The Pag-IBIG Home Equity Appreciation Loan (HEAL) offers eligible borrowers an opportunity to tap into the value of their mortgaged property. This program allows qualified Pag-IBIG Housing Loan members to access additional funds at low interest rates, providing financial flexibility for various needs like home improvements, education, or travel. By maintaining good payment records, borrowers can take advantage of this loan to achieve personal goals and enhance their quality of life.
This guide provides a detailed overview of the Pag-IBIG HEAL program, eligibility criteria, required documents, application steps, and repayment options. If you’re planning to explore this loan program, read on to learn how it works and how you can benefit from it.
Loan Features and Benefits
The Pag-IBIG HEAL offers a convenient and flexible financing option for housing loan borrowers who wish to maximize the value of their property.
Features:
- Low-interest rates based on chosen repricing periods.
- Flexible repayment terms of up to 30 years via the following methods:
- Salary deduction through employers.
- Post-dated checks.
- Auto-debit arrangement with participating banks.
- Online payments via Virtual Pag-IBIG or accredited partners.
- Eligibility for active Pag-IBIG members with good payment records.
- Loanable amount based on the following factors:
- Desired Loan Amount: The amount you wish to borrow.
- Capacity to Pay: Determined by your financial standing.
- Loan-to-Value Ratio: Calculated as 60% of the current appraised value of the mortgaged property, minus the outstanding balance of your housing loan.
- Aggregate Loan Value: Maximum loanable amount of ₱6 million, less your current housing loan balance.
Note: The lowest value among these factors will determine the amount you can borrow. If your desired loan exceeds ₱1 million, Pag-IBIG may conduct a technical inspection or reappraisal of the property.
- Wide range of purposes, including funding for the following:
- Home Improvement: Renovations, repairs, or upgrades.
- Education: Tuition fees and other school-related expenses.
- Business Capital: Additional funding for entrepreneurship.
- Health and Wellness: Medical expenses or fitness-related needs.
- Household Purchases: Furniture, appliances, or electronic gadgets.
- Leisure Activities: Travel, recreation, or special occasions.
- Debt Payments: Settling credit card bills or utilities.
- Collateral and Co-Borrowers
- The mortgaged property under your housing loan serves as collateral.
- Up to three co-borrowers can be added, provided they meet eligibility requirements and are related within the second degree of consanguinity or affinity.
- Insurance Coverage: HEAL accounts are protected by Mortgage Redemption Insurance (MRI) or Sales Redemption Insurance (SRI) and Non-Life Insurance (NLI) on the property.
Benefits:
- Access to additional funding for personal and financial goals.
- Simplified application process online via Virtual Pag-IBIG.
- Payment alignment with existing housing loan due dates.
- Coverage by Mortgage Redemption Insurance (MRI) or Sales Redemption Insurance (SRI) for added security.
- Available to borrowers up to 65 years old, with maturity up to age 70.
Target Beneficiaries
It was designed to support specific groups, such as:
- Pag-IBIG Housing Loan borrowers with accounts active for at least five years.
- Regularly paying borrowers with a consistent 12-month payment history.
- Active Pag-IBIG Fund members contributing within the last six months.
- Borrowers aged 65 or younger at the time of application, with maturity allowed up to age 70.
- Individuals with no outstanding Pag-IBIG Short-Term Loan (STL) arrears.
- Principal borrowers and co-borrowers of existing housing loans meeting eligibility standards.
- Self-employed, locally employed, or overseas Filipino workers (OFWs) with verifiable income.
Eligibility
To apply, borrowers must meet the following requirements:
- Membership and Age:
- Must be an active Pag-IBIG member with at least one monthly membership saving in the last six months.
- Should not exceed 65 years old at the time of application or 70 years old at loan maturity.
- Loan and Payment History:
- Must have an existing Pag-IBIG Housing Loan approved or taken out at least five years before the application.
- Should have paid housing loan dues regularly and on time for the last 12 months.
- Credit Standing:
- Must pass a background, credit, and employment/business check conducted by Pag-IBIG Fund.
- Should have no outstanding Pag-IBIG Short-Term Loan (STL) in arrears. If there are arrears, they must be updated before applying.
- Legal Capacity:
- Must have the legal authority to acquire and encumber real property, as applicable.
Required Documents
Before applying for the program, applicants must first gather the following documents:
- Application Forms:
- Duly accomplished HEAL Application Form (HQP-HLF-858_V01).
- Co-borrower’s form, if applicable (HQP-HLF-868_V01).
- Proof of Income:
- Locally employed: Payslips or income tax returns.
- Self-employed: Business permits or financial statements.
- Overseas Filipino Workers (OFWs): Contract or remittance records.
- Identification and Property Documents:
- One valid government-issued ID.
- Updated Real Estate Tax Receipt for the property.
- Health and Conformity Forms:
- Health Statement Forms.
- Conformity Form for co-borrowers, if required.
Application Procedures
Follow these steps to apply for the Pag-IBIG HEAL:
Step 1: Prepare Your Documents
Complete the necessary forms and gather all required documents listed above.
Step 2: Submit Your Application Online
Log in to Virtual Pag-IBIG and navigate to the loan application section. Provide your Pag-IBIG Housing Account Number and other required details. Upload the documents online or submit them at the nearest Pag-IBIG branch.
Step 3: Pay the Processing Fee
Pay the required fee via Virtual Pag-IBIG or accredited payment centers.
Step 4: Receive the Notice of Approval
Once your application is processed, Pag-IBIG will notify you through text or email. Access your Notice of Approval (NOA) and related documents via Virtual Pag-IBIG.
Step 5: Submit Post-Approval Requirements
Print, sign, and notarize the NOA. Submit it along with other post-approval documents either in person or through a courier.
Where to Secure the Application Form
Application forms for the Pag-IBIG HEAL Program can be downloaded for free from the Virtual Pag-IBIG portal or obtained at any Pag-IBIG Fund branch. The processing fee for HEAL applications is minimal and can be paid online through Virtual Pag-IBIG or at accredited payment partners. Processing timelines vary, but borrowers typically receive updates via email or text within a few business days of submission.
Video: Applying for the Pag-IBIG HEAL Program
The Pag-IBIG Home Equity Appreciation Loan (HEAL) is an affordable way for members to access additional funds using the equity of their mortgaged property. With flexible terms, low-interest rates, and a long repayment period, this loan is an excellent option for improving your home, funding education, or achieving other financial goals. To learn more about the application procedures and requirements of this program, watch this video from gineerbens below or visit the Virtual Pag-IBIG website to start your application today!