Ladan, Danica

Mijares, Vernie Marie

Pugay, Merlwin Ren
Torrico, John Kenneth
Young, Aprille Gale

Home Development Mutual Fund (HDMF)

Pagtutulungan sa kinabukasan: Ikaw, Bangko, Industriya, at Gobyerno

More popularly known as the Pag-IBIG Fund

Established on June 11, 1978 by virtue of Presidential Decree
No. 1530
Philippine governments answer to the need for a national
savings program and an affordable shelter financing for the
low - and mid-income Filipino workers.

Home Development Mutual Fund (HDMF)

Pagtutulungan sa kinabukasan: Ikaw, Bangko, Industriya, at Gobyerno

The countrys largest housing loan provider with more than 13.8
million members with total assets of Php 350 billion
Republic Act No. 9679 (Home Development Mutual Fund Law of 2009)
* made membership mandatory for all SSS and GSIS members
* grants the HDMF exemption from tax payments
* authorizes the Board of Trustees to set the contribution rates

Home Development Mutual Fund (HDMF)

Pagtutulungan sa kinabukasan: Ikaw, Bangko, Industriya, at Gobyerno

Offers three (3) benefits and programs:

* Housing Loan
* Multi Purpose Loan (MPL)
* Calamity Loan

Housing Loan
What are the loan purposes?
Purchase of a fully developed residential lot or adjoining lots not
exceeding 1,000 square meters
Purchase of a residential house and lot, townhouse, or condominium
unit
Construction or completion of a residential unit on a lot owned by the
member
Two (2) modes of applying for a PAG-IBIG housing loan :
Developer-Assisted
Retail

Housing Loan
Who are eligible to apply for a PAG-IBIG housing loan?

Must have remitted 24 monthly contributions under Pag-IBIG

Membership Program
Not more than 65 years old
Has no outstanding Pag-IBIG housing loan
Has no outstanding multi-purpose loan in arrears
Had no Pag-IBIG housing loan that was foreclosed, cancelled,
bought back due to default or subjected to Dacion en Pago

How long is the repayment term?

The maximum repayment period for a Pag-IBIG loan is thirty (30) years.

Housing Loan
Two (2) types of housing loans offered by PAG-IBIG:

Affordable Housing Program

For minimum wage earners or those
whose gross monthly income does not
exceed P17,500
Loan up to P750,000
A maximum of three (3) qualified PagIBIG members may be tacked into a
single loan provided they are related
For the first ten years of the loan:
Loan Amount
Interest rates
Up to P450,000
4.5%
Over P450,000 to P750,000
6.5%

End-User Financing Program

Loan up to P6 Million
Interest rate depends on the
fixing period chosen by the
borrower.

Multi Purpose Loan (MPL) Program

Used for:
House Repair
Minor Home Improvement
Home Enhancement
Tuition/Educational Expenses

Health and Wellness

Livelihood
Other purposes

Open for any PAG-IBIG member who:

Has made at least 24 monthly mandatory savings (MS)
Has 5 MS for the last 6 months prior to date of loan application
If with an existing Housing Loan and/or MPL and/or Calamity Loan, the
account/s must not be in default prior to loan application

Multi Purpose Loan (MPL) Program

How much can one borrow?
The borrowers loan value shall be a percentage of his Total Accumulated Value (TAV), to wit:

How much is the interest rate?

10.75% per annum
What is the repayment period?
The loan shall be repaid over a maximum of 24 months, with a grace period of 2 months.

Multi Purpose Loan (MPL) Program

When can a member renew his MPL?
A qualified borrower may renew his MPL after making 6 monthly
amortizations. The proceeds of the new loan shall be net of the outstanding
balance of the existing loan.
When will the loan be in default?
Any willful representation made by the borrower in any of the documents
executed in relation to his/her MPL application
Failure of the borrower to pay any 3 consecutive monthly amortizations
Failure of the borrower to pay any 3 consecutive mandatory savings
Violation by the borrower of any of the policies, rules, regulations and
guideline of PAG-IBIG fund

Calamity Loan
Eligibility:
At least 24 monthly savings
At least 5 monthly savings for the last 6 months
Resides in an area declared as under state of calamity
Up to how much one can loan?
Up to 80% of Total Accumulated Value (TAV)
The interest rate for calamity loan is at 5.95% per annum
Until when can one avail calamity loan?
Within 90 days from the day of declaration of state of calamity

Calamity Loan

Payment Period
Amortized over 24 months with a grace period of 3 months
Members should start paying on the fourth month following the date of his
DV/Check date
Can one still avail calamity loan even if he has an outstanding MPL/Calamity
loan?
Yes, but in no case shall the aggregate of the loans exceed 80% of TAV
If the member still has an outstanding calamity loan of 1,000 and avail a new
calamity loan for 3,000, the proceeds to the member will only be 2,000.

Membership
Mandatory Membership
-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.
-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.

Membership
Voluntary Membership
-An individual at least 18 years old but not more than 65 years old
-they shall be subject to the eligibility requirements in the event of availment of loans
and other programs/benefits offered by the Fund.

Who shall apply for voluntary membership?

-non working spouses
-filipino employees of foreign government or international organization
-employees of an employer granted a suspension of RA 9679
-leaders and members of religious groups
- a member separated from employment
-public officials not covered by GSIS
-such other earning individuals/groups as may be determined by the Board by rules and
regulations

Membership
Pag-IBIG Fund guarantees the refund of member's total accumulated savings (TAV), which
consists of the member's accumulated contributions, the employer counterpart
contributions, if any, and the dividend earnings credited to the member's account upon
occurrence of any of the following grounds for withdrawal.
Membership Maturity (either 5, 10, 15, or 20-year member; apparently something you chose when
signing-up, though I don't remember any such thing. Probably means I'm stuck with 20)
Retirement (Age 65, Age 60, or 45 and also retired with SSS/GSIS)
Permanent and Total Disability or Insanity
Separation from the service due to health reason
Permanent departure from the country
Death (given to your heirs)