The Pag-IBIG Fund is well-regarded as a government agency due to its mandate of offering affordable housing loans to the Filipino people. This is because of the fact that they remain the number one deliverer of housing loans in the country. Aside form their well-known Pag-IBIG Housing Loans, there’s a lot more to that. Here’s how to maximize your Pag-IBIG contributions.
One of Pag-IBIG’s noble intention is to give working Filipinos a housing loan that is not saddled with high interest rates, compared to those offered by the private banks. However, aside from the housing loans, there are other lesser-known benefits that are being offered by the Pag-IBIG Fund.
These benefits, if maximized, could be of vital importance to those who are knowledgeable enough to take advantage. The following is a lowdown on some of the Pag-IBIG offerings for its members who are diligently remitting their contributions, and how you if you are one of those active members, can avail of them.
1. Pag-IBIG Savings Program
The Pag-IBIG Fund Regular Savings Program is the main savings vehicle that Pag-IBIG offers to its members. This is where the monthly contributions of members are funneled, and yearly dividend profits are also awarded. When the maturity date (20 years from the date of membership) comes, the cumulative savings are returned to the member. Retirement or other valid grounds can also make the return date of total savings earlier than the maturity date. As for the amount of monthly contribution, it is worth PHP 100.00, per the applicable provisions of Republic Act No. 9679.
Luckily, employed members can enjoy the counterpart share of their employers, which is equal also to PHP 100.00 monthly thereby, doubling their contributions.
This has a collateral effect of increasing the annual dividend income since there are more “shares” upon which the dividends could be based. Also, members need not go to their nearest Pag-IBIG branch monthly, since their employers are duty-bound to do it for them via salary deduction. On the other hand, Overseas Filipino Workers (OFWs) and those who are self-employed must remit their monthly contributions at any Pag-IBIG branch or its allied collecting firms.
To arrive at larger dividends, it is incumbent upon you to increase your contributions monthly. As they say, a penny saved is a penny earned. You can do this by filling out the “Request for Upgrading Savings” Form and forward this to your employer after doing so. For the OFWs and self-employed, this is still the way to go, in order to increase your monthly contributions.
These are some of the valid grounds upon which you can withdraw your Pag-IBIG Regular Savings:
- Membership maturity
- Separation caused by health-related reasons
- Permanent departure from the country
- Lifetime disability or insanity
- Critical illness of the member or any of his immediate family member
2. Pag-IBIG Loyalty Card
Are you searching for a rewards card that will earn you many discounts, rebates, and the likes? Maybe you have heard of the Pag-IBIG Loyalty Card. A card who tie-ups with restaurants, pharmacies, educational institutions, and others that should offer you a multitude of rewards and price cuts.
Why should you get a Pag-IBIG Loyalty Card?
1. It can also act as a cash card.
Pag-IBIG has enlisted the services and expertise of Union Bank and Asia United Bank to bring its vision of the loyalty card being a cash card into fruition. By being a cash card, the Pag-IBIG Loyalty Card is now equipped with an EMV chip for faster and safer financial transactions. Pag-IBIG is not resting on its laurels, as it seeks to partner with more banks to expand the reach and capabilities of its cash card to all its card-carrying members
2. It is an inexpensive Valid ID that lasts for a lifetime.
The Pag-IBIG Card, unlike other government-issued IDs, need not be renewed. This represents a welcome relief to those who have to brave the interminable queues at government agencies just to have their IDs renewed. Its validity spans as long as the cardholder lives, which means that purchasing one is only a one-shot deal, saving the applicants so much time, money and effort. It is also one of the most affordable government IDs at present, with the capabilities of a debit card to boot.
3. It offers wide-reaching discounts and benefits.
Arguably, the main motivation for members in getting a Pag Ibig Loyalty Card is its diverse array of discounts and rewards. These discounts are exclusive only to cardholders, which makes getting one all the more compelling. The discounts run the whole gamut of categories, from dining, travel, to even educational ones. Name the discount, and most probably the Pag Ibig Loyalty card has it.
How do you get a Pag-IBIG Loyalty Card?
For first-timers, you will be eligible to receive the latest version, the Pag-IBIG Loyalty Card Plus. For those that possess the older iteration of the card, you need not worry since this is still valid for discounts from allied establishments and companies. Still, if you desire to get the latest Pag-IBIG Loyalty Card Plus, you should stick to the new application procedures. Here are the requirements to bring when you are planning to get a Pag-IBIG Loyalty Card:
- One (1) valid ID
- Permanent Membership ID (MID) number
- Must be an active Pag Ibig member
For those who have no MID number, chances are you are not a Pag Ibig member yet. Do not fret, since the application is made easier by visiting the Pag Ibig online registration page. The main prerequisite is first having your permanent MID number. After doing so, you can adhere to the following procedures:
- Download and fill out the Pag Ibig Loyalty Card application form;
- Go to the nearest Pag Ibig Fund branch and submit the application form you just completely filled out;
- Prepare and shell out PhP 125.00 for the registration fee, and remember to not lose the receipt for future claiming of the card;
- Go to the biometrics area to register your picture and fingerprints;
- Double-check all the information you disclosed for potential mistakes before confirming;
- Go to the bank employee to claim and receive your Pag Ibig Loyalty Card Plus and PIN mailer.
3. Pag-IBIG MP2 Program
The MP2 Savings Program, arguably the best savings program the government has to offer, is offered by the Pag-IBIG Fund. This savings scheme is not compulsory and is accessible for those who aim to hit higher savings and dividend goals, on top of those received via the Regular Savings Program. The ones qualified to join are the following:
- Active Pag-IBIG Fund Members; and
- Former Pag-IBIG Fund Members with other sources of monthly income and/or Pensioners, regardless of age, with at least 24 monthly savings prior to retirement.
If you decide to enroll, you are required to shell out at least PhP 500.00 monthly. Your upward mobility is not hindered in the MP2 program, since any amount contributed above the minimum required is possible and accepted by Pag-IBIG.
However, should you decide to remit more than Php 500,000.00, you would have to produce a personal or manager’s check.
In short, you may opt to contribute PhP 500.00 monthly to your MP2, or you may choose the route of plunking down a one-time savings of a larger amount even in millions of pesos, provided you have the wherewithal to do it.
MP2 offers tax-free dividends that are larger than those offered by the Regular Savings Program. If you have disposable income available, MP2 is the obvious and better choice. Dividends are culled mostly from Pag-IBIG Fund’s net annual income. To give you a bird’s eye view, the average MP2 dividend rate from 2016-2018 is at 7.65%, which is nothing to sneeze at.
Your MP2 dividends are gettable through the following avenues:
- During full withdrawal of your MP2 Savings after its 5-year maturity period with your MP2 Dividends compounded yearly;
- Through yearly pay-out with your MP2 Dividends added to your savings or checking account enrolled in any of Pag-IBIG Fund accredited banks or other banks that Pag-IBIG may choose to partner with soon. For members who have no Philippine bank account, especially the OFWs, MP2 Dividends shall be remitted to them through checks.
Once the maturity period lapses, you can choose to enroll in a new MP2 Savings Account. Also, you may get your whole MP2 Savings once maturity arrives.
If you choose to withdraw your MP2 Savings beyond the maturity date, it shall persist to earn you dividend income for two more years. However, the dividend rates by then shall be based on the rates of the Pag-IBIG Fund Regular Savings Program. After the said two years, dividend earnings shall stop accruing, so you must withdraw all your MP2 money post haste.
Luckily, members are given the privilege to start and sustain multiple MP2 Savings Accounts. MP2 Savings are guaranteed and fully backed by the government, which gives you the peace of mind that the original or face value of your savings shall remain intact. However, the yearly dividend income may fluctuate due to a plethora of factors, such as the financial performance and viability of Pag-IBIG Fund in its entirety.
Pag-IBIG Fund allocates 70% of all of its investible funds in the housing market, as commanded by its Charter.
Whatever is left is invested in relatively rock-solid and safe vehicles such as government securities and corporate bonds.
For those interested, you can start your MP2 journey by handing over a completely filled out MP2 Savings Application form at the Pag-IBIG Fund Branch nearest to you, and do not forget to arm yourself with the following:
- Valid Identification Card; and
- Passbook or ATM Card of your bank account
You may download the MP2 Savings Application form here.
Finally, you can forward your MP2 contributions via the following avenues:
- Salary deduction
- At any Pag-IBIG Fund Branch; or
- At any Pag-IBIG Fund-accredited collection partner.
4. Pag-IBIG Calamity Loan
The Pag-IBIG Fund Calamity Loan Program’s main aim is to dole out speedy monetary aid to its members who live or reside in areas that were recently struck by calamities. To be eligible as an active member, you must live in a locality that was included in the areas declared by the Office of the President or the Local Sanggunian under a state of calamity. Also, you must at least have two years of membership savings (MS) and adequate proof of income to qualify. For the ones who have prevailing Pag-IBIG Fund Housing Loan, MPL and/or Calamity Loan, your eligibility hinges upon your updated payments to these loans.
The qualified ones may borrow up to 80% of their total Pag-IBIG Regular Savings. If you happen to have an unpaid Multi-Purpose and/or Calamity Loan, the amount of loan proceeds you will collect shall be the difference between the 80% of your total Pag-IBIG Regular Savings and the unpaid balance of your loan/s. The good thing is the Calamity Loan only offers a low interest rate worth 5.95 percent yearly.
The loan can be paid in two years with the first payment being deferred after the loan release.
The employed ones can pay their dues monthly via salary deduction. For the self-employed ones, and for the OFWs, they may all pay up at any Pag-IBIG Branch.
The proverbial clock is quickly ticking when it comes to the availment of this loan, however, since borrowers could only avail within ninety (90) days from the declaration of a state of calamity.
5. Pag-IBIG Multi-Purpose Loan
The Pag-IBIG Fund Multi-Purpose Loan or MPL Program is a cash loan that eligible members can borrow to aid them in filling any financial need such as the following:
- Minor Home Repairs
- Business Capital
- Tuition Fee
- Buying of furniture, cellphones
- Payment of monthly utilities
- Life Milestones
- Automobile Repair; or
- Other Needs
Only actively contributing members with at least twenty-four (24) monthly membership savings (MS) and adequate proof of income can be eligible for this loan. For the ones who have prevailing Pag-IBIG Fund Housing Loan, MPL, and/or Calamity Loan, your eligibility hinges upon your updated payments to these loans.
The qualified ones may borrow up to 80% of their total Pag-IBIG Regular Savings. If you happen to have an unpaid Calamity Loan, the amount of loan proceeds you will collect shall be the difference between the 80% of your total Pag-IBIG Regular Savings and the unpaid balance of your Calamity Loan.
The beauty of this is that the larger your accumulated Pag-IBIG Regular Savings, the higher loan amount you can get through the MPL. The MPL’s interest rate is at 10.5 percent yearly, and a noticeable part of the income generated by the Pag-IBIG Fund through MPL is paid back to its members via dividend income. The loan is payable within two years, with the first monthly payment being deferred.
The employed ones can pay their dues monthly via salary deduction. For the self-employed ones, and for the OFWs, they may all pay up at any Pag-IBIG Branch.
Your MPL is renewable once your total monthly amortization is equivalent to six months.
Logically, the unpaid amount of your existing MPL Loan shall be deducted from your new MPL’s loan proceeds.
6. Pag-IBIG Death Benefits
When a Pag-IBIG member passes away, his heirs shall inherit the death benefit computed by the Pag-IBIG Board of Trustees, on top of the member’s TAV minus any unpaid Pag-IBIG liabilities/loans.
The maximum death benefit is worth PHP 6,000.00. If the deceased member was an actively contributing member upon his death, the death benefit is worth PHP 6,000.00. If he was an inactive member, the TAV is lower than PhP6,000.00, and the death benefit is the same value as the inactive member’s TAV. If the deceased member was active, and his TAV amounts to PHP 6,000.00 or higher, the death benefit shall be pegged at PHP 6,000.00.
Here are some Death Benefits requirements:
• Death Certificate
• Notarized Proof of Surviving Legal Heirs
• Certificate of No Marriage (CENOMAR) or Marriage Contract, whichever is applicable
• Notarized Affidavit of Guardianship
• Other documents that may be demanded
7. Pag-IBIG Provident Savings Program
The Pag-IBIG Provident Savings Program is another way for a member to save for his future needs. The member’s contributions and the employer’s counterpart shares are computed into the member’s Total Accumulated Value (TAV).
A member shelling out 2% of his salary doubles his savings by adding the employer’s counterpart contribution. On the other hand, a member remitting 1% of his salary triples his savings because the employer share remains at 2%.
Provident Savings is fully backed by the government, and members’ contributions are subtracted from the gross income, not the net of income tax.
It also earns yearly dividends that are tax-free. However, the yearly dividend income may fluctuate due to a plethora of factors, such as the financial performance and viability of Pag-IBIG Fund in its entirety.
A member may collect his TAV after two decades of Pag-IBIG membership, or the equivalent of 240 monthly remittances.
A member may also withdraw under the following eventualities:
a. Early at 45
b. Optional at 60
c. Mandatory at 65
2. Permanent departure from the country
3. Lifetime or total physical disability
5. Separation from employment due to health reasons
7. Optional withdrawal at 10 or 15 continuous years of membership
a. A member enrolled under RA7742 may collect his TAV after 10 or 15 years.
b. A member enrolled under RA9679 may collect his TAV after 15 years
8. Other reasons permitted by the Board of Trustees
8. Pag-IBIG Mortgage Redemption Insurance
Mortgage Redemption Insurance (MRI) is an added benefit for all of the members who are involved in any Pag-IBIG Housing Loan. Also known as the Sales Redemption Insurance (SRI), the MRI guarantees full payment of the housing loan in the event that the borrower dies or experiences permanent disability if their monthly amortization is up to date at that point. A minuscule portion of the housing loan’s monthly amortization is allotted for the MRI fee.
And last but not the least, arguably the most important Pag-IBIG benefit in existence, is the…
9. Pag-IBIG Housing Loan
Pag-IBIG has two housing loan programs for its members to enjoy and benefit from.
First is the Affordable Housing Loan (AHP) for those whose monthly earnings is equal to the minimum wage.
Second is the End-User Home Financing Program (EUF), for those who are significantly earning more than the minimum wage. Here is a snapshot of the details of the AHP and the EUF:
Affordable Housing Loan (AHP)
• Maximum Loan Proceeds: PHP 750,000
• 3% yearly interest rate
End-User Home Financing Program (EUF)
• Maximum Loan Proceeds: PHP 6,000,000.00
• 5.5% yearly interest rate
If you want to read a more in-depth article on the step-by-step guide on how to apply for a Pag-IBIG Housing Loan, you can click here.
If you are thinking about which house to purchase using a Pag-IBIG Housing Loan, BRIA Homes would definitely be a great choice for you. Bria Homes is a subsidiary of GOLDEN MV Holdings, Inc., one of the largest real estate companies in the country. BRIA Homes is primed to bring quality and affordable house and lot packages and condominium units closer to ordinary Filipino families. Bria Homes Inc. has in its catalog some of the most irresistible promos of Pag-IBIG financing to its model houses, which are all quality homes at very affordable prices. Here are some Bria model houses which you can purchase through Pag IBIG Fund financing:
Elyana Rowhouse is a bungalow-type rowhouse ideal for bachelors or small families. For as low as P3,034 per month through Pag-IBIG financing, this would barely make a dent in your pocket.
Bettina Townhouse is a 2-story unit that is ideal for larger families, with parking space for small vehicles. For as low as P6,205 per month through Pag-IBIG financing, this is very affordable.
Alecza is a bungalow unit that may be a single firewall or duplex unit. For as low as P8,155 per month through Pag-IBIG financing, this is yours for the taking.
• Thalia, one of the latest Bria’s house and lot models, can also be either duplex or a single firewall. For as low as P9,327 per month through Pag-IBIG financing, you can secure this modern house of your dreams.
In the end, being informed about Pag-IBIG benefits, such as the ones mentioned above, can help you extract the full value of your contributions up to the last centavo. A Pag-IBIG Housing Loan can help you create a new start by buying your first home. You can also get an MPL as either money for investments or an additional buffer to your emergency fund. The possibilities to optimize your contributions are endless, with enough knowledge and imagination.
BRIA Homes is a subsidiary of GOLDEN MV Holdings, Inc., .one of the largest real estate companies in the country. BRIA Homes is primed to bring quality and affordable house and lot packages and condominium units closer to ordinary Filipino families. This is the goal that drives every single employee in the company, for which the ultimate fulfillment is seeing a client happily moving into BRIA’s homes.
To know more, visit their website at www.bria.com.ph, like and follow “Bria Homes, Inc.” on Facebook, Twitter, Instagram, YouTube, Pinterest, Spotify, Viber Community, Telegram Channel, Kakao Talk, LINE, and WhatsApp, or call 0939-887-9637.
Written by John Jerome Bongato