Puede ang Pag-ibig Housing Loan Pasalo sa Pag-ibig Fund, at magagawa ito sa dalawang paraan:
- Diretsong Pasalo — Itutuloy ng Sasalo ang pagbabayad ng Loan ng Nagpapasalo. Walang mababago sa mga documents.
- Pag-ibig Repurchase — Ita-transfer ang Title to name of New Borrower or Buyer (yong sasalo)
Take Note: Ang Pag-ibig ay pumapayag lang sa Repurchase kung meron nang 2 years or more na nagbabayad ang Original Borrower sa Pag-ibig.
Anong Pasalo ang mas maganda?
Ang Diretsong Pasalo, mas mabilis, walang masyadong hassle. Ang disadvantage nito ay kelangan mong gumawa ng mga documents na magiging VALID pa rin paglipas ng panahon. Make sure na acceptable sa Pag-ibig ang mga documents kapag iki-claim mo na ang Title. Dapat meron kang proteksion halimbawa mamatay yong Seller o yong asawa ng Seller bago mabayaran ang Pag-ibig loan at ma-transfer ang title to your name. Meron ka dapat proteksion sa mga claimants o heirs ng Original Borrower.
Isa pa, malaki ang possibility na tataas ang mga taxes at fees sa panahon na ita-transfer mo na ang title to your name.
Ang Pag-ibig Repurchase, mas matagal dahil maraming ipa-process, at gagasto ka agad ng malaki, kasi magbabayad ka na agad ng mga taxes at fees. Pero ito ang mas sigurado. Aprubado ng Pag-ibig ang transfer at kasama mo sila sa processing. After a few months, ang pangalan mo na ang nasa Title.
Dito sa recent Repurchase namin, inabot kami ng 9 months, kasi ang daming holidays (Christmas, Holy Week, mga holidays na naging long weekends). At meron din kaming delays due to family and work schedules.
Processes and Requirements for Pag-ibig Repurchase
Initial Talk with Nagpapasalo (Seller)
Magkano ang gusto ng Seller na Total Cash payment sa kanya? Magkano ang total balance sa Pag-ibig?
Sino ang magbabayad ng Capital Gains Tax at Documentary Stamp Tax for Real Estate Sale?
Magkano ang gusto niang paunang bayad habang wino-work out mo ang Pag-ibig Repurchase?Hanggang kelan sia magbabayad ng current monthly amortization nia? At anong buwan ka magsisimulang magbayad? Requirement ng Pag-ibig na ituloy ang pagbabayad ng current monthly amortization habang pina-process ang Repurchase.
At kelan mo puedeng i-possess ang property?
Tanungin mo ang Seller kung okay sa kanya na magbibigay ka lang ng paunang bayad kapag na-appraise na ng Pag-ibig ang property at na-approve na ang loan application mo. Para kung hindi kayo magkatuluyan, yong Pag-ibig appraisal fee na 1k lang ang mawawala sa yo.
Yes, kahit na-appraise na years before ang property, i-appraise uli ng Pag-ibig para sa iyong loan application.
Documents You Need to Ask from Nagpapasalo (Seller):
Photocopies muna ang hingin mo, pero sabihin mo na kapag meron nang initial Notice of Approval from Pag-ibig, kukuha sila ng mga bagong Certified True Copies ng title, tax declarations at tax clearance.
- Title
- Tax Declaration for Land
- Tax Declaration for Building
- Tax Clearance
- Real Estate Tax Payment Receipt for the Current Year
- Latest bill from Pag-ibig or statement of account from Pag-ibig
- Copy of Seller’s Government ID on bond paper with 3 signatures
- If married, Government ID of spouse on bond paper, with 3 signatures
- Para ma-sure mo na okay ang utility payments, lalo na kung tenants ang nakatira sa property, ask for latest water bill, electric bill and HOA bill
Prepare your Contract to Sell or Offer to Purchase
Based sa napag-usapan nio, gumawa kayo ng Contract to Sell or Offer to Purchase. Puedeng hindi i-notarize. Sign nio lang. Okay lang sa Pag-ibig na hindi notarized kasi initial processing pa lang naman.
Prepare Initial Pag-ibig Home Loan Application Documents
Ito ang mga initial documents na kelangan ng Pag-ibig:
- Pag-ibig Housing Loan Application with recent ID photo of borrower and co-borrower if applicable (2 copies). Download here application form for borrower; for co-borrower
- Proof of Income (notarized Certificate of Employment and Compensation, and Latest ITR or certified true copy of latest one-month Payslip; see here for other proofs of income)
- Contract to Sell or similar agreement between Seller and Buyer, 1 original copy
- Transfer Certificate of Title, certified true copy. For condo unit, present TCT of the land and Condominium Certificate of Title, certified true copy.
- Tax Declaration for Land and for Building, updated
- Real Estate Tax Receipt for the current year, photocopy
- Vicinity map or sketch map showing landmarks leading to the property
- One Valid ID of borrower and spouse, co-borrower and spouse, seller and spouse, attorney-in-fact if applicable. Photocopy front and back of ID on bond paper and sign 3 times; one bond paper for each person
- Authorization by Applicant for Pag-ibig to Conduct/Credit Background Investigation (sample here)
- Health Statement, if over 60 years old, or if loan is more than 2 million pesos. Download form here
- Conformity on New/Subsequent Housing Availment, if with outstanding home loan with Pag-ibig as main borrower or co-borrower. Download form here
Go to Pag-ibig Office and File Your Home Loan Application
Go to Pag-ibig office that processes housing loans in your area. For Metro Manila properties, go to 2nd Floor 500 Shaw Zentrum, Shaw Boulevard, Mandaluyong City.
Dito sa initial application sa Pag-ibig office, pedeng hindi muna kasama ang Seller. Sayang din kung mag-absent sila sa work. Meron namang Contract to Sell na pinirmahan na nila plus IDs nila. Sa second visit mo to Pag-ibig, kelangang kasama na sila, kasi meron silang pipirmahan na documents sa Pag-ibig.
Kung approved ang initial documents mo, pay the appraisal fee of 2,000 pesos. They’ll tell you to wait for a message from them when the appraisal of the property will be done, after around 1 to 3 days. Make sure there’s a person at the property on appraisal day. They’ll be quick; they’ll immediately leave if no one is there to open the gate and/or door.
After the appraisal is done, wait for an email from them. It could take 3 days to a week or more. If the property is qualified, and you are also qualified, you’ll receive your Notice of Approval via email.
Go to Pag-ibig Office to Get Notice of Approval and other Documents (with your Spouse, Seller and Spouse)
This time kasama mo na ang Seller and Spouse, kasi meron silang mga pipirmahan sa Pag-ibig office. Ibibigay rin sa kanila ang Letter of Guaranty nila.
You will receive a Notice of Approval at Disclosure Statement on Loan Transaction. Nakalagay ang approved Loan Amount. Makikita mo rin dito kung meron kang babayaran sa Pag-ibig at kung magkano. Meron kasing Retention Fee (refundable after takeout). At puedeng mas maliit yong Loan Amount mo kesa sa Loan Balance ng Seller. Babayaran mo yong kulang sa susunod na pagpunta mo sa Pag-ibig.
Pag-ibig will also give you a summarized list of documents that you will prepare:
- Original copy of Deed of Absolute Sale (notarized, with BIR stamp at the back)
- CAR – Certificate Authorizing Registration with BIR form 1706 from BIR
- Documentary Stamp Tax Form (BIR Form 2000) with Tax payment receipt (bank receipt)
- Transfer Tax Receipt (original copy) from City Assessor’s Office
- Real Estate Tax Receipt for current year and Tax Clearance (original copy each) (2) from City Assessor’s Office
- Tax Declaration for land (original copy) from City Assessor’s Office
- Tax Declaration for building (original copy) from City Assessor’s Office
- Certified True Copy of TCT or CCT (2) from Register of Deeds
- Special Power of Attorney (for representative, if applicable)
- Special Power of Attorney (SPA) executed by the Seller in favor of PAG-IBIG FUND and Borrower to process transfer of title at Registry of Deeds. Sample SPA here
- Photocopy of Notice of Approval from Pag-ibig (2)
- Deed of Undertaking (by Borrower, Do not notarize) Pag-ibig format
- Affidavit of Undertaking (by Seller, Buyer will also sign, Notarize) Pag-ibig format
- Assignment of Retention Proceeds (by Seller, Buyer will also sign, Notarize) Pag-ibig format
- Deed of Reconveyance (by Buyer, Seller will also sign, Do not notarize) Pag-ibig format
- If condo unit, Certificate of management (confirmation of ownership) issued by the condominium unit administrator
Here are the steps to accomplish the documents above
Sign and Notarize your Deed of Absolute Sale
Sa time ng pirmahan ng Deed of Absolute Sale, ito na rin ang time na babayaran mo ng full ang Seller. Ibibigay na rin nia sa iyo ang Letter of Guaranty from Pag-ibig, kasi Fully Paid na siya. Pipirma rin ang Seller ng Acknowledgement Receipt para merong kang additional proof of full payment. (Sample Acknowledgement receipt here)
Kung ang usapan nio na ibibigay mo sa kanya ay cash payment plus part ng loan proceeds, hawakan muna ng Seller ang Letter of Guaranty. Puede kang magpa-xerox, of course.
Isa pang Warning! Policy ng Pag-ibig na ibibigay ang Net Loan Proceeds sa Seller. Nakasulat ito sa Letter of Guaranty. Itse-tseke ito at nasa pangalan ng Seller. Mag-compute nang maigi para walang sobra na mapupunta sa Seller. Marami namang mabubuting tao at isosoli ang sobra, pero paano kung yong Seller mo ay ayaw isoli ang sobra? Paano kung several hundred thousands ang sobra?
Meron namang remedy sa ganitong sitwasyon. Merong document na Assignment of Remaining Loan Proceeds. Ia-assign ng Seller ang Net Loan Proceeds sa Buyer. Pero magtanong sa Pag-ibig kung paano ang ganito para sure.
Dahil nakahanda na kayo sa pambayad ng taxes sa BIR, ipa-notary na ang Deed of Absolute Sale.
Sabi ng Pag-ibig, the Sale Price on the Deed of Sale must not be less than the Loan Amount stated on the Notice of Approval.
Ang basis ng Capital Gains Tax, Documentary Stamp Tax, Transfer Tax, Registration Fee ay yong highest sa tatlong amounts:
- Sales Price na nakalagay sa Deed of Sale
- Zonal Value of land and building (BIR zonal values)
- Market Value of land and building na nakalagay sa Tax Declaration.
Kapag okay na ang Deed of Absolute Sale, gather other requirements, then go to BIR.
Pay Real Estate Sale Taxes to BIR
Bring these documents:
- Deed of Absolute Sale, notarized (1 original and 2 photocopies)
- Certified True Copy of Title (issued within current or preceding quarter, 1 original and 1 photocopy)
- Tax Declaration for Land (issued within current or preceding quarter, 1 original and 1 photocopy)
- Tax Declaration for Building (issued within current or preceding quarter, 1 original and 1 photocopy)
- If lot only, Certificate of No Improvement from Assessor’s Office (not Tax Declaration for Building)
- BIR Form 1905 (for TIN no.) (1 form each for Seller, Seller’s Spouse, Buyer, Buyer’s Spouse (Spouses must have updated their married names with the BIR office where they obtained their TIN numbers. Kung malayo ang BIR office na pinagkuhanan, kausapin yong BIR officer na mag-e-evaluate ng documents nio). You can download BIR Form 1905 here.
- Copies of Government IDs on bond paper with 3 signatures each (Seller, Seller’s Spouse, Buyer, Buyer’s Spouse, Representative kung meron)
- Special Power of Attorney for representative, kung representative ang maglalakad ng documents. (1 original, 2 photocopies)
For computation of taxes, please scroll down to the last section.
Wait for the release of your Certificate Authorizing Registration (CAR). Sometimes it’s called eCAR (electronic CAR). They’ll tell you to follow up after a number of days, usually 15 working days, or more siguro, depende sa BIR branch.
Pay Transfer Tax at Assessor’s Office at City Hall
Now that you have your CAR, you can now pay your transfer tax.
Documents Required to Pay Transfer Tax: (Bring original and photocopy)
- Deed of Absolute Sale with BIR stamp
- Certificate Authorizing Registration
- Tax Declaration for land and for building
- Tax Clearance
- Real Estate Tax Receipt for the current year
Pag maaga ka, matatapos mo ito the same day.
For computations, scroll down to the last section.
Prepare required documents then go to Pag-ibig office to submit
Check the requirement list given to you by Pag-ibig (see above). Okay na lahat?
Go to Pag-ibig to submit the documents. Kung merong babayaran according to the Disclosure Statement on Loan Transaction, bring the money.
Pag-ibig will evaluate your documents. Then you will sign your Loan and Mortgage Agreement, Promissory Note, and Deed of Undertaking. You’ll also pay what’s in the Disclosure, kung meron.
They’ll tell you to wait for a message telling you when to meet a Pag-ibig officer at your city’s Register of Deeds.
Apply for Transfer of Title at your city’s Register of Deeds (RD)
Coordinate with Pag-ibig when to go to the Register of Deeds. Kasi nasa kanila yong mga documents required by RD; yong mga ibinigay mo sa kanila noong nagpunta ka sa Pag-ibig. Nasa kanila rin yong original Owner’s Duplicate Certificate of Title. Apparently, ayaw nilang ipahawak sa Buyer ang Title na ito, kasi baka nga naman mawala. Mahirap, matagal at magastos ang magpagawa ng replacement nito. Kelangan pa ang court hearing.
Documents required? See list above — yong mga ibinigay mo sa Pag-ibig.
Ang dalhin mo is your payment for Registration. Scroll down for computation.
After payment, make sure to get a copy of the receipt. Kasi kukunin ng Pag-ibig officer ang receipt. Later on, sila ang kukuha ng new Title under your name, kaya dapat nasa kanila ang receipt.
Scan mo or picturan mo ang receipt nang mahusay. You will need this receipt later on sa pag-apply mo ng new Tax Declaration.
The Pag-ibig officer will also give you the following 3 sets of documents. Napirmahan nio na ang mga ito noon sa Pag-ibig office.
- Loan and Mortgage Agreement
- Promissory Note
- Deed of Undertaking
Usually merong kasama na post-it note. Example: Merong missing data or signature on the documents, halimbawa kulang ng ID number, or merong page na hindi napirmahan.
At merong instruction: Yong mga 3 sets of documents ay ipapa-notarize. Pero huwag munang ipa-notarize. Wait for notification from Pag-ibig. Kasi puedeng magka-penalty kapag hindi nasunod ang deadline for DST payment.
Kapag nakuha na ng Pag-ibig ang new Title under your name, ime-message ka nila na ipa-notarize na yong 3 sets of documents, at bayaran na ang DST for your Loan and Mortgage Agreement.
It might take the Register of Deeds 30 days to transfer the title to your name. If Pag-ibig has not messaged you after 30 days, follow up with them.
Malapit na ba ang Pag-ibig deadline?
About a week before deadline, at marami ka pang hindi nagawa, request for extension. Send email to led1.pre3@pagibigfund.gov.ph.
Pay Documentary Stamp Tax for your Loan and Mortgage Agreement
Kapag nag-message na ang Pag-ibig sa yo na nakuha na nila ang new Title under your name, it’s now time to have your Loan and Mortgage Agreement, Promissory Note, and Deed of Undertaking notarized. Then go to BIR, and pay your Documentary Stamp Tax. See Computations in the last section of this post.
Apply for Transfer of Tax Declaration to your name at the Assessor’s Office
Transfer the Tax Declaration to your name within 30 days from the Date of Release of Title under your name. In our city, the penalty for missing the deadline is 2,500 pesos. Check if your city has a shorter deadline.
Check also the website of your City Assessor’s Office if they require an appointment before you go to their office and request for Transfer of Tax Declaration. If yes, set an appointment online.
Documents required:
- Title under your name, photocopy (bring certified true copy)
- Copy of Registration Fee payment receipt from the Register of Deeds showing Date of Release of title under your name (nasa Pag-ibig officer ito; pede kang pumunta sa Pag-ibig office, o pede kang makiusap sa RD na tatakan nila yong photocopy mo ng Date of Release).
- Deed of Absolute Sale, photocopy
- Certificate Authorizing Registration (CAR), photocopy
- Real estate tax receipt for the current year
- Transfer tax receipt
- Photographs of property (front, side, rear, living/dining room, bedroom, bathroom, kitchen; clear photos; 1 or 2 photos on 1 bond paper; label your photos)
- Special Power of Attorney, or Authorization Letter, if applicable, with copies of IDs of owner and representative
- Sworn Statement of the Owner (download it from your City Assessor’s Office), sample here
- Tax Clearance for the current year (bring it; they might require it)
Pay for new issuance, around 200 pesos. In our city, they process this for 11 working days.
Annotate Your Pag-ibig Mortgage to Your Title
After getting your Tax Declaration under your name, get also a Tax Clearance under your name. Show your Real Estate Tax receipt for the current year.
Then message Pag-ibig that you already have your new Tax Declaration and Tax Clearance. Pag-ibig will set a schedule for you to meet with them at the Register of Deeds. You will ask RD to annotate your Loan and Mortgage agreement to your title. The Pag-ibig officer will bring your original Owner’s Duplicate Certificate of Title and other documents needed for annotation.
Documents required:
- Original Owner’s Duplicate Certificate of Title under your name (hawak ng Pag-ibig officer)
- Certified True Copy of Title under your name (photocopy)
- Loan and Mortgage Agreement (notarized and stamped by BIR)
- Promissory Note (notarized)
- Documentary Stamp Tax Declaration/Return (BIR Form 2000) with BIR stamp, original and photocopy
- Receipt of payment of documentary stamp tax (receipt from bank where you paid), original and photocopy
- Tax Declaration for Land and for Building under your name, original and photocopy
- Real Property Tax Clearance under your name (original and photocopy)
- Real Estate Tax Receipt for current year (original and photocopy)
You will pay the Annotation Fee. It’s around the same amount as the Registration Fee that you’ve paid before.
Once again, the Pag-ibig officer will get the annotation fee payment receipt. Pag-ibig will get back the Original Owner’s Duplicate Certificate of Title when released by RD.
Final Steps: Cancellation of Mortgage ng Nagpasalo
After makuha ng Pag-ibig ang iyong Original Owner’s Duplicate Certificate of Title na annotated na with your mortgage, ire-release na ang loan proceeds mo at ibabayad na sa loan ng Seller (yong nagpasalo). Ibig sabihin, ikaw na ang naka-loan sa Pag-ibig. Magsisimula ka nang magbayad ng iyong monthly amortization the following month. Pag-ibig will, of course, give you the date.
Kukunin mo rin from Pag-ibig ang Cancellation of Mortgage Encumbrance document na ipe-present mo sa Register of Deeds para mapa-cancel mo sa title mo ang loan ng Seller.
Go back to Register of Deeds and present Pag-ibig’s Cancellation of Mortgage Encumbrance.
After cancellation, request for a Certified True Copy of your title. At least 2 copies, one for you and one for Pag-ibig. Makikita mo na isa na lang ang encumbrance sa title mo: ang current mortgage mo with Pag-ibig.
Get Your Refunds from Pag-ibig
Submit a Certified True Copy of your title to Pag-ibig (yong meron nang annotation of your mortgage sa Title). They will then process your refunds — your Retention Fee and remaining loan proceeds kung sumobra yong mga monthly amortization payments mo for the old loan.
Congratulations! Tapos na ang paglalakad mo ng papeles. Now, pagsikapan mong bayaran ang monthly amortizations mo hanggang ma-fully paid mo. Kung meron kang malaking kita, ibayad mo sa principal, para mas mabilis matapos ang loan mo.
COMPUTATIONS of TAXES and FEES
Notarization of Deed of Absolute Sale
Usually, 0.5% to 3% of Sale Price. Depende sa notary. Siempre, makiusap.
Capital Gains Tax (CGT)
Capital Gains Tax = 6% of Tax Base
Ang Tax Base ay yong HIGHEST amount sa 3 amounts na ito:
- Sale Price na nakalagay sa Deed of Sale
- Total Zonal Value ng Land and Building (BIR zonal values sa subdivision o lugar ninyo)
- Total Market Value ng Land and Building na nakalagay sa Tax Declaration
Usually, ang zonal value ng lots per SQM, naka-publish sa BIR website. Ang zonal value ng building ay kinukuha nila sa Market Value of Building sa Tax Declaration. I-add nila yong 2 values.
Halimbawa, ang HIGHEST sa 3 amounts ay yong Sale Price, halimbawa 2,000,000 pesos. Ang
CGT = 6% of 2,000,000 = 0.06 x 2,000,000 = 120,000 pesos
You will pay 120,000 pesos for CGT.
Documentary Stamp Tax (DST) for Real Estate Sale
Documentary Stamp Tax = 15 pesos for every 1,000 pesos of Tax Base or a fraction thereof
Using Tax Base above: 2,000,000 pesos / 1,000 pesos = 2,000
2,000 pesos x 15 pesos = 30,000 pesos
DST = 30,000 pesos
Minsan, makikita nio sinasabing ang DST ay 1.5% of Tax Base. Pede rin. Pero pag ang Tax Base ay merong butal o barya, kelangang isama yong “a fraction thereof.”
Transfer Tax
Transfer Tax = 0.75% of Tax Base
Sa example na 2M tax base: 2,000,000 x .0075 = 15,000 pesos
Sa provinces, 0.50% of Tax Base. Merong 0.60% of Tax Base.
Registration Fee
Merong complete Table of Registration Fee dito: Office of the Court Administration Circular 24-2003
The basis of computation is the Sale Price na nakalagay sa Deed of Sale.
Here are some portions of the Table:
| Sale Price | Registration Fee |
| 0 – 500 pesos | 21 pesos |
| 100,000 – 110,000 | 1,056 |
| 500,000 – 520,000 | 3,486 |
| 1,500,000 – 1,520,000 | 7,986 |
| 1,680,000 – 1,700,000 | 8,796 |
| For every 20,000 or fraction thereof, in excess of 1,700,000, in addition to the fee of 8,796 | 90 pesos |
Ang Sale Price na 2 million pesos ay sobra sa 1,700,000 na maximum sa table. May sobra na 300,000.
300,000 / 20,000 = 15
15 x 90 pesos = 1,350
Registration Fee = 8,796 + 1,350 = 10,146
Hindi lang yan. Meron pang IT fees. Hindi ko alam kung fixed ang IT fees, o sumasabay din sa sa Registration Fee. Yong sa amin, ang IT fees ay almost the same as the registration fee. For this Sale Price of 2 million pesos, puedeng ang total na babayaran ay around 15k pesos or around 20k pesos.
Documentary Stamp Tax (DST) for Loan ang Mortgage Agreement
Ang gamitin na form is BIR Form 2000. Monthly Documentary Stamp Tax Declaration/Return.
Ang Tax Code ng Mortgages ay DS 121 (makikita mo sa lower portion ng page 2 ng form)
Ang Tax Base ay Loan Amount na nasa Loan and Mortgage Agreement at Promissory Note.
DST = 40 pesos for the 1st 5,000 of Loan Amount, plus 20 pesos for every 5,000 in excess
Halimbawa, ang Loan Amount ay 1,500,000:
1,500,000 – 5,000 = 1,495,000
1,495,000 / 5,000 = 299
299 x 20 pesos = 5,980
5,980 + 40 pesos = 6,020
Ang DST na babayaran mo ay 6,020 pesos.
