Pag-IBIG Home Equity Appreciation Loan: Everything to Know

Jay Pagkatotohan

Jay Pagkatotohan

Last updated May 05, 2023

Pag-IBIG offers more than just housing loans for first-time home buyers. Did you know that Pag-IBIG also lets you apply for a loan using your property’s equity? Enter the Pag-IBIG Home Equity Appreciation Loan (HEAL). 

Think the Pag-IBIG HEAL’s primary purpose is only for home improvement, renovation, or any other property-related expenses? The good news is you can use it for other purposes, too. 

Keep reading to learn more about this government loan program. 

What is the Pag-IBIG Home Equity Appreciation Loan? 

what is pag-ibig home equity appreciation loan

The Pag-IBIG HEAL is a loan where you can borrow money based on the equity of your property mortgaged with the Pag-IBIG Fund. To put it simply, the Pag-IBIG HEAL is a loan where your home becomes collateral. 

What is equity in Pag-IBIG Housing Loan? Equity refers to the portion or value of the property that you actually own.[1] 

You can use the Pag-IBIG HEAL for a variety of purposes, such as the following: 

  • Home improvement
  • Education expenses (e.g., tuition, school supplies, etc.)
  • Business capital
  • Travel and leisure
  • Health and wellness 
  • Purchase of furniture, appliances, and gadgets
  • Purchase of a car
  • Payment of credit card bills and utilities

Read more: 

What are the Pros and Cons of the Pag-IBIG Home Appreciation Loan? 

Check out the Pag-IBIG HEAL Program’s advantages and disadvantages to decide if this loan option is right for you. 

👍 Pros of the Pag-IBIG HEAL Program

  • This loan is readily available. As long as your property is mortgaged with Pag-IBIG, you can apply for it. 
  • The Pag-IBIG HEAL is a multi-purpose loan. You can use it for different purposes, from your needs to your wants. 
  • Depending on your equity, the loan amount can be high. This means you can fund big-ticket purchases and endeavors, such as a car or home improvement. 
  • The Pag-IBIG HEAL comes with flexible payment terms, giving you enough time to settle your loan. 

👎 Cons of the Pag-IBIG HEAL Program

  • Your home automatically becomes the collateral. Failure to completely settle your obligation means losing your property. 
  • The loan is offered only to Pag-IBIG Housing Loan borrowers
  • Even if you’re a Pag-IBIG Housing Loan borrower, your application is still subject to review. Borrowers with good standing have greater odds of getting their applications approved.  
  • If you have an outstanding Pag-IBIG Short-Term Loan or STL in arrears, your application may be rejected unless you settle your arrears first. 


What is the Loanable Amount of the Pag-IBIG Home Appreciation Loan? 

pag-ibig home appreciation loan - loanable amount

The Pag-IBIG HEAL Program’s loan amount will be based on the lowest of the following amounts: 

  • Your repayment capacity
  • Your desired loan amount
  • The latest Loan-to-Value Ratio, which is based on 60% of the latest appraised value of the Pag-IBIG mortgaged property less the total outstanding balance of your existing Pag-IBIG Housing Loan/s
  • Your maximum aggregate loan value, which is based on ₱6 million less the total outstanding balance of your existing Pag-IBIG Housing Loan/s

Important notes:

  • If your loanable amount exceeds ₱1 million, Pag-IBIG will carry out a technical inspection. 
  • If you wish to get a loanable amount that’s more than ₱1 million, Pag-IBIG will conduct a reinspection to know the current appraised value of the property. This is because a property’s value increases over time, and a reappraisal may serve as a basis for increasing your loan amount. 
  • If you borrow less than ₱1 million or you don’t want a reappraisal, Pag-IBIG will conduct a credit investigation instead. 

What is the Interest Rate of the Pag-IBIG Home Appreciation Loan? 

According to Pag-IBIG, the interest rate of the loan will depend on the repricing period that you’ll choose.

What are the Payment Terms of the Pag-IBIG Home Appreciation Loan? 

Compared to other home equity loans, the Pag-IBIG HEAL offers longer repayment terms. You can pay your loan for up to 30 years as long as you won’t exceed the age of 70 upon the loan’s maturity. 

How to Apply for a Pag-IBIG Home Appreciation Loan

How to Apply for a Pag-IBIG Home Appreciation Loan

Ready to apply for a Pag-IBIG Home Appreciation Loan? Here’s everything you need to take note of:

👉 Eligibility Requirements

  • Must be an active Pag-IBIG member with at least one monthly contribution (membership savings) in the last six months
  • Must have an existing Pag-IBIG Housing Loan that has been approved or taken out for at least five years as of the application date
  • Must not be more than 65 years old at the application date and more than 70 years old at the end of the loan term
  • Must have the legal capacity to acquire and encumber real property, whenever applicable
  • Must pass the background, credit, and relevant checks conducted by Pag-IBIG
  • Must not have outstanding Pag-IBIG Short-Term Loan or STL in arrears at the time of the application

👉 Document Requirements 

  • Completely filled out Pag-IBIG Home Equity Appreciation Loan application form[2] 
  • For co-borrowers: completely filled out Pag-IBIG Home Equity Appreciation Loan application form[3] 
  • For co-borrowers who need to express their consent to the new HEAL application: Conformity Form for New/Subsequent Housing Availment[4]
  • Proof of income (e.g., Certificate of Employment, latest ITR, latest payslip, OFW employment contract, POEA standard contract, etc.)
  • One valid ID (e.g., passport, PRC ID, SSS Card, Pag-IBIG Loyalty Card, OWWA ID, Postal ID, Voter’s ID, etc.)
  • Latest real estate tax receipts as of the quarter immediately preceding the application date
  • Health Statement Forms

👉 Application Process: 6 Steps to Avail of the Pag-IBIG HEAL

pag-ibig home appreciation loan - application process

  1. Go to Virtual Pag-IBIG[5]  and click Apply for and Manage Loans.
  2. Enter your Pag-IBIG Housing Account Number (HAN) and provide the necessary information for Pag-IBIG to evaluate your eligibility.
  3. If you qualify for the program, upload a copy of your documentary requirements to the system. If you prefer to submit your requirements in person, just visit any Pag-IBIG branch. 
  4. Pay the processing fee via Virtual Pag-IBIG or at Pag-IBIG’s accredited partners. 
  5. If your application is complete and in order, you’ll receive a Notice of Approval (NOA) and other loan documents via Virtual Pag-IBIG. You’ll be notified about these via email and text message. 
  6. Print and sign all the post-approval documents. Submit them to any Pag-IBIG branch in person or via a courier service. Remember that your NOA should be both signed and notarized. 

Apply for a UnionBank personal loan via Moneymax

How to Pay My Pag-IBIG Home Appreciation Loan

Your Pag-IBIG HEAL’s due date will be the same as your existing Pag-IBIG Housing Loan’s due date. The most convenient repayment method is salary deduction through Employer Collection Servicing Agreement (CSA).

But you can also check out the following options: 

  • Payment via Virtual Pag-IBIG
  • Accredited collection partners
  • Auto-debit arrangement (ADA) with participating banks 
  • Post-dated checks

Final Thoughts 

The Pag-IBIG Home Equity Appreciation Loan is one of the most attractive options for funding your goals in life.

It’s convenient since you can easily access it as long as you’re a Pag-IBIG Housing Loan borrower. It’s practical, as its interest rates are generally low. More than that, you get to enjoy flexible repayment terms. 

Despite the program’s appeal, we recommend delving deeper into its features. This will help you decide if the loan is compatible with your lifestyle and repayment capacity. 

Looking for other loan options? You might want to consider no-collateral loans. Check out these personal loans from reputable lenders in the Philippines.

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Jay is a marketing communications professional who specializes in short-form and long-form content. He has written ads for TV, radio, print, and digital. He has also produced corporate blogs, magazine features, white papers, product listings, reviews, and press releases for clients here and abroad. When he’s not writing, Jay plays the piano or takes pictures for his visual diary. Follow Jay on LinkedIn.


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