Useful Benefits of Pag-IBIG Members You Might Not Know

Published: July 25, 2017 | Updated: June 29, 2020 | Posted by: Carlo Miguel Castañeda | Government Services

You already know that being a member of Home Development Mutual Fund (HDMF)[1] – more commonly known as the Pag-IBIG Fund – means that you get access to home loans to finance a home of your own.

The agency itself boasts upwards of 13.8 million members and total assets of Php 350 Billion, generated from contributions made monthly by members. As such, there are useful benefits of Pag-IBIG members you might not know, and here’s a look at a few of them.

calculator-calculation-insurance-finance-53621Asset expansion

You’re aware that the Pag-IBIG Fund can be used to facilitate the funding necessary to purchase or improve upon a home, but there are also two types of contributions to the fund that can be used to let you save more money that can eventually be allocated elsewhere.

Under the agency’s Providence Savings Program, any member can accumulate contributions that can eventually be claimed – on top of the contributions made monthly. Below are the two types:

  • Pag-IBIG I – The more commonly known version of the program, where employers and employees share the monthly Php 200 minimum contribution. Once 24 contributions are reached, members can choose to take out a multi-purpose loan, calamity loan, or any of the agency’s many available housing loans.

Additionally, contributions will mature and can be claimed upon reaching 240 contributions, or by the 20th year of membership.

  • Modified Pag-IBIG II – Also known as the MP2 Program, this one is a wholly voluntary and additional five-year savings facility. It is accessible to members already enrolled in the Pag-IBIG I program.

In this program, members make a second contribution – at a minimum of Php 500 per share – that matures in five years. After this, a member can claim their savings, plus dividends earned.

Applications for the MP2 program is as simple as speaking to your human resources officer and stating that you’d like to enroll, after which you’ll be asked to sign a form that serves as confirmation.

If you are self-employed, you may also enroll in this program. You may download the MP2 enrollment form online.
You may also enroll in the MP2 program through Pag-IBIG’s online enrollment system[2].

Multiple housing loans

As of April 2015, members are allowed to take out more than one housing loan. Under Circular No. 353, Pag-IBIG members are allowed to have more than one housing loan, providing that they remain within certain guidelines.

Naturally, said loans must be within the member’s capacity to pay, but other conditions included the following:

  • The total or aggregate loan value – including any outstanding loan balances and the amount of the new loan – must not exceed Php 6 Million.

NOTE: In case they are a co-borrower, their proportionate share in the outstanding balance will be included in the total computation.

  • In the case of multiple loans, should one of the accounts default, all other loans shall be considered a default.

If you want to compute for Pag-IBIG’s loan amortizations, you may use their Housing Loan Calculator.

Higher earnings for bigger contributions

As you may be aware, members and employers share a monthly contribution, deducted from your monthly pay.

As you increase these contributions, the maximum loanable amounts that you can borrow will increase. The percentage of growth for the amount you contribute also grows, though the actual amount is based on the yearly income of the fund.

Larger contributions also play a huge part in housing loans, as gross monthly income plays a part in the computation of the loanable amount.

Pag-IBIG fund hotline

If you have immediate concerns and inquiries, you may reach Pag-IBIG at: 724-4244 (Pag-IBIG) – 24/7 Call Center operation. Pag-IBIG will give your complaints/inquiries considerable attention according to the following:

Final thoughts

These are just some of the useful benefits of Pag-IBIG members, not to mention the fact that members also have access to a wide range of payment and remittance facilities nationwide.

The purchase of a home is something that a lot of Filipinos aspire towards, as an expression of financial maturity and independence.

If you’re looking for the basic requirements to apply for a Pag-IBIG loan, here’s a very helpful article. Click on the banner below if you’re looking to compare loan options.
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