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Home Development Mutual Fund (HDMF) or Pagtutulungan sa Kinabukasan: Ikaw, Bangko, Industriya at

Gobyerno (PAGIBIG)

The Home Development Mutual Fund (abbreviated as HDMF), more popularly known as the Pag-IBIG Fund, is a
Philippine government-owned and controlled corporation under the Housing and Urban Development
Coordinating Council responsible for the administration of the national savings program and affordable shelter
financing for Filipinos employed by local and foreign-based employers as well as voluntary and self-employed
members. It offers its members short-term loans and access to housing programs.

Membership to the fund is exclusive to all Filipino citizens who are or ought to be covered by the Social
Security System (SSS), provided that actual membership in the SSS shall not be a condition precedent to the
mandatory coverage in the fund. It shall include, but are not limited to:

A private employee, whether permanent, temporary, or provisional who is not over sixty (60) years old;

A household helper earning at least ₱1,000 a month. A household helper is any person who renders domestic
services exclusively to a household such as a driver, gardener, cook, governess, and other similar occupations;

A Filipino seafarer upon the signing of the standard contract of employment between the seafarer and the
manning agency, which together with the foreign ship owner, acts as the employer;

A self-employed person regardless of trade, business or occupation, with an income of at least ₱1,000.00 a
month and not over sixty (60) years old;

An expatriate who is not more than sixty (60) years old and is compulsorily covered by the Social Security
System (SSS), regardless of citizenship, nature and duration of employment, and the manner by which the
compensation is paid. In the absence of an explicit exemption from SSS coverage, the said expatriate, upon
assumption of office, shall be covered by the Fund.

An expatriate shall refer to a citizen of another country who is living and working in the Philippines.

All employees who are subject to mandatory coverage by the Government Service Insurance System (GSIS),
regardless of their status of appointment, including members of the judiciary and constitutional commissions;

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;

Filipinos employed by foreign-based employers, whether they are deployed locally or abroad or a combination

Voluntary Membership
Membership is also extended to individuals of at least 18 years old but not more than 65 years old under their
voluntary membership program. However, the said individual shall be required to comply with the set of rules
and regulations for Pag-IBIG members including the amount of contribution and schedule of payment. In
addition, they shall be subject to the eligibility requirements in the event of availment of loans and other
programs/benefits offered by the Fund.

The following shall be allowed to apply for voluntary membership:

Non-working spouses who devote full-time to managing the household and family affairs, unless they also
engage in another vocation or employment which is subject to mandatory coverage, provided the employed
spouse is a registered Pag-IBIG member and consents to the Fund membership of the non-working spouse;

Filipino employees of foreign government or international organization, or their wholly owned instrumentality
based in the Philippines, in the absence of an administrative agreement with the Fund;

Employees of an employer who is granted a waiver or suspension of coverage by the Fund under RA 9679;

Leaders and members of religious groups;

A member separated from employment, local or abroad, or ceased to be self-employed but would like to
continue paying his/her personal contribution. Such member may be a pensioner, investor, or any other
individual with passive income or allowances;

Public officials or employees who are not covered by the GSIS such as Barangay Officials, including Barangay
Chairmen, Barangay Council Members, Chairmen of the Barangay Sangguniang Kabataan, and Barangay
Secretaries and Treasurers;

Such other earning individuals/groups as may be determined by the Board by rules and regulations.

Benefits of the Fund

Housing Loan

The most popular program benefit of the Pag-IBIG Fund offers assistance to its members by providing cheap
financing for their housing needs. HDMF accomplishes this by working in partnership with the local Real Estate
Developers and arranging affordable loans to real estate buyers (Pag-IBIG members).

The loan had a lower interest rate compared to the prevailing rate in the market and payable in longer terms.
Pag-IBIG Fund offers a home loan at a low interest rate of 4.5% (for ₱450,000 loan) with a loan term of up to 30
years. A qualified member can get a maximum loan amount of up to ₱ 6 Million.

Short Term Loan

Similar to the Government Service Insurance System (GSIS) and Social Security System, the HDMF also offers
financial assistance to qualified member by granting short term loan. There are two types of loans members
are qualified to avail:

Multi-Purpose Loan (MPL)

This program aims to provide financial assistance to members for house repair, minor home improvement,
home enhancement, tuition or educational expenses, health and wellness, livelihood; or other purposes. To
avail the program, a member must made at least twenty-four (24) month membership savings, or the total
savings is equivalent to twenty-four (24) membership savings and must have at least one (1) contribution
within the last six (6) months as of month prior to date of loan application.

For members who have withdrawn their contributions due to membership maturity, the reckoning date of the
updated 24 contributions shall be the first contribution following the month the member qualified to withdraw
his MS due to membership maturity. If a member has an existing Pag-IBIG Housing Loan, the account must not
be in default as of date of application. Should a member have an existing multi-purpose and/or calamity loan,
the account/s must not be in default as of date of application.

Calamity Loan

For members affected by unforeseen calamity like flood, fire, tropical cyclones/ typhoons, volcanic eruption
and other similar cases. Members can borrow up to 80% of their Total Accumulated Value (TAV) subject to the
terms and conditions of the program. Calamity Loan Interest rate is 5.95% per annum. The loan is amortized
over 24 months, with a grace period of 3 months. Paying period begins on the 4th month following their check

Provident Savings

Membership contributions to the Pag-IBIG fund is a member's individual savings, which a member can
withdraw at the maturity date. Pag-IBIG Fund makes clear that members' contributions, plus that their
employer will earn dividend. All that money, called Total Accumulated Value (contributions plus dividend) will
be available when it reaches maturity. Unlike the money in a bank regular savings where the interest rate is
given, member's earnings in the fund is not readily foreseen ahead of time. It essentially participating in an
investment and membership earnings will depend on the overall performance of that investment.