Pag-IBIG Benefits

1. Concept

Pag-IBIG benefits – refer to the benefits provided for by the Home Development Mutual Fund (HDMF), also known as Pag-IBIG (Pagtutulungan sa Kinabukasan: Ikaw, Bangko, Industriya at Goberyno) Fund.

a. Home Development Mutual Fund

‘The Home Development Mutual Fund (HDMF), also known as Pag-IBIG (Pagtutulungan sa Kinabukasan: Ikaw, Bangko, Industriya at Goberyno) Fund, is a Government-Owned and Controlled Corporation (GOCC) that provides the Filipino workers access to a secured savings and affordable home financing to improve the quality of their lives.’ (2023 DOLE-BWC Handbook on Workers’ Statutory Monetary Benefits or “DOLE-BWC Handbook”, p. 61)

2. Coverage

‘Pag-IBIG membership is mandatory for all employees covered by the Social Security System (SSS) and the Government Service Insurance System (GSIS); uniformed members of the Armed Forces of the Philippines, the Bureau of Fire Protection, the Bureau of Jail Management and Penology, and the Philippine National Police; and, Filipinos employed by foreign-based employers.’ (DOLE-BWC Handbook, p. 61)

3. Benefits

Pag-IBIG program and benefits include:

1) Provident Savings,

2) Short-Term Loans,

3) Home Financing, and

4) Other Program and Benefits. (DOLE-BWC Handbook, p. 61)

a. Provident Savings

Provident savings include:

1) Pag-IBIG Regular Savings; and

2) Modified Pag-IBIG 2 (MP2) Savings

1) Pag-IBIG Regular Savings

‘The Pag-IBIG Regular Savings, or the monthly mandatory membership savings, is a savings facility that gives members high annual dividend earnings. Members who are formally employed contribute a minimum of P100 from their monthly income, while their employers also match their contributions with a share of P100. Self-employed members can contribute for as low as P100 per month. Members can withdraw their Pag-IBIG Savings and its dividend earnings upon retirement, or after 20 years, or equivalent to 240 monthly contributions.’ (DOLE-BWC Handbook, p. 61)

Ano ang dagdag na mga benepisyo para sa miyembro mula sa mas mataas na buwanang hulog sa Pag-IBIG?

Sa pagtaas ng buwanang hulog ng bawat miyembro, dodoble ang kaniyang buwanang naiipon at ang kaniyang taunang dibidendo sa kanyang impok sa Pag-IBIG Fund na kung tawagin ay Pag-IBIG Regular Savings na kanyang matatanggap ng buo sa oras na mag-mature ang kaniyang membership, sa kanyang retirement at sa iba pang mga kadahilanan.

Ito ay dahil simula Pebrero 2024, ang kasalukuyang hulog na P100 ng bawat miyembro at P100 ng kaniyang employer ay parehong magiging P200 na. Kaya’t ang kabuuang buwanang hulog magmula Pebrero na magiging ipon ng isang miyembro sa kanyang Pag-IBIG Regular Savings ay magiging P400.

Dahil dito, tataas din ang maaari niyang mahiram sa ilalim ng Pag-IBIG Multi-Purpose Loan, dahil mas malaki na din ang kaniyang Pag-IBIG Regular Savings na siyang basehan ng kanyang mahihiram.

Patuloy ding magiging mababa ang interes sa Pag-IBIG Housing Loan dahil lalong lalakas ang kaming kakayanang pondohan ang mga loans ng aming mga miyembro. At, bunga ng dagdag na koleksyon, mas marami kaming mga miyembrong mapapautang sa mababang interes sa ilalim ng Pambansang Pabahay para sa Pilipino Program ng ating pamahalaan, para magkaroon sila at ang kanilang pamilya ng sarili nilang bahay.’ (HDMF/Pag-IBIG. Regular Savings – Frequently Asked Questions. https://www.pagibigfund.gov.ph/FAQ_RS.html)

2) Modified Pag-IBIG 2 (MP2) Savings

‘The Modified Pag-IBIG II (Pag-IBIG MP2) Savings Program is a special voluntary savings facility with a 5-year maturity, designed for active Pag-IBIG Fund members who wish to save more and earn higher dividends, in addition to their Pag-IBIG Regular Savings.’ (HDMF/Pag-IBIG. Modified Pag-IBIG 2 (MP2) Savings – Frequently Asked Questions. https://www.pagibigfund.gov.ph/FAQ_MP2.html)

‘A special voluntary savings facility that is open to all active Pag-IBIG Members who wish to save more and earn higher dividends, in addition to their Pag-IBIG Regular Savings. The MP2 Savings is an easy and flexible savings program with a 5-year maturity period. Members can start saving for as low as P500 per remittance, making it more accessible. The dividends earned in the MP2 Savings are tax-free and can be withdrawn annually or after the 5-year maturity period.’ (DOLE-BWC Handbook, p. 61)

Key features of the MP2 Savings Program

The MP2 Savings Program has the following key features:

1) Easy to save as members can save for only a minimum of P500 per remittance,

2) Earns higher dividends than the Pag-IBIG Regular Savings,

3) Dividends are tax-free and can be withdrawn annually or after the 5-year maturity, and

4) MP2 Savings are government-guaranteed. (HDMF/Pag-IBIG. Modified Pag-IBIG 2 (MP2) Savings – Frequently Asked Questions. https://www.pagibigfund.gov.ph/FAQ_MP2.html)

b. Short-Term Loans

Short-term loans include:

1) Pag-IBIG Multi-Purpose Loan; and

2) Pag-IBIG Calamity Loan

1) Pag-IBIG Multi-Purpose Loan

‘The Pag-IBIG Multi-Purpose Loan or MPL is a cash loan designed to help qualified Pag-IBIG Fund members with any immediate financial need.’ (HDMF/Pag-IBIG. Pag-IBIG Multi-Purpose Loan – Frequently Asked Questions. https://www.pagibigfund.gov.ph/FAQ_MPL.html)

‘An affordable and easily accessible cash loan program offered by Pag-IBIG Fund. Qualified members can borrow up to 80% of their total Pag-IBIG Regular Savings, which includes their monthly contributions, employer’s contributions, and accumulated dividends earned. The loan proceeds can be used to pay for tuition fees, medical expenses, minor home improvements, travel, or even as a capital for a small business. The loan is payable in 24 or 36 monthly installments at a low interest rate of 10.5% per year.’ (DOLE-BWC Handbook, p. 62)

How much can be borrowed?

‘Qualified members can borrow up to 80% of their total Pag-IBIG Regular Savings, which consist of their monthly contributions, their employer’s contributions, and accumulated dividends earned.

This means that the more you save in your Pag-IBIG Regular Savings, the higher loan amount you may apply for via the MPL.

If you have an outstanding Pag-IBIG Calamity Loan, the amount you may borrow shall be the difference between the 80% of your total Pag-IBIG Regular Savings and the outstanding balance of your Pag-IBIG Calamity Loan.’ (HDMF/Pag-IBIG. Pag-IBIG Multi-Purpose Loan – Frequently Asked Questions. https://www.pagibigfund.gov.ph/FAQ_MPL.html)

2) Pag-IBIG Calamity Loan

‘The Pag-IBIG Fund Calamity Loan seeks to provide immediate financial aid to affected Pag-IBIG Fund members in calamity-stricken areas as declared by the Office of the President or the Sangguniang Bayan.’ (HDMF/Pag-IBIG. Calamity Loan Program – Frequently Asked Questions. https://www.pagibigfund.gov.ph/FAQ_CLP.html)

‘The Pag-IBIG Calamity Loan aims to provide immediate financial assistance to Pag-IBIG members who have been affected by calamities and are residing in areas declared under a State of Calamity. Eligible members may borrow up to 80% of their total Pag-IBIG Savings, which consist of their monthly contributions, the counterpart employer’s contributions, and accumulated dividends earned. Pag-IBIG Calamity Loan is offered at a rate of 5.95% per annum, the lowest rate in the market and is payable over a period of up to three years, with a grace period of three months.’ (DOLE-BWC Handbook, p. 62)

How much can be borrowed?

‘Qualified members may borrow up to 80% of their total Pag-IBIG Regular Savings, which consist of their monthly contributions, their employer’s contributions, and accumulated dividends earned. If you have an outstanding Multi-Purpose and/or Calamity Loan, the amount of loan you will receive shall be the difference between the 80% of your total Pag-IBIG Regular Savings and the outstanding balance of your loan/s.

This means that the more you save in your Pag-IBIG Regular Savings, the higher loan amount you may apply for via the Calamity Loan.

If you have an outstanding Pag-IBIG Multi-Purpose Loan (MPL), the amount you may borrow shall be the difference between the 80% of your total Pag-IBIG Regular Savings and the outstanding balance of your Pag-IBIG MPL.’ (HDMF/Pag-IBIG. Calamity Loan Program – Frequently Asked Questions. https://www.pagibigfund.gov.ph/FAQ_CLP.html)

c. Home Financing

1) Retail

Retail home financing include:

1) Pag-IBIG Housing Loan;

2) Pag-IBIG Affordable Housing Loan for Minimum-Wage Earners;

3) Pag-IBIG Home Equity Appreciation Loan (HEAL); and

4) Pag-IBIG Home Saver Programs.

a) Pag-IBIG Housing Loan

‘The Pag-IBIG Fund Housing Loan allows you to borrow up to P6 million under very low rates and at the friendliest terms, to help you fulfill your dream of owning a home!’ (HDMF/Pag-IBIG. Pag-IBIG Housing Loan – Frequently Asked Questions, https://www.pagibigfund.gov.ph/FAQ_HL.html)

‘Allows Pag-IBIG members to borrow up to P6 million at low interest rates with borrower-friendly terms, and a maximum repayment period of up to 30 years.’ (DOLE-BWC Handbook, p. 62)

Usage

‘You may use the Pag-IBIG Housing Loan to finance any one or a combination of the following:

1) Purchase of a fully developed residential lot or adjoining residential lots not exceeding 1,000 square meters;

2) Purchase of a residential house and lot, townhouse or condominium unit;

⦁ Pre-owned or brand-new units,

⦁ A property mortgaged with Pag-IBIG Fund; or

Adjoining house and lots / townhouses / row houses / condominium units.

3) Construction or completion of a residential unit on a residential lot owned by the borrower or a relative of the borrower;

4) Home improvement; and

6) Refinancing of an existing housing loan, provided, that the borrower must be regularly paying the amortizations of the said loan without any payment made beyond thirty (30) days past due for the last six (6) months from the date of application.’ (HDMF/Pag-IBIG. Pag-IBIG Housing Loan – Frequently Asked Questions, https://www.pagibigfund.gov.ph/FAQ_HL.html)

How much can be borrowed?

‘You can borrow up to as much as P6 million. The amount you may borrow, however, shall be based on the lowest of the following:

1) Your actual need;

2) Your desired loan amount;

3) Your loanable amount based on your capacity to pay; and,

4) Loan-to-Appraised Value ratio.’ (HDMF/Pag-IBIG, Pag-IBIG Housing Loan – Frequently Asked Questions, https://www.pagibigfund.gov.ph/FAQ_HL.html)

b) Pag-IBIG Affordable Housing Loan for Minimum-Wage Earners

‘The Pag-IBIG Fund Affordable Housing Loan is designed for minimum-wage and low-income members who earn up to P15,000 a month within the National Capital Region (NCR) and earn up to P12,000 per month outside the NCR. Under the loan program, Pag-IBIG Fund offers a subsidized rate of of 3% per annum for home loans up to P580,000 in socialized subdivision projects and special low rates for home loans of up to P750,000 for socialized condominium projects.’ (HDMF/Pag-IBIG. Affordable Housing Loan for Minimum-Wage and Low-Income Earners – Frequently Asked Questions. https://www.pagibigfund.gov.ph/FAQ_AHL.html)

‘Designed for minimum-wage and low-income members who earn up to P15,000 a month within the National Capital Region (NCR), and earn up to P12,000 per month outside the NCR. Under the loan program, Pag-IBIG Fund offers a subsidized rate of of 3% per annum for home loans up to P580,000 in socialized subdivision projects and special low rates for home loans of up to P750,000 for socialized condominium projects.’ (DOLE-BWC Handbook, p. 62)

Usage

‘Minimum-wage earners may use the Pag-IBIG Affordable Housing Loan to finance any one or a combination of the following:

1) Purchase of a fully developed residential lot or adjoining residential lots not exceeding 1,000 square meters;

Purchase of a residential house and lot, townhouse or condominium unit;

Pre-owned or brand-new units

A property mortgaged with Pag-IBIG Fund; or

Adjoining house and lots / townhouses / row houses / condominium units.

2) Construction or completion of a residential unit on a residential lot owned by the borrower or a relative of the borrower;

3) Home improvement; and

3) Refinancing of an existing housing loan, provided, that the borrower must be regularly paying the amortizations of the said loan without any payment made beyond thirty (30) days past due for the last six (6) months from the date of application.’ (HDMF/Pag-IBIG. Affordable Housing Loan for Minimum-Wage and Low-Income Earners – Frequently Asked Questions. https://www.pagibigfund.gov.ph/FAQ_AHL.html)

How much can be borrowed?

‘One can borrow up to Seven Hundred Fifty Thousand Pesos (P750,000.00). The amount one may borrow, however, shall be based on the lowest of the following:

1) Actual need;

2) Desired loan amount;

3) Loanable amount based on your capacity to pay; and,

4) Loan-to-Appraised Value ratio.’ (HDMF/Pag-IBIG. Affordable Housing Loan for Minimum-Wage and Low-Income Earners – Frequently Asked Questions. https://www.pagibigfund.gov.ph/FAQ_AHL.html)

c) Pag-IBIG Home Equity Appreciation Loan (HEAL)

‘The Pag-IBIG Home Equity Appreciation Loan (HEAL) is a low-interest loan available to our good paying housing loan borrowers and installment buyers.

With the Pag-IBIG HEAL, they can borrow an amount based on the net value of their mortgaged property with Pag-IBIG Fund to help them fund their life goals – such as to renovate their homes, buy a car or purchase furniture and appliances.

With its low-interest rates and borrower-friendly terms, it serves as their reward for paying their Pag-IBIG Fund Housing Loan on-time.’ (HDMF/Pag-IBIG. Pag-IBIG Home Equity Appreciation Loan (HEAL) – Frequently Asked Questions. https://www.pagibigfund.gov.ph/FAQ_HEAL.html)

‘A low-interest loan available to all members with updated payments for their Pag-IBIG Housing Loan. With the Pag-IBIG HEAL, eligible members can borrow an amount based on the net value of their mortgaged property with Pag-IBIG Fund to help them fund their life goals – such as to renovate their homes, buy a car or purchase furniture and appliances.’ (DOLE-BWC Handbook, p. 62)

How much can be borrowed?

‘You can borrow the net value of our mortgaged property with Pag-IBIG, subject to the following four (4) considerations:

1) Your desired loan amount

2) Your capacity to pay

3) The latest Loan-To-Value Ratio, computed based on:

60% of latest appraised value of your mortgaged property with Pag-IBIG FundlessTotal outstanding balance of your existing Pag-IBIG Housing Loan/s

4) Your maximum aggregate loan value, computed based on:

P6 million(six million pesos)lessTotal outstanding balance/s of your existing Pag-IBIG Housing Loan/s

5) The lowest of the above amounts shall be the amount one can borrow via the Pag-IBIG HEAL.’ (HDMF/Pag-IBIG. Pag-IBIG Home Equity Appreciation Loan (HEAL) – Frequently Asked Questions. https://www.pagibigfund.gov.ph/FAQ_HEAL.html)

Usage

‘Fund your life goals with Pag-IBIG HEAL! You can use the amount you can borrow for:

• Home Improvement

• Livelihood/additional capital for business

• Education expenses

• Health and wellness expenses

• Purchase of appliance and furniture/electronic gadgets

• Payment of utilities/credit card bills

• Travel and leisure

• Other life goals’ (HDMF/Pag-IBIG. Pag-IBIG Home Equity Appreciation Loan (HEAL) – Frequently Asked Questions. https://www.pagibigfund.gov.ph/FAQ_HEAL.html)

d) Pag-IBIG Home Saver Programs

‘Provides options to Pag-IBIG Housing Loan borrowers who have missed payments to update their accounts and save their homes from foreclosure.’ (DOLE-BWC Handbook, p. 63)

2) Institutional

Institutional home financing include:

1) Direct Developmental Loan [DDL];

2) Direct Developmental Loan Program for the Pambansang Pabahay Para sa Pilipino Housing (4PH) Program [DDLP-4PH]; and

3) Rental Housing Construction Loan [RHCL]. (DOLE-BWC Handbook, p. 63)

a) Direct Developmental Loan [DDL]

‘Provides loan financing for property/real-estate developers/proponents to develop residential subdivisions or medium-rise residential buildings, and housing units eligible for mortgage financing under Pag-IBIG Housing Loan.’ (DOLE-BWC Handbook, p. 63)

b) Direct Developmental Loan Program for the Pambansang Pabahay Para sa Pilipino Housing (4PH) Program [DDLP-4PH]

‘Encourages public-private partnership by providing access to affordable financing mechanism for property developers, Local Government Units (LGUs), contractors, and

joint venture entities for the development of residential subdivision/condominium housing projects, and construction of housing units. Aims to support the national government and the Department of Human Settlements and Urban Development (DHSUD) to reduce the 6 million housing backlog of the country. (DOLE-BWC Handbook, p. 63)

c) Rental Housing Construction Loan [RHCL]

‘A financing facility which may be used to fund the site development and construction of residential units meant for rental housing, which may include staff houses, dormitories, and other similar dwellings. This program is open to employers, whether private or from the government sector.’ (DOLE-BWC Handbook, p. 63)

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