Covered fees and fee schedule
- The retention fee for developer-assisted housing loan accounts and the transfer/registration fee for retail housing loan accounts are set at rates that depend on the loan amount.
- For loans up to PHP 500,000, the rates are BIR: 3.5%, RD: 3.0%, and LGU: 1.0%, for a total of 7.5%.
- For loans over PHP 500,000 to PHP 2,000,000, the rates are BIR: 5.0%, RD: 1.5%, and LGU: 1.0%, for a total of 10.0%.
- For loans over PHP 2,000,000 to PHP 6,000,000, the rates are BIR: 8.0%, RD: 1.0%, and LGU: 1.0%, for a total of 10.0%.
Treatment when developer is tax-exempt
- If the developer is exempted from the payment of tax, no retention fee shall be deducted from the housing loan takeout proceeds up to the extent of the said exemption.
- The tax-exempt treatment applies only if the developer furnishes Pag-IBIG Fund with proof of Certificate of Tax Exemption issued by the BIR Commissioner.
Repeal and continuing force of other terms
- Circular No. 406 repeals Section II.1 of Pag-IBIG Fund Circular No. 388.
- Circular No. 406 also repeals the Additional Amendments Relative to the Conversion of CTS to REM under Item C of Circular No. 298 and under Item C.3.3.2 of Circular No. 259.
- All other terms and conditions in the repealed and referenced circulars continue to have full force and effect insofar as they are not inconsistent with Circular No. 406.