Pag-IBIG, or Pagtutulungan sa Kinabukasan: Ikaw, Bangko, Industriya at Gobyerno, officially known as the Home Development Mutual Fund (HDMF), is a government institution established in an effort to provide Filipino workers with savings programs and affordable housing financing options. It aims to promote home ownership among Filipinos by offering various loan and cash assistance programs that help individuals purchase, build, or improve their homes, as well as address other personal financial needs.
These cash assistance and loan programs offered by Pag-IBIG are designed to provide Filipinos with the financial support necessary to achieve their ultimate life goals such as owning a home, covering emergency expenses, or funding education and healthcare. Understanding that these programs are available can significantly impact your financial stability and long-term planning, allowing for informed decisions that improve the Filipinos’ quality of life.
Types of Cash Assistance Programs Offered by Pag-IBIG
Pag-IBIG offers a variety of cash assistance programs designed to help members meet their financial needs, ranging from home financing to personal emergencies. These include:
- Housing Loan Programs: Options like the Pag-IBIG Housing Loan, Affordable Housing Loan for Minimum-Wage Earners, and Home Equity Appreciation Loan (HEAL) help members purchase, renovate, or refinance homes.
- Loan Restructuring and Payment Programs: Programs such as Housing Loan Restructuring, Plan of Payment, Housing Loan Revaluation, and Penalty Condonation assist members in managing and settling overdue housing loans.
- Multi-Purpose Loan (MPL): Provides financial aid for various needs including education, health, business, and home improvement.
- Health and Education Loan Programs (HELPs): Tailored loans for covering educational and healthcare expenses, with direct payments to accredited institutions.
- Calamity Loan: Offers immediate financial relief to members in areas affected by government-declared calamities.
For more detailed information on the specific programs and to see which one fits your needs the best, please see the list below:
1. Pag-IBIG Housing Loan
The Pag-IBIG Housing Loan is designed to help Filipinos purchase, construct, or renovate homes. With loanable amounts up to P6 million and competitive interest rates, it offers a flexible way for members to achieve homeownership. The program covers various housing needs, including the purchase of residential lots, houses, townhouses, or condominium units, as well as home improvement and refinancing.
Purpose: To assist Pag-IBIG Fund members in financing the acquisition, construction, or improvement of residential properties.
Benefit, Amount, and Other Terms:
- Maximum Loan Amount: Up to P6 million
- Interest Rates (Effective 01 July 2024):
- 1-Year Fixing: 5.750%
- 3-Year Fixing: 6.250%
- 5-Year Fixing: 6.500%
- 10-Year Fixing: 7.125%
- 15-Year Fixing: 7.750%
- 20-Year Fixing: 8.500%
- 25-Year Fixing: 9.125%
- 30-Year Fixing: 9.750%
- Maximum Payment Period: 30 years, not exceeding the difference between age 70 and the borrower’s current age
- Insurance Coverage: Mortgage Redemption Insurance (MRI) or Sales Redemption Insurance (SRI), Fire and Allied Perils Insurance (FAPI)
2. Pag-IBIG Home Equity Appreciation Loan (HEAL)
The Pag-IBIG HEAL is a low-interest loan designed for Pag-IBIG Fund members with existing housing loans who need additional funds. It allows members to borrow against the net value of their mortgaged property to finance various personal needs, such as home renovation or buying appliances.
Purpose: To provide additional financing for members with existing Pag-IBIG housing loans to support personal and household needs.
Benefit, Amount, and Other Terms:
- Loan Amount: Based on the net value of the mortgaged property, subject to certain considerations (e.g., loan amount, capacity to pay)
- Interest Rates: Determined by the repricing period chosen by the borrower
- Maximum Repayment Term: 30 years, with the borrower’s age not exceeding 70 at the end of the loan term
- Insurance Coverage: Mortgage Redemption Insurance (MRI) or Sales Redemption Insurance (SRI), and additional Non-Life Insurance (NLI)
- Payment Options: Online payments via Virtual Pag-IBIG or accredited partners
3. Pag-IBIG Fund Affordable Housing Loan for Minimum-Wage Earners
This program is tailored for minimum-wage and low-income Pag-IBIG Fund members, offering subsidized interest rates for home loans. It is designed to help members who earn up to P15,000 (NCR) or P12,000 (outside NCR) per month to acquire affordable housing.
Q To provide affordable home financing options for minimum-wage and low-income Pag-IBIG Fund members.
Benefit, Amount, and Other Terms:
- Loan Amount: Up to P750,000
- Interest Rates:
- 3% per annum for loans up to P580,000 in socialized subdivision projects (first 5 years)
- 6.5% per annum for loans up to P750,000 for socialized condominium projects (first 10 years)
- Maximum Payment Period: 30 years, not exceeding the difference between age 70 and the borrower’s current age
- Collateral: The housing loan is secured by the residential properties purchased or improved under the loan
- Insurance Coverage: Mortgage Redemption Insurance (MRI) or Sales Redemption Insurance (SRI), Fire and Allied Perils Insurance (FAPI)
4. Home Savers Program
The Home Savers Program by Pag-IBIG Fund includes several initiatives designed to help members manage and save their homes from foreclosure or payment difficulties. These programs offer flexible solutions for members who face challenges in meeting their housing loan obligations, ensuring that they can maintain their home ownership while addressing their financial concerns.
Under this program, there are four different kinds of programs:
- Housing Loan Restructuring allows members to adjust their loan terms to reduce monthly payments, spreading the remaining amortizations over a longer period.
- The Plan of Payment provides an installment plan to settle unpaid dues for those with at least three months of arrears.
- For those with more significant payment delays, the Housing Loan Revaluation enables property revaluation with discounts based on the repayment mode.
- Lastly, the Penalty Condonation program helps members by waiving penalties and additional interest, provided they update or settle their overdue accounts, ensuring their housing loans remain manageable.
Housing Loan Restructuring
The Housing Loan Restructuring program allows Pag-IBIG Fund members to spread their unpaid monthly amortizations over the remaining loan term or reduce monthly payments by extending the loan term. This program is available to most housing loan borrowers, except for those with canceled CTS, foreclosed, or resold accounts.
Purpose: To make housing loan payments more manageable for Pag-IBIG Fund members with overdue accounts.
Benefit, Amount, and Other Terms:
- Maximum Loan Term: 30 years, not exceeding the difference between the borrower’s age and age 70
- Interest Rate: Based on Pag-IBIG Fund’s Full-Risk Based Pricing Framework for restructured loans
- Eligibility: Open to ALL Housing Loan borrowers, except those with certain disqualifications
Plan of Payment
The Plan of Payment program is designed for Pag-IBIG Fund members with at least three months of unpaid amortizations, offering an installment plan to settle overdue amounts.
Purpose: To provide an affordable installment plan for settling overdue housing loan payments.
Benefit, Amount, and Other Terms:
- Payment Terms: Settle unpaid dues for up to six months
- Eligibility: Open to ALL Housing Loan borrowers with at least three months of arrears/unpaid amortizations
Housing Loan Revaluation
The Housing Loan Revaluation program allows members with more than twelve months of unpaid amortizations to revalue their property based on its current appraised value and avail of discounts based on their preferred settlement mode.
Purpose: To offer members an opportunity to revalue their property and reduce outstanding loan amounts.
Benefit, Amount, and Other Terms:
- Discount Rates:
- 30% for cash payment
- 20% for six months installment
- 10% for twelve months installment
- 5% via Pag-IBIG Housing Loan
- Eligibility: Open to ALL Housing Loan borrowers with more than twelve months of arrears, provided the account is not canceled, foreclosed, or owned by Pag-IBIG Fund
Penalty Condonation
The Penalty Condonation program offers Pag-IBIG Fund members a chance to waive all penalties and additional interests by fully updating or paying off their housing loan account.
Purpose: To help Pag-IBIG Fund members eliminate penalties and additional interest charges on their housing loans.
Benefit, Amount, and Other Terms:
- Eligibility: Open to ALL Housing Loan borrowers with at least three months of arrears/unpaid amortizations, provided the account is not canceled, foreclosed, or owned by Pag-IBIG Fund
- Processing Fees: No processing fees required
5. 4PH Program
The 4PH Program, under the Department of Human Settlements and Urban Development (DHSUD), offers affordable housing options to Pag-IBIG members through public-private partnerships. The Pag-IBIG Housing Loan for the 4PH Program allows qualified members to purchase residential units from projects led by local governments. This program is designed to address the housing needs of Filipino workers in each province and city by providing more affordable loan options.
Purpose: To provide affordable housing to qualified Pag-IBIG members through public-private partnerships and government subsidies.
Benefit, amount, and other terms:
- Affordable Pricing: Reduced costs due to Price Subsidy for residential units.
- Lower Interest Rates: Reduced amortization through Interest Subsidy from the national government and DHSUD.
- Amortization Subsidy: Additional financial support from the local government to lower monthly payments.
- In-City Resettlement: Projects located within cities for more convenient living.
- Loan Amount: Up to the price ceiling, based on the lowest of the actual need, desired loan amount, payment capacity, or loan-to-appraised value ratio.
- Loan Term: Up to 30 years, not exceeding the borrower’s 70th birthday.
- Interest Rates: Significantly reduced with examples showing borrower rates as low as 1.25% for a 3-year fixing period.
- Amortization Payments: Options include salary deduction, post-dated checks, auto-debit arrangement, online payments, and payments through Pag-IBIG branches or accredited partners.
6. Multi-Purpose Loan (MPL)
The Pag-IBIG Multi-Purpose Loan (MPL) is a cash loan that assists qualified Pag-IBIG members with various immediate financial needs, including education, health, business capital, home improvement, and more. This program allows members to access up to 80% of their total Pag-IBIG Regular Savings.
Purpose: To provide financial assistance for a wide range of personal needs.
Benefit, amount, and other terms:
- Loan Amount: Up to 80% of the member’s total Pag-IBIG Regular Savings.
- Interest Rate: 10.5% per annum, with interest during the grace period.
- Loan Term: 2 to 3 years, with a default term of 3 years if not specified.
- Loan Release: Options include crediting to a disbursement card, bank account, or check.
- Loan Payments: Monthly payments via salary deduction, over-the-counter, or approved payment modes, with penalties for delays.
- Penalty for Late Payments: 1/20 of 1% per day of delay.
7. Health and Education Loan Programs (HELPs)
The Pag-IBIG HELPs provides loans for Pag-IBIG members to cover educational and healthcare expenses for themselves and their families. Funds are directly credited to HELPs-accredited schools and hospitals, with members enjoying discounts at partner institutions.
Purpose: To assist members in financing education and health-related expenses.
Benefit, amount, and other terms:
- Loan Amount: Up to 80% of the member’s total Pag-IBIG Regular Savings.
- Interest Rate: 10.5% per annum, with no processing fees.
- Loan Term: Easy installment plans of 6, 12, 24, or 36 months.
- Payment Methods: Salary deduction, payments at Pag-IBIG branches, or through accredited partners’ outlets and online channels.
- Renewal: Available after specific monthly payments based on the loan term.
- Discounts: Exclusive discounts at HELPs-accredited institutions.
8. Calamity Loan
The Pag-IBIG Fund Calamity Loan provides immediate financial assistance to members in areas declared as calamity zones by the government. Members can borrow up to 80% of their total Pag-IBIG Regular Savings to address financial needs during disasters.
Purpose: To offer financial relief to members affected by natural disasters and other calamities.
Benefit, amount, and other terms:
- Loan Amount: Up to 80% of the member’s total Pag-IBIG Regular Savings, considering any outstanding loans.
- Interest Rate: 5.95% per annum, with amortization during the grace period.
- Loan Term: 2 to 3 years, with a default term of 3 years if not specified.
- Loan Release: Options include crediting to a disbursement card, bank account, or check.
- Loan Payments: Monthly payments via salary deduction, over-the-counter, or approved payment modes, with penalties for delays.
- Penalty for Late Payments: 1/20 of 1% per day of delay.
- Offsetting: Immediate offsetting against the borrower’s TAV for justifiable reasons like total disability, health separation, or unemployment due to layoffs.
Video: Pag-IBIG Fund Benefits
For a quick audio-visual rundown of the Pag-IBIG Fund programs and benefits for members, please watch this video from Rampver Financials:
Summary
Pag-IBIG’s cash assistance and loan programs are vital tools for Filipinos seeking financial stability, homeownership, and emergency support. To take full advantage of these benefits, explore the options that best suit your needs and secure your financial future and security by applying for the appropriate Pag-IBIG programs today.