Monday, September 21, 2015

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.



15 comments:

  1. Parang ang ganda pero confusing. hehehe!

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    1. Aw... I wish it wasnt me who got you confused. But re-pricing is such that you will change your pricing scheme. It's so good to grab the opportunity now because Pag-Ibig has a very low interest rate as in now. :)

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  2. Thanks for sharing your experience, I understood the step by step but like mommy Jen, parang confusing. Nalessen yung amortization pero magchange every 3 years. Nung nagreprice ba kayo, nabago din ang number of years ng pagbayad or same pa rin kung ano yung dati. I don't know kung ano ang mas ok, hehehe! Do we need to apply for repricing agad or pwede lang muna ask ng computation?

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    Replies
    1. Hi Michi, as I understood, by default kasi our home loans are priced na ang interest is the same for the whole loan term (say 30yrs). You will pay for the same amortization until the end of the term (if there will be changes it will be because of the interest rate naman ng MRI and FI). Sa full risk-based, what ever loan term you choose (like mine, 3yrs), you will be re-priced every loan term based on the prevailing market rates. I didnt ask for re-computation (but I think you can) because I was so sure na bababa our amortization since we had our house at 8.5% and the past 2 yrs its 6.5% interest rate. No changes in loan term years.

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  3. the other thing i liked about PAGIBIG recently, parang mas ok service nila ngayon. Well, first time i went to the Mandaluyong office, we waited for a day for the reconstructing of the loan which I think is a standard sa government offices, lol. But I think that is an improvement. Since it just took us a day to process everything. And they have a better queueing system na. :D

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    1. They have a better queuing system now. I think they are more efficient na. When we were there, queuing didn't take us long, even at the cashier.

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  4. I had our property repriced last year and they did not require for my husband's signature. Probably because I had the property named after me when I was still single. I was not required to pay the 3 months advance as well, siguro dahil I always issue PDCs as payment since noon pa? Anyway, panalong panalo ang repricing, we were able to save at least 3k per month (from previous monthly amortization). Happiness :-)

    ReplyDelete
    Replies
    1. Happiness talaga. Why didn't I know of the re-pricing last year pa...? I could have saved a lot and used it on recreation :P

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  5. Meron palang ganito. 3 yrs na ko nagbabayad for our townhouse, kung 17% off sya malaking bagay din ung price na nabawas. So pwede na kaya ko mag apply neto kahit 3 yrs pa lang naman akong nagbabayad?

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    Replies
    1. Hi Neri, I'm just not sure but I think 3 yrs is the minimum time span na you can apply na for re-pricing. You can call Pag-ibig to check. Nice lang to have re-pricing now because the interest rates are low talaga.

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    2. Hi Nerisa! Edmund here, I only knew this program after I got a letter from Pag ibig last month, May 2017. Do you think this process is still applicable and updated at present? Also, is the latest Real property tax receipt not enough considering i paid on time and updated for the last 9 years? Do I need to request for a Latest Tax declaration? Please advise. Thanks and have a great day!

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  6. Hi Nerisa! Edmund here, I only knew this program after I got a letter from Pag ibig last month, May 2017. Do you think this process is still applicable and updated at present? Also, is the latest Real property tax receipt not enough considering i paid on time and updated for the last 9 years? Do I need to request for a Latest Tax declaration? Thanks and have a great day!

    ReplyDelete
    Replies
    1. Hi Edmund, I think the process is still applicable but I highly suggest you call Pag-Ibig's main office just to be sure.

      Also, I think you really need a Tax declaration. It's easy to get one naman.

      Hope this helps

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  7. I had my housing loan on a 3year repricing scheme already. Do i still need to apply for re-pricing or is it automatic na?

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    Replies
    1. Hi Jane, as far as I know it is automatic na. But I suggest you contact Pag Ibig just to be sure.

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