HOUSING

AGENCY
PAG-IBIG/HDMF

Group 8 CALSADA, DRIO, FRIAS, PAKINGAN,

PANGANIBAN, AND RAMOS
Introduction
Housing Agency is a government body working
with the Department of Housing, Local
Government and Heritage, Local Authorities and
Approved Housing Bodies in the delivery of
housing and housing services.

Home Development Mutual Fund

The birth of the Home Development Mutual Fund
(HDMF), more popularly known as the Pag-IBIG
Fund, was an answer to the need for a national
savings program and an affordable shelter
financing for the Filipino worker. The Fund was
established on 11 June 1978 by virtue of Presidential
Decree No.
How does Pag-
IBIG/HDMF work?
Pag-IBIG Fund sets aside at least seventy percent (70%) of its annual
net income and credits it proportionately to its members' Pag-IBIG
Savings as dividends. This means that the more you save, the higher
dividends you shall earn
• Pag-IBIG Fund invests at least 70% of its investible funds in housing finance, as required
by its Charter. It also invests in government securities and corporate bonds.
• How much is the contribution for HDMF? Employers shall remit two percent (2%) of the
monthly compensation of the contributing member as counterpart contribution. The
employer is not entitled to deduct from the wages or remuneration of or, otherwise, to
recover from the employee the employer's contribution.
• What can I do with a Pag-IBIG Housing Loan?
You may use the Pag-IBIG Housing Loan to finance any one or a combination of the following:
-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.
-Construction or completion of a residential unit on a residential lot owned by the borrower or a
relative of the borrower;
-Home improvement;
-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.
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:
• Your actual need
• Your desired loan amount
• Your loanable amount based on your capacity to pay
• Loan-to-Appraised Value ratio
You can easily apply for a Pag-IBIG Housing Loan by submitting your duly accomplished form
and its requirements at any Pag-IBIG Fund branch, or through the accredited partner-
developer from whom you shall purchase your property.
Interest Rate
What is the loan repayment term?

• The maximum payment period for the loan is thirty (30) years, but should not exceed the
difference between age seventy (70) and the present age of the principal borrower.

The interest rates of our Pag-IBIG Housing Loan remain at its lowest Where can I read more about the Pag-IBIG Housing Loan?
levels. We keep our rates low to help you secure a home under the most
• To know more about the Pag-IBIG Housing Loan, you may download Pag-IBIG Fund Circular
affordable terms. The interest rate on your loan is based on the repricing
No. 396, Modified Guidelines on the Pag-IBIG Fund End-User Home Financing Program
period that you choose.
Here are our rates effective 01 January 2022. How much is Pag-IBIG contribution monthly?

• The Pag-IBIG monthly contribution will be 2% of ₱5,000 set maximum limit which the amount
Rates per Repricing Period, effective 01 January 2022 1-Yr*
should be ₱100 (calculated as ₱5,000 x 0.02). In cases when your monthly salary exceeds
₱5,000, your monthly contribution remains at ₱100 and employer's counterpart (2%) also
• 1-Yr* Fixing 5.750%
remains at ₱100. A total of ₱200 monthly contribution.
• 3-Yr Fixing 6.375%
• 5-Yr Fixing 6.625
How is Pag-IBIG maturity calculated? Membership Maturity
• 10-Yr Fixing 7.375%
• 15-Yr Fixing 8.000%
• A total of 240 contributions (12 months x 20 = 240 months) should be made upon
• 20-Yr Fixing 8.625%
membership maturity. If you're a Pag-IBIG Overseas Program (POP) member, you can claim
• 25-Yr Fixing 9.375%
your contributions at the end of five, 10, 15, or 20 years, depending on the option you chose
• 30-Yr Fixing 10.000%
during your membership registration

You may pay your Pag-IBIG Housing Loan in a number of convenient ways, which include:
• A collection servicing arrangement with your employer (if employed), who will then remit
your monthly payments to Pag-IBIG Fund;
• Issuance of post-dated checks;
• Auto-Debit Arrangement (ADA) with a Pag-IBIG Fund partner-bank;
• You may also pay your monthly amortizations via Virtual Pag-IBIG, at any Pag-IBIG Fund
branch near you, or through any of our accredited collecting partners’ outlets or their
online payment channels.
Function The HDMF has three main functions:

Savings Insurance Loans

Savings function involves the application of its mutual
fund, particularly in the form of savings and
investment. This function deals with the collection and
management of the law-mandated contributions of
its members, and in some cases, their employers, as
well as their dividend earnings.
Several Non-Life Insurance Programs are also made HDMF also provides its members with several loan
available by the HDMF: options that may cater to their specific or general
needs.
• The Mortgage Redemption Insurance program
• The Fire and Allied Perils Insurance Program • Housing Loans
• Multi-Purpose Loans
• Calamity Loans

HDMF functions help the ordinary Filipino worker to

finance not only his housing needs, but also his
other immediate and long-term financial needs.
 01 HOUSING LOAN 02 SHORT TERM LOAN

Pag-IBIG Fund offers assistance to
its members by providing affordable
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).
Services Offered
HDMF also offers financial assistance to qualified member by
granting short term loan.
Multi-Purpose Loan (MPL) this 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.
Calamity Loan for members affected by unforeseen calamity like
flood, fire, tropical cyclones/ typhoons, volcanic eruption and other
similar cases.

03 MODIFIED PAG-IBIG 2 (MP2) 04 PROVIDENT SAVINGS

A member's individual savings, which a
A government-backed voluntary savings program that provides
member can withdraw at the maturity date.
tax-free annual dividend. It has a five-year term that requires a
Pag-IBIG Fund makes clear that members'
minimal requirement of ₱500 and without any maximum capital
contributions, plus that their employer will
ceiling.
earn dividend. All that money, called Total
Contributions can be made through various payment channels
Accumulated Value (contributions plus
or via salary deduction through employer arrangement.
dividend) can be withdrawn when it reaches
maturity or 240 months of contributions for at
least 45 years old.
Benefits
What benefits can I get from Pag-IBIG Fund? The Pag-IBIG Loyalty Card Plus
allows you to enjoy exclusive discounts and rewards on your grocery
purchases, tuition fee, hospital bills, fuel expenses, restaurant bills and many
more from our more than 300 partner-establishments nationwide. Multi-
Purpose Loan (MPL) proceeds, MP2 Savings dividends, and other benefits.
• A member’s Total Accumulated Value (TAV) shall consist of the member’s
accumulated contributions, the employer counterpart, if any, and the
dividend earnings credited to his/her account.
• The member’s contributions, inclusive of the employee and employer
contribution, shall earn dividends which shall be distributed annually and
credited to said member’s TAV. Only members with outstanding TAV as of
year-end shall be entitled to dividends declared for that particular year. All
dividend earnings shall be tax-free. The Fund shall credit dividends to the
accounts of members with unclaimed savings, provided the member has
not yet reached age sixty-five (65), and those with pending applications
for provident benefits whose claims disbursement vouchers have not been
prepared as of December 31st .
• A member who transfers to another employer or who becomes self-
employed carries with him his/her TAV.
• A member may avail of the Fund’s various housing loan, short-term loan,
and other benefit programs, provided that he/she satisfies the eligibility
criteria set by the Fund.
• Amember who becomes a member of the Fund after the effectivity of
RA 9679 shall have the option to withdraw his/her TAV after the
fifteenth (15th) year of continuous membership, provided that said
member has no outstanding housing and/or short-term loan with the
Fund at the time of withdrawal. This option shall not prejudice his/her
continuing membership with the Fund.
• A member shall be entitled to receive his/her TAV upon termination of
membership or upon the occurrence of any of the grounds for
membership termination. Any and all pending obligations of the
member shall be deducted from said TAV.
• In the event of a member’s death, his/her legal heirs, as provided
under the Intestate Succession of the Revised Family Code, shall
likewise receive said member’s TAV, less any and all pending
obligations of the member with the Fund. Beneficiaries shall also be
entitled to the additional death benefit grant, the amount of which
shall depend on the member’s TAV and membership status at point of
death.
• The benefits prescribed under RA 9679 shall not be diminished and the
government of the Republic of the Philippines guarantees the payment
of 8 employee and employer contributions as well as the
corresponding dividends to the members when they are due.
 Benefits
Savings
a c
Unlike your voluntary savings in a bank, savings and contributions
to the PAG-IBIG fund guarantee tax-exempted annual dividends.
At the end of your total accumulated value (TAV). The best part is,
the sum of your contributions and dividends will have grown much
more than the same amount stored in the bank even with interest.
Unlike bank, the fact the PAG-IBIG doesn’t charge annual fees
doesn’t hurt either.
End-user Home Financing and
Affordable Housing Loan
b d
Program
Most people remember the actual benefits to their monthly PAG-
IBIG contributions around the time they want to start building a
home. Compared to most financing (EUHF) program loan from the
fund is much lighter on the pockets, in terms of interest.
Calamity Loan
With monsoon season coming up, and the possibility of typhoons
devastating entire communities, it’s good to know that you will
have somewhere to turn to case disaster strikes. If you live in an
area declared to be under a state of calamity, you can loan up to
80% of your TAV, with an interest rate of 5.59% per annum. While
this loan is payable in 24 months, you will have a grace period of 3
months before you need to start paying.
Multi-purpose Loan
While PAG-Ibig seems like it’s solely for big ticket item like homes,
they do have a short-term loan known as the MPL. Like any other
short-term loan, they can be used for things like travel, funding a
small business, bills payment, and even home renovation. Just like
the calamity loan, you can borrow up to 80% of your TAV, payable
in 24 months. The difference lies in the annual interest. Unlike the
calamity loan, the MPL charges 10.75 % per annum.
How to Acquire Should we buy an Acquired Asset from Pag-IBIG?

Assets
st
Purchasing a foreclosed property from Pag-IBIG makes
financial sense for two reasons.

A Pag-IBIG acquired asset is a property that's foreclosed

because the original owner who availed of Pag-IBIG
housing loan failed to pay the monthly amortizations.
• The Pag-IBIG Fund normally gives delinquent borrowers
a chance to buy back their foreclosed property when
they default on their payments. It also offers this buy-
back option to tenants who occupy and rent the
foreclosed properties.
• If the buy-back option doesn't work out, Pag-IBIG offers
the foreclosed property to new buyers at a lower price
via public bidding to recover the unpaid loan and
generate income for the Fund.
• If the sale via auction fails for a certain property, it is
then put up for negotiated sale in which buyers can get
as much as 30% discount
1 2
Pag-IBIG acquired assets
are sold at prices below
the market value.
This enables you to afford a home if
you don't have enough money to
purchase a brand-new property. If
you avail of Pag-IBIG housing loan to
finance a foreclosed property, you'll
have lower monthly amortizations.
Pag-IBIG foreclosed
properties are a
great investment
Buying one gives you an opportunity
to buy low and sell or rent high, not to
mention that the value of real estate
increases over time.
Note: These are sold on an "as is, where
is" basis, which may mean that some
of them may have damaged parts. If a
foreclosed property's condition is less
than ideal, you'll have to spend money
to fix it.
 How to find the list of Pag-IBIG acquired assets online:

01
How to find the
Click the Property Finder link on the Pag-IBIG
Fund website. This will take you to the Pag?IBIG
Fund Acquired Assets page.

list of Pag-IBIG 02 Click the Properties Under Negotiated Sale

acquired assets:
button.

03
• There are two ways to view Pag-IBIG foreclosed property
Select your preferred location (province and
listings: by visiting the Pag-IBIG Fund office or checking
municipality) and price range from the drop
the government agency's website.
down menu.
• To get the list of foreclosed properties in the Pag-IBIG
office, go to the second floor of JELP Business Solutions
Center, 409 Shaw Blvd., Mandaluyong (for properties in Click the Search button. All the available
Metro Manila) or the Pag-IBIG regional branch (for
properties in the provinces). Coordinate with the 04 foreclosed properties for sale based on your
search criteria will appear, including the
Marketing and Sales-Acquired Assets Management Group. following details:

05 Click the View Property/s link to view these

specific details of the property you're interested
in:
How to View the
List of Acquired
Assets Under
Negotiated Sale
STEPS TO PURCHASE
ACQUIRED
PROPERTIES
• Tingnan ang listahan ng mga acquired asset sa website
www..pagibigfund.gov.ph (Properties for Sale/Properties
under Negotiated Sale or Public Auctions) o bumisita sa
pinakamalapit na Pag-IBIG Fund Housing Hub.
• Puntahan at inspeksyunin ang lokasyon ng bibilhing
acquired asset.
• Magparehistro at sagutan ang Purchase Offer Form,
isumite at ihulog ito sa Drop Box, kalakip ang mga
kailangan na dikumento. (Purchase offer, valid ID's,
authorization letter/Special Power of Attorney (SPA) at
Long-Term Installment (LTI) na dokumento.)
• Ang nanalong offeror o buyer ay magbabayad ng
P1,000.00 Reservation Fee (non transferrable/non
refundable) sa loob ng limang (5) araw simula sa
pagtanggap ng Notice of Award.
5. Pagtanggap ng Notice of Conditional Approval of Sale.
6. Pirmahan at isumite ang Deed of Conditional Sale at
ibang dokumento na nagpapatunay ng Loan sa Pag-IBIG
Fund.
7. Simulan ang pagbabayad ng buwanang hulog
pagkaraan ng tatlumpong (30) araw mula sa araw ng
pagpirma ng Deed of Conditional Sale
Paraan ng pagbabayad :
a. Kung Cash na babayaran: Diskwento: 30%
Magbayad ng paunang 5% ng kabuuang halaga kasabay ng pagbayad
ng reservation fee. Ang kabuuang halaga ay dapat na bayaran sa loob
ng tatlumpong (30) araw mula sa araw ng pagpirma ng Deed of
Conditional Sale.
b. Kung Short-Term Installment na babayaran: Diskwento 20%.
Magbayad ng paunang 5% ng kabuuang halaga kasabay ng pagbayad
ng reservation fee. Ang kabuuang halaga ay dapat na bayaran sa loob
ng isang (1) taon na may kaakibat na interest na 6.375%.
c. Kung kukuha sa pamamagitan ng programang pabahay ng Pag-IBIG
o Long?Term Installment (LTI ): Diskwento 10%
Isumite ang kumpletong dokumento sa loob ng Tatlumpong (30) araw
simula ng pagbayad ng reservation fee kasama ang P2,000.00
processing fee, advance 1 year insurance premiums at documentary
stamp ta
Other related top

• Corporate Objectives (5 yr plan)

• Service Pledge
To improve the quality of life of every Filipino, we in the Pag-IBIG Fund, commit
to provide member-focused quality service, through enhancement of the
provident savings and home financing system.

• Member Relations Department

• Support Services
• Facilities and Offices Services Department
• General Services Department
• Human Resource Management Department

• Payment Services
• E- Services
• Contact Center

• Promo rates
• Loyalty Card Plus
• Other to be discussed.
 “Tapat na Serbisyo, Mula sa
Puso”

tungo sa
kinabukasang puno ng Pag-IBIG