Know Your Pag-ibig Benefits and How to Maximize It

Department of Human Settlements and Urban Development (DHSUD) owns and controls the Home Development Fund (HDMF), which was set up in 1978. Also called Pag ibig Fund by many, this institution was established in order to help Filipinos get into the housing market at a reasonable price. Members of the Pag-IBIG fund may make use of a variety of other perks, including catastrophe and multi-purpose loans, provident benefits, and death benefits.

How to apply as a Pag ibig Fund Member online

You can now conveniently apply as a Pag ibig fund member at the comfort of your home through the pag ibig fund website:

• Visit the Pag-IBIG website at www.pagibigfund.gov.ph to sign up for membership.

• Click on the e-services. You will then be directed to a new page. In here, Click "Membership Registration."

• Input your Name and Date of birth. These are required information so that Pag-IBIG can verify whether you already have an existing account with them or not.

• In order to avoid spam, make sure to enter the code provided at the bottom of this page then click "Proceed".

• Make sure to fill out and submit the application form.

How much should I pay for my Pag ibig Contribution?

It doesn't matter whether you're an OFW or not; your Pag-IBIG contribution is determined by your job status. You can check below for some brief information on everything you need to know about contribution payments.

For Employees and Employers

For a monthly salary of at least Php 1, 000 to Php 1, 500:

• Employee's Rate 1%

• Employer's Rate 2%

• Total Rate 3%

For a monthly salary of above Php 1, 500:

• Employee's Rate 2%

• Employer's Rate 2%

• Total Rate 4%

For Self-employed

• For a monthly income of at least Php 1, 000 to Php 1, 500: 1% rate

• For a monthly income of above Php 1, 500: 2% rate

For Overseas Filipino Workers or OFWs

This is for OFWs whose employers are required by law to provide Pag IBIG insurance coverage.

For a monthly salary of at least Php 1, 500 and below:

• OFW Rate 1%

• Foreign Employer's Rate 2%

• Total Rate 3%

For a monthly salary of above Php 1, 500:

• OFW Rate 2%

• Foreign Employer's Rate 2%

• Total Rate 4%

For OFWs who are not covered by Pag IBIG because their employers are exempted.

• For a monthly salary of more than Php 1, 500: 2% rate

An Overview of Contributing Members' Pag IBIG Benefits

The Pag ibig fund is recognized for its low-interest home loans. Through this, Pag ibig Fund Members are able to buy their ideal home without having to pay high mortgage rates. But aside from these helpful home loans that they offer, this government institution also provides additional Pag IBIG perks that you may claim.

Let's find out more about these other Pag ibig benefits and how to maximize them.

1. Pag IBIG Savings Program

Pag-IBIG contribution advantages, such as a savings facility, are one of the numerous available Pag-IBIG perks that a pag ibig fund member can enjoy. This is where your recurring contributions go each month. Another great thing about this pag ibig regular savings, your monthly savings are multiplied by two if you're a Pag-IBIG member who's also working. This will also allow you to have increasing dividends which means that they will continue to rise in value every year. In addition, it's also a piece of great information to take note that by raising your monthly Pag-IBIG donation, you will be able to receive additional dividends.

Your Pag IBIG savings may be withdrawn if any of the following occurs:

• During a member maturity or those members who have contributed for at least 20 years or for at least 240 months.

• Retiring at the age of 60, which is optional, or 65 years of age, which is mandatory.

• a medically-induced absence from employment or service

• Absolute incapacity or insanity

• Permanent departure from the country

• If you die, your legal heirs will get the funds you've saved in addition to any death benefits.

• When a member or any of their immediate family member has a critical illness.

2. Pag IBIG MP2 Program

The Pag-IBIG MP2 program is an optional savings facility for current or former Pag-IBIG members who want to receive even bigger yearly dividends. This Pag-IBIG savings program is available even if you already have a standard Pag-IBIG savings membership. You can have savings of at least Php 500 in your Pag ibig MP2 Program.

Your Pag-IBIG mutual fund investment receives tax-free dividends at a greater rate than the dividend rate of the ordinary programs. The Pag-IBIG Fund's yearly net revenue generates 70% of the dividends paid out to its beneficiaries.

Payment of Pag-IBIG MP2 profits may be made in the following ways:

• Following its 5-year maturity, with MP2 dividends compounded yearly.

• Through a yearly dividend. Your dividends are credited to a Pag-IBIG-accredited bank account if you have one.

3. Pag IBIG Loyalty Card Plus

There are several advantages to using the Pag-IBIG Loyalty Card Plus, and it's worth your time to learn about them all.

Pag ibig Loyalty Card Plus was introduced in 2014, and since then Pag-IBIG members have enjoyed extra benefits and services via the loyalty card program. In fact, there are already more than 300 Pag-IBIG-affiliated restaurants that provide discounts and prizes to their members.

Already a member of pag ibig fund but don't have the Loyalty Card Plus yet? To get a Pag-IBIG Loyalty Card Plus, you can follow these 5 easy steps:

1. Visit the nearest Pag-IBIG branch in your area.

2. Allow a member of the Pag-IBIG team to verify your membership number.

3. Pay the card fee of PHP 125 after filling out the application form.

4. They will ask to take a picture of you and get your fingerprint for identification purposes.

5. You may get your Pag ibig Loyalty Card Plus and PIN mailer after all of your information is verified.

4. Pag IBIG Housing Loans

Pag IBIG Fund is popularly known in the country to provide affordable housing loans as a common benefit for members of the organization. When it comes to housing loan programs, Pag-IBIG provides two: the Affordable Housing Loan or AHP for Minimum Wage Earners and the End User Home Financing Program or EUF.

Let's take a look on the difference between these two pag ibig housing loan:

Affordable Housing Loan (AHP)

For the affordable housing loans of Pag ibig Fund for minimum wage earners, they give a Loan amount up to PHP 750,000 to its members and interest rate of 3% per annum.

End User Home Financing Program (EUF)

Meanwhile, for their End User Home Financing Program, Pag ibig fund can give a Loan amount for as high as Php 6 million to its members with an interest rate of 5.5% per annum.

Interested to avail these housing loans from through your pag ibig contribution? Here are the requirements to get these pag ibig benefits:

• Must have been an active member of the government institution with at least 24 months of pag ibig contribution.

• Not more than 65 years old

• Housing Loan Application (HLA) form

• Proof of income

• Tax declaration

• Two valid IDs

• At least a monthly gross revenue of PHP 14,000 (for AHP Program)

• Vicinity map

Process for the Pag IBIG Housing Loan Application

Now that you already know the requirements that you need to prepare, it's time for you to familiarize yourself with the application process:

1. Prepare all the required documents for the housing loan application

2. Submit these documents and the completed HLA form to the Pag-IBIG branch closest to where you live or work.

3. Pay the PHP 1,000 processing fee.

4. You have to wait first to receive the Notice of Approval or Letter of Guarantee before you can proceed to the next step.

5. Once you received it, you can now get your loan proceeds.

5. Pag IBIG Mortgage Redemption Insurance

Another great pag ibig benefit that you can get from your pag ibig contribution is MRI. A Mortgage Redemption Insurance or MRI is necessary when you receive a Pag-IBIG home loan. To protect your mortgage in the case of your death or severe illness, Pag-IBIG offers this non-life insurance policy to its members. However, you will be responsible for the MRI costs.

6. Pag IBIG Calamity Loan

You may apply for a Pag-IBIG calamity loan if you reside in a region devastated by a natural disaster. As a Pag-IBIG member, you'll have access to these and other pag ibig benefits. It intends to help members in disaster-stricken regions in the event of flooding, fire, or any other tragedy. You may borrow up to 80% of your entire Pag-IBIG savings fund, which includes your pag ibig contribution every month.

It's important to take note that the President's Office or your Local Sanggunian must proclaim your region to be in a state of calamity. Also, you must apply for a calamity loan within 90 days after the declaration of the state of emergency has been made. In any case, if you already have an existing Pag-IBIG loan, you'll need to alter your payments to take advantage of this Pag-IBIG benefit.

In order to apply for a Calamity Loan from pag ibig fund, you have to prepare the following requirements:

• Must have been an active member of the government institution with at least 24 months of pag ibig monthly contributions.

• Your area must be declared under a state of calamity

• Calamity Loan application form

• Two (2) valid IDs

Process for the Pag IBIG Calamity Loan Application

1. You may do this by filling out a form on the Pag-IBIG fund website.

2. You have to print the document, sign it, and then scan it. Since the signature element is optional, you may omit it if you want.

3. A completed application and a copy of your valid ID should be forwarded to the closest Pag-IBIG branch or to your employer's HR representative.

7. Pag IBIG Salary Loan

Pag-IBIG also provides a salary loan, in case you didn't know. Also called the Pag-IBIG multi-purpose loan, this short-term loan from Pag-IBIG allows you to pay for home renovations, bills, tuition, and a variety of other expenses. In order to borrow up to 80% of your entire Pag-IBIG savings, you must repay the loan within 24 months.

To avail the pag ibig salary loan benefit, you have to prepare the following documents:

• Must have been an active member of the government institution with at least 24 months of pag ibig monthly contributions.

• Multi purpose Loan application form

• Two (2) valid IDs

8. Pag IBIG Provident Benefits

Pag-IBIG members may get their savings at the age of 60, which is voluntary, or at the age of 65, which is required. If you're above the age of 45, you may be eligible for provident benefits. However, you must have contributed for at least 20 years or 240 months in order to be considered eligible for this benefit.

For the requirements, a pag ibig member must prepare the following:

• You must be between 45 to 65 years old

• Must have at least 20 years or 240 months of contribution

• Provident Benefits or APB Claim form

• Two (2) valid IDs

• PSA birth certificate

• SSS or GSIS retirement voucher

• Notarized Certificate of Early Retirement for private employees aged 45 to 65

• Order of Retirement, Updated Statement of Service, and State of Last Payment for Navy, Army, and AFP members

9. Pag IBIG Death Benefits

A deceased Pag-IBIG member's legal heir or beneficiary may claim death benefits if the individual did not claim their savings while they were still alive since the membership maturity hasn't been reached yet. In contrast to SSS, whose death benefits and retirement payments are separate, Pag-IBIG does not give funeral or burial benefits.

Here are the Pag ibig death benefits requirements:

• Certificate of No Marriage (CENOMAR) if applicable

• Death Certificate of the member issued by PSA

• Marriage Contract if applicable

• Notarized Affidavit of Guardianship

• Notarized Proof of Surviving Legal Heirs

• Other documents that may be required

Process of Claiming the Pag-IBIG Provident or Death Benefits

Below are the steps that you need to follow in claiming your Pag IBIG Provident or Death Benefits:

1. Go to a Pag-IBIG branch nearest you and hand in your completed Form APB

2. You must provide the necessary documents that need to be submitted.

3. Wait for the release of your claims.

4. Most applications are processed within eight to twenty working days.

Getting yourself familiarized with the different pag ibig benefits, like the multi purpose loan, can help you to save money for other things like a home investment. Having a multi purpose loan can financially assist you in paying your monthly amortizations when you get a bank home loan.

Lumina Homes offer this kind of flexible payment scheme that supports real estate investors in easing their burden for the home payment. They can even maximize the pag ibig benefits and use them in their home renovations and repairs.

To know more about the different home model units that Lumina Homes offer, you can visit their website and follow their Facebook Page.