Here’s a clear, practice-oriented explainer (Philippine context) of the PAG-IBIG Housing Loan Notice of Disclosure—what it is, what’s inside, what each line actually means for your wallet, when it’s issued, how it interacts with your loan agreement/REM, and how to check the math so there are no surprises on take-out day.

quick disclaimer: This is general information, not legal advice. PAG-IBIG (HDMF) circulars, rates, and forms change from time to time. Always read the actual Notice you’re given and the latest Fund guidelines attached to your loan.

What is a “Notice of Disclosure”?

It’s the one-page (sometimes two) document PAG-IBIG gives you that lays out the true cost and key terms of your housing loan in plain numbers. Think of it as HDMF’s truth-in-lending sheet: before you sign/consummate the loan, the Fund must show you, in writing, the amount you’ll receive, the charges deducted, the interest and insurance you’ll pay, the monthly amortization, and how/when the interest rate may reprice.

Why it matters: Courts and regulators treat disclosure seriously. If the Notice disagrees with the promissory note or the loan agreement, that’s a red flag to pause, reconcile, and fix before you accept proceeds or sign the Real Estate Mortgage (REM).

When do you get it—and how does it fit with other papers?

Timing: Issued before loan consummation/take-out, usually alongside the promissory note, loan agreement, REM (for registration/annotation), and the amortization schedule.
You should keep: (1) the Notice of Disclosure, (2) the signed promissory note/loan agreement, (3) the REM and title annotation details, and (4) the amortization schedule with monthly due dates.
If your loan will be repriced later (fixed-rate period ends), PAG-IBIG will send a repricing notice when that time comes; the original Notice still shows your initial fixing period and how repricing works.

The Notice—section by section (what each line means)

Below are the entries you’ll normally see and how to read them:

Loan Amount (Principal) The face amount you’re borrowing (e.g., ₱2,000,000). This is not the cash you’ll actually receive; deductions follow below.
Purpose of Loan Purchase of residential lot/house & lot/condo; construction; home improvement; refinancing; or a combination. The purpose can affect fees, required documents, and drawdown mechanics (e.g., staggered release for construction).
Interest Rate and Fixing/Repricing Period

Nominal annual rate (e.g., “6.5% p.a. fixed for 5 years”), then repricing rules (e.g., “subject to repricing at end of fixing period based on then-prevailing PAG-IBIG rates for the chosen remaining term”).
The fixing period is how long the initial rate is locked (1/3/5/10/15/20/30-year options are typical choices, availability varies).
Takeaway: Your monthly amortization can change at repricing. The Notice should say when and how.

Loan Term The total tenor (up to 30 years if you qualify by age and underwriting). Longer term → lower monthly → higher total interest paid.
Mode of Payment & Due Date Auto-debit from your enrolled bank or salary deduction; due date each month; grace period (if any) and late-payment penalty rule.
Monthly Amortization (Principal + Interest) This is the “annuity” amount computed from the principal, interest rate, and term (excluding insurance and membership savings top-ups unless stated).

Expect a separate line for MRI (Mortgage Redemption Insurance) and Fire/Allied Perils Insurance (FAPI). These may be added to your monthly.

Insurance Premiums

MRI pays off your outstanding loan if the insured borrower dies (premium depends on age, amount, term, risk class).
Fire/Allied Perils covers the house/unit securing the loan.
Premiums can be (a) prepaid for an initial period, and/or (b) collected monthly with your amortization—your Notice tells you which and the peso amount.

Fees, Taxes, and Other Charges (Itemized) Deducted upfront from proceeds or billed separately. Common line items include:

Documentary Stamp Tax (DST) on the loan instrument;
Mortgage registration/annotation fees at the Register of Deeds;
Notarial/processing/appraisal fees;
Handling/mailing/filing charges;
Title-related fees (if the Fund advanced and will net these). Tip: These are why your net take-home is lower than the face loan.

Net Proceeds Loan amount minus itemized deductions. If your seller expects full payment, make sure your purchase contract anticipates net-of-fees funding (or plan to add cash).
Effective Cost/Annual Percentage Rate (APR) (if shown) Some Notices show an effective rate that capitalizes fees/insurance to express your true borrowing cost. If not shown, you can approximate (see “Check the math” below).
Prepayment Terms

Partial prepayment: allowed any time? minimum amount? how is it applied (principal first)? is there a repricing-period restriction or prepayment handling fee?
Full prepayment: how to request a payoff statement; any pre-termination fee (often waived, but check). Prepaying reduces interest because interest accrues on the reduced balance.

Default & Penalties Late-payment penalty rate and when it kicks in; cross-default clauses (e.g., default on any obligation to PAG-IBIG may default this loan), and remedies including foreclosure.
Collateral & Insurance Assignment Your property is mortgaged under the REM; the fire policy is assigned to PAG-IBIG. The Notice ties these to your obligations.
Borrower Declarations & Consents Data privacy, truthful disclosure, consent to account verification, and acknowledgment that you received this Notice before consummation.

How to audit the numbers (a step-by-step, borrower-friendly way)

Use the Notice to reconstruct your monthly and your net proceeds. Here’s a sample with round figures (purely illustrative; your Notice governs):

Loan amount (principal): ₱2,000,000
Term: 30 years (360 months)
Interest: 6.5% p.a., fixed for 5 years, repricing afterwards
Base monthly (principal+interest): about ₱12,641.36
MRI + Fire monthly: say ₱650 (this varies by age/coverage; your Notice shows exact amounts)
Stated monthly due: ₱13,291.36 (₱12,641.36 + ₱650)

Upfront deductions (illustrative):

DST on loan, mortgage-registration, appraisal, processing, notarial, title annotation, etc. → ₱26,000 (your Notice itemizes each line)
Net proceeds: ₱1,974,000 (₱2,000,000 − ₱26,000)

What to check:

The base monthly multiplied by term is not your total cost—because each month part goes to principal. But this helps sanity-check the ballpark.
Insurance: Are the MRI/FAPI amounts per month or prepaid (e.g., first year netted)? Your Notice must say.
Net proceeds math: Sum every fee/tax and confirm the subtraction equals the stated net.
Repricing: Calendar the repricing date and confirm what choices you’ll have (new fixing periods, options to prepay).

Reading repricing correctly (this trips people up)

Your rate is locked only during the fixing period printed on the Notice.
On repricing, PAG-IBIG updates your rate to the posted rate applicable to: (a) your remaining term, and/or (b) the new fixing period you select—subject to Fund rules at that time.
You usually get a repricing notice in advance. You may be able to choose another fixing period or partially prepay before repricing to shrink your balance (thereby reducing sensitivity to rate changes).

What if numbers in the Notice don’t match other documents?

Stop and resolve before take-out. Prioritize this match-up:

Notice vs. Promissory Note: principal, rate, term, repricing language must align.
Notice vs. Amortization Schedule: monthly (P+I) must be the same; insurance add-ons must be explained.
Notice vs. REM: principal amount, interest reference, and collateral details should echo each other.

If there’s a mismatch, ask the branch to re-issue corrected documents. Do not sign “we’ll fix later.” Once registered/consummated, fixes become slower and costlier.

Typical fees & charges you’ll see (how they behave)

(Labels and amounts vary by branch/circular; these are the usual categories you’ll encounter.)

Taxes: Documentary Stamp Tax on the loan; sometimes local registry taxes/fees tied to mortgage annotation.
Government/Registry: Register of Deeds entry and annotation fees; ITRS/entry fees; certification copies.
Fund/Third-party service: Appraisal, processing, inspection/verification, notarial.
Insurance: MRI and Fire/Allied Perils—either prepaid portion (netted) and/or monthly add-ons.
Miscellaneous: Mailing/courier, caveat/cancellation or consolidation fees (if refinancing), documentary costs.

Pro tip: Ask the cashier/loans release desk for the fee breakdown printout and staple it to your Notice. That becomes your audit trail.

Prepayment, late payments, and restructuring—how the Notice frames them

Partial prepayment: Usually allowed anytime; request a prepayment computation. This should reduce principal immediately; your monthly may stay the same (term shortens) or the Fund may recast your monthly—check what you prefer and what the rules allow.
Full prepayment: Ask for a payoff statement (good-through date) to settle in one go. Confirm if any prepayment handling fee applies.
Late payments: Notice states the penalty rate and when it accrues. Avoid snowballing by paying before month-end cut-off.
Restructuring: If you fall behind, PAG-IBIG may offer loan restructuring. You’ll receive a new disclosure reflecting the restructured terms.

Borrower’s 10-point checklist (use this against your Notice)

Principal, rate, term exactly match your approval.
Fixing period and repricing date are clearly stated (calendar it).
Monthly amortization (P+I) equals the amortization schedule.
Insurance: MRI/FAPI amounts and collection method (monthly vs. prepaid) are clear.
All fees/taxes are itemized; totals add up to the net proceeds shown.
Due date, grace period, and penalty rule are printed.
Prepayment terms (partial/full) are stated; ask staff to note any minimums.
Collateral details (property description/TCT or CCT no.) match your title/contract.
Purpose of loan is correct (purchase, construction, refinance, etc.).
You receive an original copy of the Notice with your signature acknowledging receipt.

Frequently asked questions

Q: The Notice shows a lower net take-home than I expected—can I change it? You can’t change taxes/mandatory fees, but you can plan the cash top-up or adjust the loan amount (within approval caps) before take-out.

Q: Why is my monthly due slightly higher than the P+I shown? Because insurance (MRI/FAPI) is added on top if collected monthly. Your Notice should show both the base amortization and the all-in monthly.

Q: Will my monthly drop if I make a partial prepayment? Depends on Fund rules at the time and your request. Often, partial prepayment reduces term while keeping the monthly constant; some setups allow recasting to lower the monthly. Ask for the specific option in writing.

Q: Do I get a new Notice when my rate reprices? You’ll get a repricing advice/notice. Some branches also issue an updated disclosure snapshot for the new fixing period—keep that with your file.

Q: The seller wants full price but my net proceeds are short. What now? Coordinate a split disbursement (HDMF net + your cash) or adjust the sale contract. Don’t sign a deed acknowledging full price if funds are short—align the numbers first.

Mini-glossary (so the Notice’s terms make instant sense)

Amortization (P+I): Your fixed monthly payment combining principal and interest.
Fixing Period: The stretch of time your interest rate is locked.
Repricing: The rate reset after your fixing period, based on posted Fund rates and rules at that time.
MRI: Insurance that pays off the loan if the insured borrower dies (creditor-assigned).
FAPI: Fire/Allied Perils coverage over the mortgaged home/unit.
REM: Real Estate Mortgage—registered with the Register of Deeds as lien on your title.
Net Proceeds: Cash (or check to seller) after all deductions.
DST: Documentary Stamp Tax on loan instruments.
APR/Effective Cost: The true annualized cost once fees/charges are folded into the computation.

Bottom line

The Notice of Disclosure is your snapshot of the whole deal—rate, term, monthly, insurance, fees, net proceeds, and repricing rules—before you are locked in.
Read it against your promissory note, amortization schedule, and REM; all must align.
Check the math (especially insurance add-ons and net proceeds) and calendar repricing.
If anything is unclear or inconsistent, ask for a corrected Notice before you sign or accept take-out.

If you want, share the exact lines from your Notice (you can blank out personal info), and I’ll walk through the computations and flag any mismatches or gotchas in plain English.