Applying for Pag-Ibig Fund’s Re-Pricing

Many of us, homeowners, have acquired our home through mortgage to Home Development Mutual Fund or Pag-Ibig Fund.  Pag-Ibig right now has the lowest interest rate in their housing loans compared to the past 5 years.  This is a very good time to convert your loan to the Full Risk-Based Pricing Model.  We did so last week.

We applied for conversion to Full Risk-Based Pricing Model at the main branch of Pag-ibig at Mandaluyong.  You can check the nearest Pag-Ibig branch to you if they allow processing of re-pricing.  I believe Calamba branch process re-pricing, however, the branch closest to us, Imus Branch doesn’t – reason why we need to go all the way from Cavite to Mandaluyong just to process it.

Before going to Pag-Ibig Mandaluyong, I called Pag-Ibig Imus first and asked for requirements.  Which are:

1.    Duly accomplished Application Form for Conversion to Full Risk-Based Pricing Model.  [You can get this at Pag-Ibig or ask Pag-Ibig to email you a copy].

2.    Photocopy of latest Tax Declaration – Land and Building.  [You can get this at your Municipal Hall’s Assessor Office.  I didn’t pay for anything for this, but someone said she paid Php50 at their City Hall. #Attention Red Tape].

3.    Photocopy of latest Real Property Tax Receipt – Land and Building.  [If you are religiously paying your real property tax, this shouldn’t be a problem.  But in case you are not, be prepared to pay a lot.  I think the interest per year goes as high as 20%].

4.    Php1000 processing fee.

We arrived at Pag-Ibig Mandaluyong around 930AM.  We were queued at the re-pricing counter.  Because I am worried that I will mistakenly put wrong information in the form, it was only there that I accomplished it.  Note (1) if you are married, it is advisable to go there as spouses.  The forms need to be signed by spouses and will not be processed by one spouse alone.  Note (2) please bring a photocopy of your marriage certificate and valid ids.

During checking of requirements, we were asked if we will be paying by PDCs (post dated checks) or cash.  We were confused.  Note (3) apparently, once your loan is re-priced, you will need to pay 3 months in advance of your amortization.  This is for Pag-Ibig to ensure that you are a good payer.  We didn’t bring 3 months of amortization with us (because that was not included in the requirement list).  But since the person assessing us, checked our records and knew that we are good payers (meaning: paid already weeks before due date), he allowed us to just pay 1 month.  Whew.  I honestly don’t want to go back and forth Cavite and Mandaluyong.  The person assessing us told me that it was their prerogative and job to check if applicants are responsible and can pay.

After passing the requirements, we were asked to pay for the processing fee.  We were asked to photocopy the receipts.  And wait for 2-3 hours processing.  Yay! So we don’t need to go back na talaga. 

While waiting we opted to go to SM Megamall for lunch and visit the Home Sale happening that weekend.  Both the hubby and I are so engrossed in the sale that I forgot to check my cellphone for anything.  We went back at Pag-Ibig exactly 3 hours after we left and found out that Note (4) the person assisting us texted me 1 and half hour ago that our papers are due for signing already.  Tsk tsk.

We were asked to have the papers we signed notarized (there’s a Notary Public just outside the Pag-Ibig office costing Php100).  We paid one-month advance amortization at the cashier and had the receipt photocopied.  And what a surprise!  Our monthly amortization is now lower by almost 17%.  This is a lot considering you need to pay for this amortization for years.  J 

Since our Pag-Ibig housing loan is under Full Risk-Based Pricing, and we chose 3 years Fixed Pricing Period, our monthly amortizations will change every 3 years dependent on the prevailing market rates.

If you want to know more about re-pricing, just visit any Pag-Ibig branch.