magastos? May matatanggap pa din ba ng pera ang Papa ko through pagIbig? Kasi parang nahulog naibenta sa’kin?ano ano Kaya mga requirements ang ipapakita? At how Long it Takes the Processing? Kasi andito Po kasi ako sa ibang bansa at uuwi ako ngayon enero nxtyr 2013. Hindi Po Kaya mahirapan ako nito? Kylangan pabang magbabayad ng tax ang Papa ko? Eh hindi nman sya mag e-earn nito kasi Akin naman talaga yun? Ang Numero lang ng pagIbig nya lang nahiram dyan? Pls. Ineed Ur help sana masagot nyo Po before i will leave the Country at alam ko na ang dapat Kong gawin. 3weeks lang kasi stay kosa pinas :( at kaylangan ko din ba ang abogado nito? Yan lang muna Po.. Salamat and best wishes! And merry xmasna rin sa inyo.

    • admin


      This one should be simpler since he is your father. Actually, this is like assuming the property from him and this is very acceptable to Pag-IBIG.

      Please visit the Pag-IBIG branch where you got the loan for more details.

  • Joy

    Kong meron din Po kayo na pwedeng ibang ways na ma suggest how can i Secure my property pls. I Need Ur advise :)) hindi ko kasi alam ang mga ganito eh:( sana Po malaman ko soon anong dapat Kong gawin at anong dapat Kong dalhin na ipapakita na mga dokumento.. Salamat Po talaga

  • Joy

    magkano Kaya estimated magastos Po kong sa process lahat ng document? Kaylangan ba talaga pagIbig member Kong iassume ko ito? What Kaya ang Easy kong makompleto ko na ang bayad ng pagIbig pwede ko ba kaagad matransfer yun sa Name ko? Or kaylangan pang magpa change sa deed of seal ba tawag dun? Yung change ng property title? Malaki ba Kaya ang magasta? Sana Po matulungan nyo ako sa mga tanong ko salamat

  • Dyey-Ahr Vergara

    I have been waiting for the result of the house and lot in Batangas Lipa City Sabang STO. NIÑO VILLA DE LIPA II, what happened to the site? Mid-November, all of the houses are still listed. Now, what I can see is only one (1) property?

    I am waiting for NOA for the phase 3 Block8 Lot37. I am ready to submit everything here on my end. I deposited 1000 on 2 October 2012 and until now no call or mail from the Branch. It is said from the seminar that it will just take 1 or maximum of 2 weeks for NOA.
    Please follow up.

    +++ Contact details removed by admin ++

  • Philip Gaspar


    Tanong ko lang. Ano po ba ang mga dapat requirements kung mag assume nang house & lot at dapat hingiin na documents. Actually po na assume na nya ang property last 2004 at ipa assume na naman nya sa akin.

    Ano po ba ang mga procedure na dapat kung gagawin?

    Philip Gaspar

    • admin


      Please read again the article written above this page.

  • dave 89

    Tanong ko lng po, may balak po akong mag pagawa ng bahay, ofw po ako, may lupa n po ako. kung mag aaply po ako ngayon pra mag loan, gaano po kya ktagal para ma approvan mtagal kya?
    Kung halimbawa ho na sa 2013 n lng ako mag papagawa ng bahay, pwede po ba n mag aaply na ako ngayon ng loan? SALAMAT PO…….

  • admin


    The loan process could take from one week to several months, depending on the complexity of your application, the property you applying a loan for, and the availability of your documents.

  • http://yahoo Denskie

    Hi po isa po aqng ofw d2 sa italy itatanong q lng po if pwedeng mg apply ng loan nagpagawa po kc aq ng bahay last year kaya po mgloloan sana aq para matubos po ung loan nmin sa banko..sana po may makuha po aqng sagot…balak q pong magloan ng 400k…salamat po

    • http://yahoo Denskie

      Wait q po reply nyo salamat…

  • lex

    how many times can I assume the pag-ibig housing loan of other members?

  • ruel

    Good afternoon po.

    I have an active 30-year PAGIBIG housing loan. The unit is a subdivision house and lot, from a developer. I have been paying actively for more than 2-years already. Now, I am planning to have it assumed by a friend of mine (also a PAGIBIG member), he is interested. We seek advise from the branch office and they told us that since the loan has been paid for already more than 2 years, it will be needing a deed of sale already. According to them, after 2-years of payment, the developer will process the transfer of title into my name. However, until now for almost a year already, the developer has not yet processed the transfer of the title. What can I do about it? can PAGIBIG pressure also the developer to process it as soon as possible? Is their a chance or possibility that my friend can still assume the said contract even without it? I needed to dispatch the property as soon as possible because it is already more than a year that we were planning to transfer the contract under my friend’s name.

    Thank you.

    • admin


      Please check also the status of title with your developer. They may have initiated the transfer process already.

      • ruel

        I am regularly inquiring from them the status, but until now, they have not yet processed it. Actually, the owner developer is busy with his other activities, that is why they dont have time yet to process it…
        Is there anything possible to do so that I can start transacting iwth my friend interested to assume the contract of my housing loan?

      • ruel

        hindi pa daw nila na-process…

  • josua arboleda

    ask ko lng po if on proces na ang loan ko?