What Pag-IBIG Fund programs and benefits you should know about |
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What Pag-IBIG Fund programs and benefits you should know about

by MyProperty.phPublished: July 25, 2017Updated: August 7, 2018

Make the most of your Pag-IBIG membership by knowing more about what solutions the fund offers

Pag-IBIG Fund Programs Member Benefits MyProperty Philippines Lamudi Housing Fair

A key aspect in real estate, housing loans are often significant in determining the type and size of the home that a buyer can get, if at all. In the Philippines, arguably the most common option is a mortgage from the Home Development Mutual Fund. Also known as the Pag-IBIG fund, the HDMF is responsible for the administration of affordable shelter financing for Filipinos employed locally and abroad.

While membership in the Pag-IBIG Fund is mandatory for those earning at least Php1,000 per month, many are under the assumption that basic housing loans is the most that the fund offers. To increase awareness regarding programs, Pag-IBIG took part in the Lamudi Affordable Housing Fair, held last July 15 and 16, 2017 at the Glorietta 3 in Makati, sharing some basics regarding what it offers its members.

1. Provident Savings

A mandate of the Pag-IBIG Fund is to “establish, develop, promote, and integrate a nationwide sound and viable tax-exempt mutual provident savings system suitable to the needs of the employed and other earning groups.” With that is the fund’s Provident Savings, a program that consists of member’s total accumulated contributions, employer counterpart contributions, if any, and dividend earnings.

Together, these total accumulated savings (TAV) are credited to the member’s account in the event of any of the official grounds for withdrawal. Among these are the maturity of the membership, the member's permanent and total disability or insanity, or their permanent departure from the country, among others. Under Provident Savings are programs that apply to mandatory and voluntary members.

Pag-IBIG Savings
- Included in mandatory membership
- Php100 monthly contributions required, a rate that has applied since the 1980s
- Dividends earned through the program is government guaranteed and exempt from 20 percent withholding tax
- 20 years membership period

Higher Investment Return through Modified Pag-IBIG 2 (MP2) Savings
- Can be entered voluntarily
- Has a higher yield than the regular Pag-IBIG savings program
- Minimum deposit/contribution is Php500, which can be done at any time.
- 5-year maturity period

Apart from savings, the Pag-IBIG Fund also offers solutions that members can use for home purchase or improvement, calamities, and other financial emergencies.

Immediate Assistance through the Multipurpose Loan Program
- For active members who have made at least 24 monthly contributions
- If with an existing Pag-IBIG loan, it must not be in default to apply
- Members can borrow a loan amounting to as much as 80 percent of his/her TAV
- Interest is 10.75 percent per annum under a 24-month repayment period with a 2-month grace period

Emergency Support through the Calamity Loan
- Financial assistance for Pag-IBIG members in calamity stricken areas
- Features a 5.95 percent interest rate per annum, the lowest in the market.

Pag-IBIG Loyalty Card
- Loyalty program affording cardholders as much as a 50 percent off on medicine at Pag-IBIG partner drugstores
- Earns cardholders Peso points on groceries and fuel when they purchase at partner-supermarket Puregold and fuel provider Petron.
- Also affords cardholders up to 15 percent discount on tuition fees with Pag-IBIG partner schools
- As of 2017, the Pag-IBIG Loyalty Card program has 169 partner establishments and counting

2. Home Lending Programs

Of course, no discussion about Pag-IBIG programs and benefits is complete without mention of its housing loan programs. As mentioned previously, however, most members are most aware of only its regular home loan. What Pag-IBIG offers, however, is a little more extensive.

Regular Housing Loan
- Regarded to have the Lowest Ever Interest Rate for a Regular Housing Loan, at 5.5 percent per annum subject to loan repricing after a year
- Maximum amount of Php6 million can be borrowed under the program
- Borrowers are allowed to take out more than one regular housing loan, provided existing ones are not in default
- Includes the option of having two co-borrowers

Affordable Housing for Minimum-wage Earners
- Features a subsidized interest rate for the first five years of the loan term
- Maximum term is 30 years
- Interest rate can be as low as 3 percent per annum for a maximum loan of Php450,000
- The maximum loan amount is Php750,000, with an interest rate of 6.5 percent
- Loan payments may be as low as Php1,897.22 per month

3. Home Insurance

Apart from mortgage solutions, the Pag-IBIG Fund also offers its members home insurance options that help them secure both their homes and the loans taken out with the corporation.

Mortgage Redemption Insurance
- The MRI’s main purpose is to render the housing loan fully paid upon passing of the borrower, given the amortization payments are up to date.
- It pays the loan in full when it is determined that the borrower is under total permanent disability.
- The MRI also provides amortization support of up to Php500,000 in case of terminal illness, and grants experience refund wherein 20% of the insurer’s profits are refunded to the insured borrower.
- Principal borrowers and co-borrowers are covered by the MRI to the extent of their individual loan entitlements.

Fire and Allied Perils Insurance
- Home insurance for properties subject to Pag-IBIG loans. Coverage includes fire, earthquake, flooding, and other natural disasters and accidents.

The Pag-IBIG Fund constantly implements reforms and often aims to introduce new programs that are intended to ensure the provision of more benefits to members. For the more information on the Pag-IBIG Fund’s programs, visit


For a comprehensive guide on the rules, regulations, and functions of the Home Development Mutual Fund, as well as additional articles related to the HDMF, visit the Lamudi Pag-IBIG Fund page.


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