Guide to Pag IBIG Updated on November 2022
I think you will agree with me when I say:
Filipinos of various generations value homeownership. And we associate Pag IBIG contribution and loans with affordable housing loans.
As you raise your own family, you get the growing desire to have your own home where your children can live comfortably, safely, and securely. For others, they want to give a comfortable home to their parents, who have sacrificed so much to provide a better future.
And among millennials nowadays, owning a house shows independence and financial stability.
But wait… there’s more:
Pag IBIG is more than housing programs. It brings more benefits to Filipinos who want a secure financial future and a better retirement.
If you are not using these benefits, then you are missing out.
Find out how it helps Filipinos with their finances, homeownership, and everyday needs.
This article has two parts: how it works and what benefits you can enjoy.
Ever wonder what the word stands for?
Employed Filipinos see it as a mandatory contribution deducted from their payroll.
Pag-IBIG means Pagtutulungan sa Kinabukasan: Ikaw, Bangko, Industria at Gobyerno.
It is an agency that provides a national savings program. Also, it is possible with the combined efforts of the four sectors in our society:
Also, it can be defined as the keeper of your savings until you reach 65 years old.
In addition, it is your emergency fund in times of need.
It’s so easy to say you can save your extra cash, but having mandatory savings automatically deducted from your salary is a big help.
Currently, it serves the employed, self-employed with informal income, overseas Filipino Workers (OFWs), and non-earning spouses.
Aside from Housing Loans, it also offers:
It helps members grow their money too.
The Fund earns by investing at least 70% of its investible funds in various channels like housing finance.
Additionally, it utilizes funds for its Short Term Loan Programs in government securities, time deposits, and corporate bonds. The money it grows from investing is then used for the benefit of the members.
Technically, HDMF and Pag-IBIG Fund are the same.
Filipinos get confused about whether the HDMF and the Pag-IBIG Fund were different or had the same roots back when Executive Order No. 538 mandated the Home Development Mutual Fund (HDMF) merge with the National Home Mortgage Finance Corporation (NHMFC).
Together, the operating agencies provide Filipinos with the most affordable housing loans from the government.
Yet, on December 14, 1980, when it (as we now know it) was again made independent from the NHMFC. Even now, Filipinos and government offices still use HDMF and Pag-IBIG Fund interchangeably.
Being a member is a practical step to securing your future home.
You can either be a mandatory member or a voluntary member.
Filipinos 18 to 65 years old and not mandated to be a member can be voluntary.
Want to be a member?
All eligible Filipinos can be a member and get a Pag IBIG number.
“How can I get my Pag-IBIG number online?” you’d ask.
Nowadays, you can easily do it online in the comfort of your own home.
No need to join the crowd in a branch. Just follow these simple steps:
To start your registration, you need to visit www.pagibigfund.gov.ph.
Scroll down until you see the “e-services” option.
It will direct you to the online services page, where you have to choose “Membership Registration.”
Click on the image.
It will direct you to the “Online Membership Registration” page.
The registration is only for new members who want to register their membership information. If you have no existing online membership yet, click the “Continue” button.
Key in your full name and date of birth.
If you do not have a middle name, don’t forget to tick the box “No Middle Name.” Do not type in N/A or Not Applicable.
Check if everything is accurate and has the proper spelling before entering the captcha code.
Click “Proceed” if done.
Take the time to fill in all the needed information in your online membership application form. Make sure that you have filled in all the necessary details.
You will see eight tabs that you need to fill up:
Remember that the system automatically logs out if the page has been idle for 15 minutes. So if this happens to you, you can log back in and finish the application.
All of your information must be accurate. Key in the captcha and then click “Submit.”
Once you click submit, it will direct you to a new page where you can get your Registration Tracking Number (RTN).
You can use your temporary ID number to start tracking your registration.
Also, you will get a text confirming that you have finished your online application.
That is why you have to request your permanent Pag IBIG MID Number. Then receive it via text, call, email, or chat. It may take two to three days to process your application and verify your personal details.
Here are five ways to get your Pag IBIG Number.
To request your permanent Pag-IBIG MID number, simply text:
IDSTATYour RTNYour Birthday in MM/DD/YYYY.
Sample: IDSTAT 123456789123 12/24/1979
If you are a Globe or TM subscriber, send it to 0917 888 4363.
For Smart, Talk n Text, Sun, and Red Mobile users, send your requests to 0918 898 4363.
You may also call (02) 724-4244 to talk to the customer services representative. This service is open 24/7.
Please provide your full name, mother’s maiden, birth date, and address. It is to verify that they are giving the right person your Pag IBIG MID Number.
If you have an active email (Google/Yahoo), you may send your request to contactus@pagibigfund.gov.ph. Don’t forget to include your full name, birth date, and address.
Another way to send an email request is to fill in the Email Us form on the official website.
Make sure that your contact number and email address are both active. You will receive a confirmation message acknowledging that it received your email.
PagIBIG now has a chat support system to assist its members. Simply follow Pag IBIG on their Facebook account. Then, send a private message including your full name (including your middle name), date of birth, your mother’s full maiden name, and your Registration Tracking Number.
If there is a nearby branch and you prefer personal assistance, then you can visit the branch. Bring a valid government ID for verification and faster transaction.
How much is the monthly contribution? How can I calculate my Pag IBIG contribution? Is your company deducting the right amount from your salary?
Employees, employers, OFW, and voluntary members must know the required monthly contribution. This way, you can maximize the PagIBIG benefits when you need them the most.
Your contribution should be at least 1% of your monthly salary. Your employer will contribute an equivalent of 2% of your monthly salary. That is if you are earning less than ₱1,500 a month. Meanwhile, if you make more than ₱1,500 a month, your mandatory contribution is 2% of your salary but not more than ₱100.
Even if you earn more than ₱5,000, the company should only deduct ₱100 as your mandatory Pag IBIG contribution unless you have requested to increase it. After that, your employer will contribute an equivalent of 2% of your monthly salary.
Take note that you can voluntarily increase your PagIBIG contribution to P2,950. Simply tell your payroll or HR officer that you want to increase your monthly contribution, and they will deduct it from your salary.
Pag-IBIG members can verify their paid contributions in four (4) different ways:
Currently, only Overseas Filipino Workers (OFWs) can check their contributions online. If you are an OFW, follow these steps:
Use a browser and make sure that you have good internet connectivity before you start.
Visit the PagIBIG website and click the “e-services.”
Click the image of the OFW Member’s Contribution Verification.
Ensure your Pag-IBIG MID number and name are correct before entering the captcha code and proceeding.
Check your contribution details. It includes the month and amount of contributions that you have made.
You can get approved for a higher loan amount. While the mandatory contribution is only up to P100, you can request an increase of up to ₱2,950. For example, let’s say you want to get a housing loan for a house worth ₱4 million. If you want to get a housing loan of as much as ₱4 million, you must pay a monthly contribution of ₱2,000 a month.
The same goes for Multi-Purpose Loans (MPL). The MPL loan amount is up to 80% of your total contribution. Thus, the more monthly contribution you pay, the higher the loan amount you can acquire.
The member’s Total Accumulated Savings or TAV comprises the member’s monthly savings, employer counterpart share, and total annual dividend earnings.
PagIBIG FUND guarantees to refund your total accumulated savings consisting of your overall contributions, the employer counterpart contributions, and the dividend earnings credited to your account.
There are six circumstances when the Fund members can withdraw their contributions:
The membership maturity is based on the 20 years of membership from the initial date of the first contribution.
You must have remitted at least 240 monthly membership contributions at the time of membership maturity.
Now, 20 years is a very long time, and many of us have had gaps when we cannot pay for our Pag IBIG contributions. So, what should you do if you have contribution gaps?
Pag IBIG members are required to claim their Pag IBIG savings upon reaching the age of 65.
But in case of early retirement, you can also claim it under these circumstances.
If you are at least 60 years old, you can claim your Pag IBIG total accumulated savings. But, you must provide a certified copy of your birth certificate.
If you had an early retirement at the age of 45 but are not older than 60, you can also claim your Pag-IBIG savings provided that you have the following:
The following disabilities are considered total and permanent. Therefore, having these will be sufficient grounds for the member to claim the Fund benefits.
Sometimes, members can no longer render work due to severe health conditions.
These are illnesses, injuries, or physical and mental impairments that involve continuous care from a healthcare provider.
To claim your Pag IBIG savings, you must present a Physician’s certificate with a medical abstract.
If you decide to live abroad permanently, you can claim your savings.
You will need to provide a clear copy of your Passport with an Immigrant Visa or its equivalent and a Notarized Sworn Declaration of Intention to Depart from the Philippines Permanently.
If a member dies, the Fund savings will be divided among the declared heirs as mandated by the New Family Code.
The claimant must provide the following:
If you wish to claim your Pag IBIG contributions, here is what you should do.
Visit the branch where your contributions have been consolidated. Currently, it has no centralized records. It means it will not record your contribution to one branch in another if you move to another area unless you make a consolidation request to keep your records updated.
Make sure you have consolidated contributions in the branch where you submit your form.
Once you get verified, their representative will issue you the Provident Benefits Acknowledgement Receipt. It will indicate when you can claim your check. Also, you have the option to have your claim credited to your bank account.
Want to invest your money at a lower risk?
If you are risk-averse, then MP2 may be a good idea to start saving money.
Pag IBIG 1 is the usual savings in Pag IBIG that will let you borrow a low-interest housing loan and salary loan.
Modified Pag IBIG 2 can be defined as a voluntary savings program that matures after 5 years. It is designed to have a higher yield than the Pag-IBIG I membership program. However, this program is strictly for savings. You can’t avail of a loan against your MP2 savings.
Many Filipinos choose to take the risk with MP2 for the following reasons.
There are two ways to claim the payout: Withdraw in a lump sum after five years or choose an annual MP2 dividend payout. It means you can withdraw the dividends yearly.
Yes, you can also withdraw your savings in a lump sum before it matures in cases of:
Yes. Members are allowed to open multiple MP2 Savings Accounts.
If unclaimed, your MP2 savings will continue to earn dividends, but the rate will be the same as Pag-IBIG 1.
After two years, it will no longer earn any dividends.
If you skip your contribution, you can contribute more in the coming months. The savings will remain under your MP2 account. And there will be no penalties.
If you choose the annual MP2 Dividend payout and then decide to pre-terminate your savings, you will receive your total savings. But it does not include the dividend you earned.
If you chose the compounding of MP2 Dividends (5-year maturity) but suddenly want to withdraw your savings, you can only get 50% of the dividend.
Submit the MP2 Savings Application Form to the nearest branch. Do not forget to bring your valid government ID, passbook, or ATM card to your nominated bank account.
You can remit to your MP2 account via these channels:
Pag-IBIG Housing Loan is the most affordable housing loan for Filipinos.
Regular members can borrow as much as ₱6 million. Moreover, the law prohibits Pag IBIG from increasing its interest rate beyond 2% per year. On the other hand, banks do not have a cap on their interest rates.
Buying a house is the usual dream for many Filipinos. It has become a status symbol showing that you are financially mature enough to handle such a costly purchase.
You must be practical enough to get the most affordable housing loan available.
There are two ways to apply for a housing loan:
Considering that you are reading this part of the article, we will assume that you are already a member. If not, you must register online first and satisfy the required number of contributions before proceeding.
You can use the Pag-IBIG housing loan for various residential property purposes.
Did you know that Pag IBIG offers two types of loans?
The Affordable Housing Loan Program is exclusively offered to members earning less than ₱17,500 monthly.
If you are qualified for this housing loan, you can borrow up to ₱750,000 and enjoy an interest rate as low as 3% for the first five years.
Pag IBIG’s Regular Housing Loan Program is offered to Filipinos earning above-average gross monthly income. Under the regular program, you can borrow as much as ₱6 million with an interest rate as low as 5.375% (1 year) up to 10% (30 years).
Three factors determine how much you can borrow if you apply for the Regular Housing Loan Program. It will consider these four. The lowest value will be your loanable amount.
The Pag IBIG housing loan is available for members who can qualify for these eligibility requirements.
Below is the list of what you must prepare for a Pag IBIG Housing Loan.
There are two ways to start your housing loan application:
Members can now start their housing loan application online through the Online Housing Loan Application (OHLA). Simply visit the OHLA website. Then, click on the “Click here to Apply.”
Then Log in with your Pag IBIG MID or RTN, first name, and last name. Enter the captcha code and click “Continue” to proceed.
Expect to be directed to the appointment page, where you have to key in your personal information, loan request info, and preferred branch that you want to visit on a set date and time.
Once you click “Submit,” you will receive a confirmation letter containing your set schedule. You will receive a text message with your reference number or Housing Loan Application Tracking Number.
Setting an appointment online is highly recommended to Pag IBIG members living in NCR, where most branches are usually crowded.
If you live in other areas, you can visit the nearest branch even without an appointment.
If you live within NCR, you can personally file your Pag IBIG housing loan application at Servicing Department, 2/F JELP Business Solutions, 409 Shaw Blvd., Mandaluyong City, or at any Pag-IBIG branch office.
Meanwhile, if you live outside NCR, you can go to the nearest branch.
When you get there, make sure to do these three steps:
It usually takes around 17 days before you receive your application status.
Once you receive your NOA, you must sign the loan agreements and complete the additional requirements.
If you fail to provide the needed additinal NOA requirements within 90 days , you will receive a Notice of Deficiency instead of a check.
It will give you a call once your check is ready for pickup. You will need two valid IDs to claim your check at the Cash-Disbursement Division-Loans Support Services Department/Members Services Branch.
You will need to bring 12 PDCs (post-dated checks) if you opt to pay your loan through post-dated checks.
If you can’t pick up your check, your authorized representative must present a notarized Special Power of Attorney (SPA) and two valid IDs for each of you and the representative.
On the other hand, if the loan purpose is to Purchase of Residential Unit, a Lot Purchase, or a Purchase Lot and Construction of House, the seller can pick up the check.
The Pag IBIG Salary Loan or Multi-Purpose Loan is a program that provides financial assistance to members.
You can use it for minor home improvement, livelihood, utility bills, medical expenses, car repair, vacation, tuition fees, or new appliances and furniture.
Here are the steps to getting a Salary Loan:
The qualified members shall be allowed to borrow an amount based on the following.
Certificate of Net Pay Pag IBIG Sample
Submit your completed application form and documents to the nearest branch. You will be issued a Pag-IBIG Citi Prepaid Card. It is where your loan proceeds will be credited.
The processing time can take from one to two weeks. If your contribution records are not consolidated, it will take up to 23 working days.
The interest rate is 10.5% per annum. You can pay your salary loan for up to a maximum period of 24 months.
Your loan payment will start three months after you receive your loan proceeds.
If employed, your company must remit your payment on or before the fifteenth (15th) day of each month. Also, you can pay directly to the fund via auto-debit arrangement, over-the-counter payment, and remittance to the Pag-IBIG office.
If you are an active member, you must have at least one monthly membership savings for the last six (6) months before your loan application date.
Once you can repay six (6) monthly amortizations, you can be eligible to apply for a new salary loan from them. Your outstanding balance will be deducted from your loan proceeds.
The Pag IBIG Calamity Loan is cash assistance given to Fund members who have been devastated by unforeseen calamities like a flood, fire, typhoons, volcanic eruption, and similar instances.
If your area is declared to be under the State of Calamity, you can apply for a calamity loan.
You should file for a calamity loan within 90 days after your area is declared in the State of Calamity.
If you wish to secure financial aid from Pag IBIG during these trying times, follow these steps.
Visit the nearest branch and submit all your required documents. Ensure all your documents and copies are clear and readable to ensure a smooth process.
The processing of your loan will only start if you can present the complete requirements.
Applicants can borrow as much as 80% of the total accumulated value (TAV). On the other hand, the interest rate is 5.95 per annum.
You can pay the loan over a maximum period of 24 months. Also, you can start paying 3 months after you receive your loan.
If you received the proceeds of your calamity loan in January, you could start paying on or before the fifteenth (15th) day of April.
You can also settle your loan in advance, even before the maturity of your loan.
Over the years, we have always had the same sentiments: government processes are slow, and it usually takes days to weeks to get what you request. It is no exception. So how can you ensure that your benefits will be processed faster?
You may be able to present the complete paperwork, but have you checked each page’s readability? The documents you pass to their office are scrutinized to validate your information. Of course, this is to avoid identity theft from claiming your benefits. If the copies of your documents are not clear enough, you might have to go back to submit better copies, which means you would waste your time and effort.
Discrepancies in information can prolong your loan or lump sum. Before submitting your application form, check the spelling of every piece of information. Also, it is better to write in print than in cursive. It helps avoid confusion in your spelling. For example, your “u” could look like a “v” if you’re not careful enough.
Pag IBIG loans have fewer requirements than banks, but this facility is strict with the required monthly contributions.
If you are employed, you still have to check if your employer remits your contributions monthly. Simply send an email request, a private Facebook message, or call the Pag IBIG hotline to check your contribution details. You will also see how much more you have to remit to qualify for a loan.
Members who want to apply for a loan must not have a Pag IBIG housing loan, MPL, or calamity loan account in default.
Whether you have a housing loan, salary loan, or a calamity loan, paying your installment on time is important to avoid penalties and negative records as a borrower. In addition, paying on time will increase your creditworthiness as well and will quicken your loan process.
The Pag IBIG Fund provides various opportunities to help us reach our dreams and have a better future. From a housing loan to a modified savings program and salary loans, it can surely give us hope that someday we will have a home we can call our own and enough savings to live comfortably during our retirement years.
Ensure to update Pag IBIG information online and consolidate it to get the best out of your Pag IBIG benefits. It makes your transactions faster. Add to that, if you get a loan, be sure to pay on time to avoid penalties and other late payment charges. You will also find it easier to get another loan if you have good payment records for your short-term loans.
Take advantage of the opportunities offered by Pag IBIG. Share about them with your families and friends so they can enjoy and optimize their benefits too.
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