HOME DEVELOPMENT MUTUAL FUND

 also known as Pag-IBIG Fund was signed into law by former Pres. Gloria Macapagal
Arroyo under Republic Act No. 9679 otherwise called as the HDMF Law of 2009.
 PAGtutulungan sa Kinabukasan:
 Ikaw
 Bangko
 Industriya
 Gobyerno

A. COVERAGE

WHO ARE ELIGIBLE TO APPLY FOR MEMBERSHIP?

 Membership with the Fund may either be:

1. MANDATORY
 All employees who are or ought to be covered by the Social Security System
(SSS), provided that actual membership in the SSS shall not be a condition precedent to the
mandatory coverage in the Fund. It shall include, but are not limited to:
 A private employee, whether permanent, temporary, or provisional who is not over sixty
(60) years old;
 A household helper earning at least P1,000.00 a month. A household helper is any person
who renders domestic services exclusively to a household such as a driver, gardener,
cook, governess, and other similar occupations;
 A Filipino seafarer upon the signing of the standard contract of employment between the
seafarer and the manning agency, which together with the foreign ship owner, acts as the
employer;
 A self-employed person regardless of trade, business or occupation, with an income of at
least P1,000.00 a month and not over sixty (60) years old;
 An expatriate who is not more than sixty (60) years old and is compulsorily covered by
the Social Security System (SSS), regardless of citizenship, nature and duration of
employment, and the manner by which the compensation is paid. In the absence of an
explicit exemption from SSS coverage, the said expatriate, upon assumption of office,
shall be covered by the Fund.

An expatriate shall refer to a citizen of another country who is living and working in the
Philippines.

 All employees who are subject to mandatory coverage by the Government Service
Insurance System (GSIS), regardless of their status of appointment, including members
of the judiciary and constitutional commissions;
 Uniformed members of the Armed Forces of the Philippines, the Bureau of Fire
Protection, the Bureau of Jail Management and Penology, and the Philippine National
Police;
 Filipinos employed by foreign-based employers, whether they are deployed here or
abroad or a combination thereof.

Coballes, Emil L.
Gaspar, Michael M.
Laddaran, Pamela Kate S.
 2. VOLUNTARY
 An individual at least 18 years old but not more than 65 years old may register with the
Fund under voluntary membership.
 However, said individual shall be required to comply with the set of rules and regulations
for Pag-IBIG members including the amount of contribution and schedule of payment.
 In addition, they shall be subject to the eligibility requirements in the event of availment
of loans and other programs/benefits offered by the Fund.

The following shall be allowed to apply for voluntary membership:

 Non-working spouses who devote full time to managing the household and family
affairs, unless they also engage in another vocation or employment which is
subject to mandatory coverage, provided the employed spouse is a registered Pag-
IBIG member and consents to the Fund membership of the non-working spouse;

 Filipino employees of foreign government or international organization, or their

wholly-owned instrumentality based in the Philippines, in the absence of an
administrative agreement with the Fund;

 Employees of an employer who is granted a waiver or suspension of coverage by

the Fund under RA 9679;

 Leaders and members of religious groups;

 A member separated from employment, local or abroad, or ceased to be

selfemployed but would like to continue paying his/her personal contribution. Such
member may be a pensioner, investor, or any other individual with passive income
or allowances;

 Public officials or employees who are not covered by the GSIS such as Barangay
Officials, including Barangay Chairmen, Barangay Council Members, Chairmen of
the Barangay Sangguniang Kabataan, and Barangay Secretaries and Treasurers;

 Such other earning individuals/groups as may be determined by the Board by

rules and regulations.

WHEN DOES MEMBERSHIP WITH THE FUND BEGIN?

 Membership with the Fund becomes official only upon remittance of the first monthly
membership savings. Thus, membership begins only upon the said date as evidenced by
the Pag-IBIG Fund Receipt.

HOW MUCH SHOULD A MEMBER CONTRIBUTE?

 The membership savings (MS) rate of all members, except for non-working spouses of
Pag-IBIG members, shall be as follows:

Monthly Compensation MS Rate

Employee Employer (if any)
P1,500.00 and below 1.0% 2.0%

Coballes, Emil L.
Gaspar, Michael M.
Laddaran, Pamela Kate S.
Over P1,500.00 2.0% 2.0%

A Filipino employee working abroad and whose employer is not subject to mandatory
coverage shall contribute an amount equivalent to 2% of his/her monthly compensation. Said
employee may opt to pay the employer counterpart.

The maximum monthly compensation to be used in computing the membership savings

shall not be more than five thousand pesos (P5,000.00).

Employer shall remit two percent (2%) of the monthly compensation of the contributing
member as counterpart contribution. The employer is not entitled to deduct from the wages or
remuneration of or, otherwise, to recover from the employee the employer's contribution.

 A non-working spouse of a Pag-IBIG member shall contribute as follows:

Fifty Percent (50%) of Working Spouse’s Monthly Compensation MS Rate

P1,500 and below 1.0%
Over P1,500 2.0%

Notwithstanding the said MS rates, a member may contribute more than what is prescribed.

HOW WILL MS BE REMITTED TO THE FUND?

 Formally employed members shall contribute through salary deduction. Their employers
shall have the responsibility to remit said contributions to the Fund on a monthly basis.

 Other members may pay directly to the Fund or through any of its authorized collecting
agents. For those who want to contribute on a monthly basis, MS shall be remitted on or
before the 10th day of the following calendar month. For quarterly payments, remittance
must be made on or before the 10th day of the first month of the following quarter.

WHAT HAPPENS TO THE MEMBERSHIP OF POP MEMBERS?

 Pag-IBIG Overseas Program (POP) members shall now be mandatorily-covered under
Pag-IBIG I. They shall remit in accordance with the rates herein prescribed. They may
also opt to continue contributing for their POP membership. However, in such cases, their
MS for Pag-IBIG I shall take precedence over those for POP.

FOR HOW LONG DOES ONE REMAIN A PAG-IBIG I MEMBER?

 Membership with the Fund shall be for a term of twenty (20) years with a total of 240
monthly membership savings or upon the occurrence of any of the following grounds for
membership termination:
1. Retirement;
2. Permanent Total Disability or Insanity;
3. Termination from service by reason of health;
4. Permanent departure from the country;
5. Death; and
6. Any other reasons as may be approved for by the Board of Trustees.

Coballes, Emil L.
Gaspar, Michael M.
Laddaran, Pamela Kate S.
 B. BENEFITS

1. SHORT-TERM LOAN (STL) PROGRAMS

 MULTI-PURPOSE LOAN PROGRAM (MPL).
 This program aims to provide financial assistance to Pag-IBIG members
for house repair, minor home improvement, home enhancement, tuition
or educational expenses, health and wellness, livelihood; or other
purposes.

 CALAMITY LOAN PROGRAM.

 This program aims to provide financial assistance to Pag-IBIG member-
victims in calamity-stricken areas, as declared by the Office of the
President or the Sangguniang Bayan.

 OTHER LOAN PROVISIONS

2. PROVIDENT BENEFITS CLAIM

3. HOUSING LOAN AVAILMENT

C. ELIGIBILITY

1.) SHORT TERM LOANS

A. MULTI-PURPOSE LOAN PROGRAM (MPL).

Borrower Eligibility:

1. Has made at least twenty-four (24) membership savings (MS).

 For members who have withdrawn their MS due to membership maturity and/or
optional maturity, the reckoning date of the updated 24 MS shall be the first MS
following the month the member is qualified to withdraw his MS; and
 A member, whose MS are still short of the required number of MS, may be
allowed to apply for MPL, provided his total savings is at least equivalent to 24
MS based on the mandatory rate inclusive of employee and employer
counterpart.
2. Has at least one (1) MS for the last six (6) months prior to date of loan application;
3. If with existing Pag-IBIG Housing Loan, the account must not be in default as of date of
application; and
4. If with existing MPL and/or Calamity Loan, the account/s must not be in default as of date of
application.

LOAN AMOUNT

Coballes, Emil L.
Gaspar, Michael M.
Laddaran, Pamela Kate S.
  A qualified Pag-IBIG member shall be allowed to borrow an amount
based on the lowest of the following: desired loan amount, loan
entitlement, capacity-to-pay.

1. LOAN ENTITLEMENT
 Maximum of 80% of Total Accumulated Value (TAV).

2. CAPACITY TO PAY
 An eligible borrower’s loan shall be limited to an amount for which
statutory deductions, monthly repayment of principal and interest, and
other obligations will not render the borrower’s net take home pay to fall
below the minimum requirement as prescribed by the General
Appropriation Act (GAA) or company policy, whichever is applicable.

If the borrower has an existing Calamity Loan, the loanable amount shall be the difference
between 80% of the borrowers TAV and the outstanding balance of his Calamity Loan;
provided, it does not exceed the borrower’s loan entitlement.

INTEREST RATE
 The loan shall be charged with an interest based on the prevailing
guidelines of the program.

LOAN TERM
 A maximum period of twenty-four (24) months, with a grace period of
two (2) months.

LOAN RENEWAL
 After payment of at least six (6) monthly amortizations.
 The proceeds of the new loan shall be applied to the borrower’s
outstanding MPL obligation and the net proceeds shall then be released
to the borrower.
 In case of full payment prior to loan maturity, a borrower shall be
allowed to apply for a new loan anytime.

B. CALAMITY LOAN PROGRAM.

Borrower Eligibility

1. Has made at least twenty-four (24) membership savings (MS).

2. Has at least one (1) MS for the last six (6) months prior to date of loan application.
3. If with existing Pag-IBIG Housing Loan, the account must not be in default as of date of loan
application;
4. If with existing MPL and/or Calamity Loan, the account must not be in default as of date of
loan application; and
5. Is a resident of the area which is declared calamity-stricken.

AVAILMENT PERIOD
 Within ninety (90) days from the declaration of state of calamity.

Coballes, Emil L.
Gaspar, Michael M.
Laddaran, Pamela Kate S.
LOAN AMOUNT
 A qualified Pag-IBIG member shall be allowed to borrow an amount based on the lowest
of the following: desired loan amount, loan entitlement, capacity-to-pay.

1. LOAN ENTITLEMENT
 The loanable amount shall be 80% of the member’s Total Accumulated Value
(TAV).
2. CAPACITY TO PAY
 An eligible borrower’s loan shall be limited to an amount for which statutory
deductions, monthly repayment of principal and interest, and other obligations will
not render the borrower’s net take home pay to fall below the minimum
requirement as prescribed by the General Appropriation Act (GAA) or company
policy, whichever is applicable.

If borrower has an existing MPL, the loanable amount shall be the difference between 80% of
the borrowers TAV and the outstanding balance of his MPL.

INTEREST RATE
 The loan shall be charge interest based on the Fund’s Risk-Based Pricing
Framework for the entire duration of the loan including the grace period.

LOAN TERM
 The loan shall be amortized over a period of twenty-four (24) months with a grace
period of three (3) months.
LOAN RENEWAL
 Should another calamity occur in the same area, a borrower may renew his
calamity loan anytime. The outstanding balance of his existing loan, together with
any accrued interests, penalties and charges, shall be deducted from the proceeds
of the new loan.

C. OTHER LOAN PROVISIONS

1. The MPL and Calamity Loan shall be treated as separate and distinct from each other. Hence,
the member shall be allowed to avail of an MPL while he still has an outstanding Calamity
Loan and vice versa. In no case, however, shall the aggregate Short-Term Loan exceed 80% of
the borrower’s TAV.

2. For borrower’s with existing Calamity Loan at the time of availment of MPL or vice versa,
the outstanding loan balance of Calamity Loan shall not be deducted from the proceeds of the
MPL.

2.) PROVIDENT BENEFITS CLAIM

Borrower Eligibility:

Coballes, Emil L.
Gaspar, Michael M.
Laddaran, Pamela Kate S.
  Pag-IBIG members who are entitled to withdraw their Total Accumulated Value
(TAV) anytime upon the occurrence of any of the grounds for termination of Fund
membership as provided under RA 9679 or the HDMF Law of 2009, and its IRR.

Grounds for Membership Termination

 Membership with the Fund shall be terminated anytime upon the occurrence of any
of the following grounds:

1. Membership Maturity.
 Eligibility for membership maturity shall be based on twenty (20) years of
membership with the Fund, reckoned from the initial Pag-IBIG Fund Receipt
(PFR) date; provided, the member has remitted a total of two hundred forty (240)
monthly savings to the Fund at the time of maturity.

2. Retirement.
 A member shall be compulsorily retired under the Fund upon reaching the age of
65. The member may, however, opt to retire earlier upon the occurrence of any of
the following events, provided the member is not a housing loan borrower:
 Actual retirement from SSS, GSIS, or from government service by provision
of law;
 Retirement under a private employer’s provident/retirement plan, provided
that the member is at least forty-five (45) years of age at the time of
retirement;
 Upon reaching age sixty (60).

3. Permanent Total Disability or Insanity.

 A member shall terminate his membership with the Fund in case of permanent total
disability (PTD). PTD refers to the loss or impairment of a physical or mental
function resulting from injury or sickness, which incapacitates said member to
perform any work or engage in any business or occupation.

 The following disabilities shall be deemed total and permanent:

 Temporary total disability lasting continuously for more than 120 days;
 Complete loss of sight of both eyes;
 Loss of two limbs at/or over the ankle or wrist;
 Permanent complete paralysis of two limbs;
 Brain injury resulting in incurable imbecility or insanity; and
 Such other cases which are adjudged to be total and permanent disability by a duly
licensed physician and approved by the Fund’s Board of Trustees.

4. Termination from service by reason of health.

 A member who can no longer render service to an employer due to severe health
conditions, as certified by his doctor. Severe health conditions constitute an illness,
injury, impairment or, physical or mental condition that involves in-patient or out-
patient care or a continuing treatment by a health care provider.

5. Permanent departure from the country.

Coballes, Emil L.
Gaspar, Michael M.
Laddaran, Pamela Kate S.
  A member has been permitted by his host country to remain there indefinitely or
has permanently left the Philippines to reside in another country.

6. Death.
 Death of a member as evidenced by a Death Certificate issued by the National
Statistics Office (NSO).
7. Any other reasons as may be approved for by the Board of Trustees

OPTIONAL WITHDRAWAL
 Those who become members of the Fund after the effectivity of R.A. 9679 shall
have the option to withdraw his or her Total Accumulated Value (TAV) on the
fifteenth (15th) year of continuous membership. Provided, that said member has no
outstanding housing loan with the Fund at the time of withdrawal.

DEATH BENEFITS
 Upon death of a member, the heirs shall be entitled to a death benefit in an amount
determined by the Fund’s Board of Trustees in addition to the Total Accumulated
Value (TAV) of the member less any and all pending obligations with the Fund.

3.) HOUSING LOAN AVAILMENT

This housing loan program grants opportunities to Pag-IBIG Fund members to avail of housing
loans to finance any one or a combination of the following:

1. Purchase of a fully developed residential lot or adjoining residential lots not exceeding 1,000
square meters, which should be within a residential area;

2. Purchase of a residential house and lot, townhouse or condominium unit, inclusive of a

parking slot, which may be:

* Old or brand new;

* A property mortgaged with the Fund;
* An acquired asset of the Pag-IBIG Fund; or
* Adjoining houses and lots/ townhouse/ row houses/ condominium units.

The subdivision project where said residential units are located must have complied with all the
required facilities pursuant to BP No. 220.

3. Construction or completion of a residential unit on a residential lot owned by the borrower, or

a relative of the borrower based on accommodation of mortgage;

4. Home improvement on the house owned by the borrower, i.e. any alteration in an existing
residential unit intended by the borrower to be a permanent integral part thereof, which will
enhance its durability and material value;

Coballes, Emil L.
Gaspar, Michael M.
Laddaran, Pamela Kate S.
5. Refinancing of an existing housing loan with an institution acceptable to the Fund, provided
that, the account is updated at least one (1) year old upon application as supported by the
borrower’s official receipts or by a Statement of Account issued by the financing institution
signed by the Manager or Account Officer.

6. Combination of loan purposes, which shall be limited to the following:

* Purchase of a fully developed lot not exceeding 1,000 square meters and construction of a
residential unit thereon;
* Purchase of a residential unit, whether old or new, with home improvement;
* Refinancing of an existing mortgage with home improvement;
* Refinancing of an existing mortgage, specifically a lot loan, with construction of a residential
unit thereon.

7. Combination of loan purposes plus cost of transfer of title, which shall be limited to the
following:
* Purchase of residential unit and transfer of title in favor of the retail borrower;
* Purchase of a residential unit with home improvement, and transfer of title in favor of the
retail borrower;
* Purchase of residential lot and transfer of title in favor of the retail borrower;
* Purchase of residential lot with house construction, and transfer of title in favor of retail
borrower.
 TWO (2) MODES OF APPLYING FOR A PAG-IBIG HOUSING LOAN:

a) Developer-Assisted - the developer assists the member in his/her housing loan

application.
b) Retail - the member applies directly to the Fund.

Borrower Eligibility
 To qualify for a Pag-IBIG housing loan, a member shall satisfy the following
requirements:
1. On Pag-IBIG Membership

 Must be a member under Pag-IBIG I Membership Program for at least twenty-

four (24) months, as evidenced by the remittance of at least 24 membership
savings (MS) at the time of loan application.

A new member who wishes to apply for a housing loan shall be required to pay
in lump sum the required 24 MS. Similarly, a member with less than 24 MS
may pay his MS for the lacking months. For both cases, the lump sum payment
shall be based on MS that correspond to the loan amount applied for.

 Pag-IBIG Overseas Program (POP) MS of Overseas Filipino Workers (OFWs)

who are Pag-IBIG I members shall be considered in counting the total number
of MS for availment of housing loans.

2. Not more than sixty-five (65) years old at the date of loan application and must be
insurable; and not more than seventy (70) years old at loan maturity;
3. Has the legal capacity to acquire and encumber real property;

Coballes, Emil L.
Gaspar, Michael M.
Laddaran, Pamela Kate S.
4. Has passed satisfactory background/credit and employment/business checks of Pag-IBIG
Fund;
5. If with existing Pag-IBIG housing account, either as principal or co-borrower, said loan
must be updated.
6. Has no outstanding Pag-IBIG short-term loan in arrears at the time of loan application.
7. Had no Pag-IBIG housing account that was foreclosed, cancelled, bought back due to
default, or subjected to dacion en pago.

 BASIC REQUIREMENTS
1. Housing Loan Application (HLA)
2. Additional Requirements

Coballes, Emil L.
Gaspar, Michael M.
Laddaran, Pamela Kate S.