Tips and Traps

5 Ways To Pay The Pag-IBIG Fund

Pag-IBIG Fund members can be grouped roughly into two:

those based locally in the Philippines, and
those based overseas (The Filipino Overseas workers, Filipino Expats, Immigrants and the sea farers)

For the first group, sending their payments and contributions to the Pag-IBIG Fund should be easy. Unfortunately, that is not always the case. Not every place in the Philippines has a Pag-IBIG branch where they can go to anytime. For practical reasons, many of these offices are still located in strategic locations of the country — like the key cities and some capital towns of the provinces. Some people are also not aware of other ways of sending their payments to the Pag-IBIG Fund.

As for the OFW’s, the reasons could be obvious. They are not here in the Philippines so this quite presents a little problem to them.

In this article, let’s explore the many ways of sending your payment to the Pag-IBIG Fund. After reading this, you should be able to learn the payment option that’s best for you. Whether you are based in the Philippines or in any part of the globe, not paying your dues and contributions to the Pag-IBIG Fund should not be an excuse anymore.

Method #1: Salary Deduction for the Locally Employed

Locally based employees are somewhat lucky that Pag-IBIG is implementing this kind of collection scheme.

The way it works is really quite simple: the employer deducts a portion of the employee’s salary for his/her monthly Pag-IBIG contribution. Philippine-based companies are already required to register with Pag-IBIG and share on their employees’ monthly Pag-IBIG contribution. These same companies will send their combined employer-employee contributions to the Pag-IBIG Fund month after month.

If an employee has a Housing Loan from Pag-IBIG, he may also request his employer to deduct from his salary an amount equal to his monthly amortization plus his membership contribution to the Fund. Take note that in case the employee has an outstanding loan with Pag-IBIG, that is solely his own responsibility to pay for the loan. That is, the employer is not anymore required to chip-in with the loan payment.

The Salary Deduction Scheme may be the most popular and preferred payment option by the employees here in the Philippines. Unfortunately, some companies don’t want to be bothered anymore especially if the employee has a loan with Pag-IBIG. If such is your case, you may want to consider the other payment options discussed on the succeeding paragraphs.

Method #2: Over The Counter Payment

Almost every Pag-IBIG Office here in the Philippines has an over-the-counter cashier where you can pay for whatever dues you may have. The primary advantage of this method is that you can be very certain that you are dealing with the right entity and that your payment really goes to where it is intended to go: the Pag-IBIG Fund.

The result is instant. Your transaction is posted sooner, if not immediately. And you also get the chance to receive the Official Receipt from the Pag-IBIG Fund with your name on it plus other details about your payment.

But this method can get a little toxic in some cases especially if you are far from the Pag-IBIG Office. You may have to do the legwork and commute to the office, or endure a long line together with other Pag-IBIG Members waiting for your turn at the counter.

If such is not possible, the Bank Payment Option discussed below may be for you.

Method #3: Bank Payments

Online Banking in the Philippines Thanks for this initiative, paying for your Pag-IBIG Fund dues is made even more convenient with Pag-IBIG’s tie-up partnership with the country’s biggest bank. These banks have the most branches scattered all over the country and even abroad so making your payment should not be a problem anymore.

Listed below are the current partner banks of the Pag-IBIG Fund.

Allied Bank
Bank of the Philippine Islands (BPI)
Land Bank of the Philippines
Metropolitan Bank and Trust Co. (Metro bank)
Philippine National Bank
UnionBank of the Philippines

If you think visiting these banks to pay the Pag-IBIG Fund is already so convenient to you, wait until you experience in action the Internet Banking Servicesprovided by the BPI and the UnionBank.

Note On Paying From The Bank:

Please inquire at the bank first if they are accredited to accept Pag-IBIG Payments (for Housing Loans, Contributions and others). The list of accredited banks may change from time to time.

As of last update, only Landbank of the Philippines (all branches) are accepting payments for Housing Loans for locally based clients.

Method #4: Using Remittance Companies, Other Agencies

Most Overseas Filipino Workers are so familiar with remittance companies. You can inquire from your favourite remittance company if they ever have an arrangement with the Pag-IBIG Fund that allows them to be an accredited agency that accepts Pag-IBIG Payments.

So far, the Pag-IBIG website has listed iRemit as one of its accredited remittance agencies.

Hint: Locally in the Philippines, you can also tap the services of SM Business Service Centers to send your payments to the Pag-IBIG Fund!

Method #5: Issue A Set of Post Dated Checks

This one is actually very simple and very handy. Sadly enough, not everyone is familiar with it.

A Checking Account, sometimes called a Current Account, is very similar to your regular Savings Account that comes with an ATM card or a passbook. With a Checking Account you will be given a set of checks, called a booklet, that you can use as payment. With each check that you issue, you write down the following details:

The Payee — the entity that you are paying to; it could be a company or an individual person
The Amount — this is the amount of money that you are paying out.
The Date — the date when you want to pay for the transaction. Make sure that you have enough fund on your Checking Account to cover the Amount on the Date that you indicated.
Your Signature – Very important. This makes a checking account much more secure on your part.

The term “Post Dated Check” (PDC) is not very familiar in other countries because that is not practiced very often, but here in the Philippines, this is the preferred choice especially by businesses, big and small.

What it means is that, you issue a number of checks with some future dates (The Date) on each one. Now, “The Payee” should only encash or deposit a check to his account only on the exact date indicated in check or some time later — and, of course, never prior to that date.

As The Payor or the issuer of the check, all you have to remember is to deposit an amount of money that is at least equivalent to The Amount you put down on the check. This one is very important because this lead to a lot of complications and even lawsuits — the main reason why people are afraid of using checks.

If you get a chance please try to inquire from your bank how you can have a checking account.

“5 Ways To Pay The Pag-IBIG Fund” is written by Carlos Velasco.

Housing Loan Preparation: How To Flex Your Financial Muscle

by Pag-IBIG Financing Admin

“Get your finances in order.”

You have probably read that statement several times on different pages of this website. Usually, it is the response we give to visitors who are asking for guidance on how to get, and eventually be approved for, a housing loan from the Pag-IBIG Fund.

The phrase is very brief but it means a lot of things, which I will attempt to elaborate here in details.
Essentially, I’ll be talking financial talks that relate to the following topics:

Employment or Business Track Record
Level of Income
Credit History

That’s it — just these three things are enough to help you flex your financial muscles so that you’ll be ready to face your loan officer. If you get them right, you’ll be smiling for making such a preparation. And take note, the same concept is applicable also to any loan application from any financial institution like the bank and credit cooperative.

Okay, let’s take them one by one.

Employment or Business Track Record

Quite simply, this is revealed by such question as, “How long have you been in business or in your current work or profession?”

The answer to this question is very important to the lending institution because it tells something about the stability of your income.

There are many ways a private lending institution can get a handle of this information. Depending on your source of income, some banks will be asking you the following:

Your contract of employment — with stated terms of contract and salary
Remittances in the Philippines (For OFW)
Bank Statements
Financial Statements for the past 2 years (for businesses)

Pag-IBIG Housing Loan Preparation Checklist In the case of Pag-IBIG Fund, one of the ways they can check this is by simply looking at your membership records with the Fund. Ever wonder why the Pag-IBIG Fund requires its members to have contributed at least 24 months of contributions? The very reason is that, they want to make sure that you have a steady source of income for the past two years. Somehow that gives them a hint of your employment record.

So the next time you are thinking about getting a loan, remember to take more time to reflect first on your employment, professional or business history. Stability in your work or line of business is the key. The longer you are in your work, profession or business, the more chances you have to being qualified for the Pag-IBIG Housing loan.

Pag-IBIG Financing Tip #1: Learn about Loan Pre-Qualification and its importance.

Level of Income

This one is very obvious. The higher your income level, the better chances of getting qualified for a housing loan, and the higher the loan amount entitlement also.

Question: If my income is P 35k per month, am I qualified for a housing loan with Pag-IBIG amounting to P 1.5 M?

Answer: Yes, but you should probably try to settle on a lesser amount of loan or strive to come up with an augmented income. Remember, your monthly amortization will also take a toll on your family’s budget. You don’t want to tie up a bulk of your expenses just paying of your home loan.

The answer to the question above is based on Pag-IBIG Fund’s Guidelines relating the income and member’s contributions to this loan amount entitlement. For more details, please check on the article entitled “How Your Income And Contributions Affect Your Housing Loan Entitlement“.

Pag-IBIG Financing Tip #2: As a general rule, you are safe if you select a loan amount and term where the resulting monthly amortization is less than 1/3 of your net monthly income.

Credit History

A borrower’s bad credit history really turns off any lending institution. Be careful about having a history of cancelled credit card because it will haunt you down once you apply for a loan from any bank in the country.

The current Housing Loan Application Form of Pag-IBIG already includes fields about the loan applicant’s credit cards. But some borrowers who have a bad credit history can simply skip on those blank items so that the Pag-IBIG staff won’t bother. But someday soon, it will become a critical part of the housing loan qualification process.

Essentially, what this means to all Pag-IBIG Fund members who want to apply for a housing loan is that, they should not make any Pag-IBIG Loan they can’t make up. Any unpaid loan you have made with Pag-IBIG can definitely affect any loan application you will make with the Fund.

Pag-IBIG Financing Tip #3: Don’t be careless even on small amount of loans. It can make or break your reputation with the Pag-IBIG Fund.

Forget About That Dream House, Buy A Functional House Instead

by Pag-IBIG Financing Admin

Have you ever entertained that thought of buying a home of your own?

If not yet, beware! It’s one of those nasty things that could give you sleepless nights… next only to Facebook.

From the design of the house and the size of the lawn, to the number of rooms and the kind the furniture to buy, we all want to have the best house as much as possible.

Large lawn with a nice garden, a 3-car garage, a relaxing view of the city, friendly neighborhood, spacious living room, sound-proof entertainment room for the guest, large kitchen for the chef in you, close to downtown, and finally just within budget.

There’s just one problem: You can’t have it all – especially if you factor in the money, money, money.

A Dream House Is Good, But…

Whether you like it or not, everything comes with a price. If you want to have a high life and experience the most luxurious living on earth, you have to be ready to pay for it.

Want to buy your dream house?

Sure! But first, wouldn’t it be nice if you reach the level of income that you have been dreaming about?

A Functional House — Your First Home To Call Your Own

house plan - bungalow The wise buyer keeps everything in proper perspective. You want to be able to enjoy living in your house with your family so that eventually you can call it a home. And at the same time, you don’t want it to be too much of a drain on your finances.

Of course that’s possible. But first you need to wake up from dreaming about your “dream house”. Getting a reality check and thinking about owning a functional house that fits your needs and your budget is far more rewarding.

Second House As Dream House? Yes, Way!

Forget about that dream house, especially if you are just buying your first home. You can always buy that dream house later, or get to build a custom-designed one, once you are able to afford it.

First things first: you need a functional house.

To this end, let the following tips guide you along the way.

Tip #1: Your Budget — Buy A House That You Can Afford.

That means you have to work on your budget. If you are like most real estate buyers, you would probably need a housing loan to purchase the house. Thanks to Pag-IBIG Housing Loan, that should not be a problem.

You need to determine how much you can comfortably set aside each month and send it to the mortgage company – that’s the Pag-IBIG Fund or your favorite bank. A good rule of thumb to follow is that, your monthly amortization should not be more than one-third of your gross income. If you want to be really safe, use Net Income instead of Gross Income — that’s even better. If you are a two-income family, it’s best if you can use just one income to cover the monthly amortization expense.

It may come as a surprise to you, but one of the mistakes made by real estate buyers is buying a house they cannot afford.

Yes, you read it right. It’s possible to buy a house that you can’t afford. And that involves being dishonest about your income and finances. But sooner or later, it’s this kind of buyer who eventually winds up eating the dust and losing the property. Avoid this kind of trick as much as possible.

Tip #2: Location – Accessible, In Good Neighborhood.

Did you know about the top three most important things to consider when buying or investing in a real property?

It’s location, location, location.

That’s called hammering it down your head. And I hope, you’re getting it so far.

A good location is one that is highly accessible to public transportation. This is especially true if you have kids who are going to school.

Another thing to consider is the property’s proximity to the amenities and facilities of your city or town. Are there malls and recreational centers nearby? How far is it from the market?

Take note that a good location could also affect the value of the property. For example, properties that are closer to the business center tend to be priced higher than those farther down the town. You need to strike a balance between this and the budget that you set.

Above all, is the neighborhood safe and flood-free? Buying in a good neighborhood is one of the keys that determine whether your property will go up or go down in value.

Tip #3: House Features and Specifications – Must Be Functional

What is a functional house? Only you have the right answer to that one. After all it has to do with your needs and of those people who will be living there.

Before you even begin taking a look at a house, consider that you have the following nailed down on your list:

the number of bedrooms
the number of bathrooms and toilets
car park
single-storey or two-storey?

That’s the basic. You could go on and on with the list — things like the hot and cold shower, built-in cabinets, fancy faucets, etc. Of course, the more you have those, the more price add-ons you can expect. You need to decide at the onset if those things are necessary upon move in or you can do away without them and just have them later on when you are already living in the house.

The best part about following the suggestions above is that you get to enjoy the house and have a peace of mind knowing that you have invested on the right thing.

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“Forget About That Dream House, Buy A Functional House Instead“ is written by Carlos Velasco.

I Won PhP 850,000 in Pabahay ni “Binay” and You Too Can

by Pag-IBIG Financing Admin

Yes, you too can…

…get scammed if you are not very careful.

Let me explain.

I was supposed to be feeling lucky this morning.

The first text message I got was from a friend saying, “Thank You.”

What a lovely day! This is the kind of SMS message I’d like to read first thing in the morning, every morning. I could not be more happy than that.

A single round at the toilet and a quick tooth brush later, then… beep, beep — the Android kind of beep.

Oh, I have a new message.

The second message was an appeal to the greediness in me. The text message goes this way

D/MILLIONAIRE’S CLUB OFFICE OF THE PHILS., nforming u dat ur cel# Won!, in PABAHAY NI “BINAY” 2011!, Worth, Php850,000, DTI-NCR permit# 1603s11, Pls.call me now!!..I’m Atty. VLD.

Note: I intentionally put only the initials of the lawyer’s name (that’s VLD) used by the sender to protect his identity and reputation. I have not heard of the lawyer’s name before I personally believe that the scam artist could be using someone else’s name for obvious reasons.

The message was sent using this number: +639067546784.

I have no reason to apologize exposing that number publicly on this high-traffic website. Whoever you are, shame on you!

Obviously this is scam attempt that has gone high tech, using cellular phones. By the time this article is posted on the website, it should have circulated a thousand times already waiting for its naïve victim who is apt to believe in getting something out of nothing.

Of course, nothing is free nowadays. Or, it’s best to carry that kind of mindset wherever you go.

scam money trap

These scammers might be hoping that out of the thousand messages they send, a few would actually fall prey and send them whatever they are asking, which could be

an initial deposit sent through Western Union or whatever.
a cell phone load, which is kind of funny for a member of the so called Millionaire’s Club
or your credit card information

If you care about your friend or family, please share this article to them so that at least they get warned.

Did I Get Scammed?

Of course not… I mean, not yet.

But, who knows? I could get victimized one of these days. I hope not.

This morning, I won over the scammer. I’m still feeling lucky I have my common sense intact.

So how did I know it was a scam?

Here are some points or defects that I detected from that message.

I Can’ t Win In A Raffle — Why on earth would I win in a raffle I did not even join?
D/MILLIONAIRE’S CLUB OFFICE OF THE PHIL — The Philippine Government is not stupid enough to use that kind of name in any of its agencies.
Erroneous Punctuation Marks — The message sender apparently doesn’t know how to use proper punctuation marks and therefore the whole message is Non-Official.
The cell number — This is just like any ordinary cell phone number. Big companies and government agencies are using specially reserved numbers for official notifications and correspondence.
“Please call me now!” — What? I call you? Wow, here’s a first-class jerk… a member of the Millionaire’s Club, but… he can’t even afford to give me a quick phone call to inform me that I won in a raffle, which I did not even join.

It’s possible that you, or someone you know, could be getting this kind of SMS message.

Again, please share this page to someone you care. You don’t get to see this kind of article in any place.

Another Note: This is a scam alert in general. But since it uses the name “Pabahay Ni Binay”, it gets mentioned here in this website, which is primarily focused on Pag-IBIG Financing. This is in line with our intention of helping our site visitors get educated about the Pag-IBIG Fund and its programs and services.

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This article is written by Carlos Velasco.

5 Great Tips For The First Time Pag-IBIG Home Buyers

by Pag-IBIG Financing Admin

This article is intended for the first-time home buyer who wanted to buy a house using Pag-IBIG Financing.

Maybe you are still single and you already wanted to get a house before getting married. (Well, this was the route that I followed.) Or, maybe you are newly wed and you decided that you want to live separately from your parents. Believe me, there’s no substitute to the feeling that you are living on your own home.

A Pag-IBIG starter home — your first home — may not be the most impressive home in town. That’s okay. Forget about the Joneses. Like your puppy love, don’t ever think that it will become your dream home. Rather, treat it as a nest egg that allows you to slowly build your investment (hedge against inflation) while literally having a roof over your head.

Buying your first home through Pag-IBIG is so easy if you take note of the following tips offered here.

Tip #1: Work With Your Real Estate Professional
By real estate professional, in this context, I’m referring to the real estate broker or agent who is directly selling the house.

House From The Up Movie -- A Nice Starter Home You may think that getting the assistance of a real estate agent will make the property more expensive. Whoever told you that must be very ignorant of the whole process.

Here’s what you should know: The real estate professional can’t change the selling price of the property that is owned by the Developer. That is, they can’t markup the price nor can they offer a discount. The selling price and discounts are completely dictated by the Developer’s Marketing Team and the agent can never, ever change that price.

Using a real estate professional right from the start saves you from a lot of headaches associated with the home purchase. For one, the guy is a good source of information such as the following:

The project
The property
The financing schemes
Special promotions and discounts
The materials used,
The move-in process

And if you are using Pag-IBIG Financing, your real estate agent should be able to help you cut through the bureaucracy in the Office.

Tip #2 : Buy A New House

Avoid foreclosure properties or properties that are for assume. Most of these properties are inherently problematic. You don’t want to find yourself catching someone else’s problem, do you?

Many foreclosed properties are so cheap you are tempted to jump on the deal immediately. Not so fast. This may be one of those cases where cheap could actually turn out to be very expensive due to probable renovations. If renovations are needed, we can point you towards reputable contractors like Art Construction.

As much as possible, make sure you are the first owner. Of course, as time goes, newer homes will become harder to find. If that’s the case, make sure that the Land Title is clean.

Tip #3 : Buy From A Legitimate Real Estate Developer

Never, ever deal with a fly-by-night real estate developer. But the crooks have a way of putting on the mask in such a way that you can’t detect the devil’s intentions. Here’s where common sense becomes a useful tool at your disposal.

At the very least, a legitimate Real Estate Developer:

Has complete Business Permits and Licenses to operate in that line of business.
Issues an Official Receipt from the Bureau of Internal Revenue.

Some good points to keep in mind:

Check the track record of the Developer – especially its past projects.
Make sure they are accredited by the Pag-IBIG Fund. (only if you intend to use Pag-IBIG Loan)
Check the License To Sell and Development Permit – they should have both.

Tip #4 : Make Sure You Have Your Finances In Order

Here’s a handy checklist:

You are currently an active Pag-IBIG member with at least 24 months contributions
Your employment history is impressive
You have enough salary/income to cover the monthly amortization

Tip #5 : Save Enough For The Down Payment

The greatest hurdle most real estates buyer ever faced is coming up with the down payment. Many are surprised when they find they don’t have enough cash to cover the outright cash payment required of them.

The down payment, sometimes called equity, is usually 10% to 30% of the selling price. And almost always, it is to be paid one-time about one month after placing the Reservation Fee. So one of the first problems you should think about is the amount of cash you need to raise for the down payment.

Down Payment Tip: Ask your real estate agent if you can defer the payment of the down payment to, say, 12 months. This should be easier on your pocket.

“5 Great Tips For The First Time Pag-IBIG Home Buyers” is written by Carlos Velasco.