Pasalo / assume-balance properties in the Philippines
Take over an existing Pag-IBIG or bank housing loan: pay the seller's equity, then continue the monthly amortization. A structured, safer home for the pasalo market — with a plain guide to how it works.
Pasalo listings
How pasalo works
When a homeowner has been paying a Pag-IBIG or bank housing loan for a few years but can no longer keep it up — or simply wants out — they can pass it on. The new buyer pays the equity (the cash the seller has already put in) and then continues the remaining amortization to the same financier. It is often far cheaper to enter than buying outright, because you skip a fresh down payment and step into a loan that is already part-paid.
The catch is documentation. A safe pasalo is formalised — ideally the buyer formally assumes the loan with the lender's written consent, or signs a notarised Deed of Assignment of Rights. An informal pasalo where the title and the loan stay in the seller's name leaves the buyer exposed: if the seller takes another loan against it, dies, or disappears, the buyer can lose everything they paid. Always verify the loan is current, get the latest statement of account, and treat the lender's consent as non-negotiable.
Planning to take over a Pag-IBIG loan? Read our Pag-IBIG housing loan guide, and compare prices with the price per square metre by city tool before agreeing an equity.
Frequently asked questions
What does 'pasalo' mean?
Pasalo (from the Filipino 'pasa' — to pass on) is the transfer of a property still under an active housing loan to a new buyer. The buyer pays the seller's accumulated equity (the cash-out), then takes over and continues paying the remaining monthly amortization to the financier — usually Pag-IBIG or a bank.
Is pasalo legal in the Philippines?
Yes, but how it is done matters. A clean pasalo is formalised — ideally through the financier's official loan-assumption/restructuring process, or a notarised Deed of Assignment with the developer's and lender's consent. An informal 'word-of-mouth' pasalo where the title and loan stay in the seller's name is risky for the buyer and is where most pasalo scams happen.
What do I pay in a pasalo deal?
Two things: (1) the seller's equity / cash-out — what they have already paid in, paid to them up front; and (2) the remaining monthly amortization, which you continue paying to Pag-IBIG or the bank until the loan is settled. Each pasalo listing here shows the equity, the monthly amortization, the outstanding balance and the financier.
How do I do a pasalo safely?
Verify the loan is current (no arrears) and ask for the latest statement of account; confirm with the financier whether formal loan assumption is allowed and start that process; insist on a notarised Deed of Assignment/Sale of Rights; and never rely on a purely verbal transfer. Treat the title status and the lender's written consent as deal-breakers. This is general information, not legal advice — consult a lawyer.
Can I take over a Pag-IBIG loan through pasalo?
Pag-IBIG has rules on loan assumption and restructuring; in many cases the qualified new buyer can formally assume the loan. Confirm eligibility and the exact process with Pag-IBIG before paying any equity.