Pag-IBIG launches new loan program for home improvement, expansion

MANILA, Philippines — The Home Development Mutual Fund (HDMF) or Pag-IBIG Fund launched the Pag-IBIG Home Equity Appreciation Loan (Pag-IBIG HEAL) primarily aimed at providing housing loan borrowers affordable and convenient access to ready cash for home improvement, expansion, or other family expenses.

Pag-IBIG Fund Chief Executive Officer Marilene C. Acosta said this new loan program would empower borrowers to leverage the growing equity in their homes.

Under the program, Acosta said qualified members with existing Pag-IBIG housing loans in good standing would be allowed to tap into the increased value of their homes.

With additional cash at affordable rates and easy repayment terms, members with existing housing loans can conveniently fund home improvements or address other important family expenses without financial stress, she said.

"Pag-IBIG HEAL offers our borrowers practical and affordable access to additional cash. As their homes grow in value, Pag-IBIG HEAL lets them tap into this appreciation to make improvements, expansions, or even address other financial needs without causing strain on their finances," she added.

The agency said those who could qualify to avail of the program must have an existing Pag-IBIG housing loan maintained in good standing for at least five years, with monthly payments consistently updated during the 12 months prior to application.

It said further that borrowers must also be active Pag-IBIG Fund members, not older than 65 at the time of application and have the financial capacity to repay the additional loan.

The maximum loan amount through Pag-IBIG HEAL depends primarily on the increased appraised value of the borrower's property and their ability to repay.

The combined balance of the existing Pag-IBIG Housing Loan and the Pag-IBIG HEAL should not exceed 60 percent of the property's latest appraised value, with a maximum total loanable amount of P6-million.

For more information and to apply for Pag-IBIG HEAL, you may visit any Pag-IBIG Fund branch or click this link:

https://www.pagibigfund.gov.ph/ItsTimetoHEAL/.