Since the release of our latest articles on the Pag-IBIG (Pagtutulungan sa Kinabukasan: Ikaw, Bangko, Industriya at Gobyerno) Fund or the Home Development Mutual Fund (HDMF), we have received a deluge of membership inquiries and feedback about the agency from website comments and via our Facebook account.

We’ve decided to compile and address the most common misconceptions about the Pag-IBIG Fund:

On Pag-IBIG Membership after Republic Act 9679

1. My Pag-IBIG number is invalid! Do I have to register again?

If you have worked for at least one company registered under the Securities and Exchange Commission (SEC) or recalled paying a lump sum for Pag-IBIG through the Philippine Overseas Employment Administration (POEA), it is most likely that you already are a Pag-IBIG member.

You are encouraged to register online via Pag-IBIG’s online services to manage your contributions. For existing members, it only takes a phone call to update your current membership info with Pag-IBIG.

You can register as a new member or update your existing membership information. If you do not know your number, it is best that you call Pag-IBIG’s hotline number at 724-4244 to get phone assistance from a friendly agent.

For OFWs, it is helpful if you have the local contact number of the Philippine Embassy near you (you can find one in almost every country here) to retrieve your Pag-IBIG details with the Pag-IBIG Overseas Program (POP) information desk.

2. I am an OFW (overseas Filipino worker) and I don’t need a Pag-IBIG I membership since I am already a member of the Pag-IBIG Overseas Program (POP)

According to Pag-IBIG, OFWs deserve to enjoy the same opportunities local Filipinos enjoy in the country from the agency. These opportunities are the availment of short-term loans and the earning of dividends. Although the inclusion appears to be a moot point since some OFWs are already enrolled in a special savings scheme program (POP), the agency takes into the account the OFWs who did not enroll in POP or have returned to the Philippines for good without waiting for their POP membership to mature.

On Getting a Refund

3. I stopped paying my Pag-IBIG contributions under my name X years ago so I cannot continue making payments under that name.

Your old contributions will still be recognized when you decide to continue your Pag-IBIG payments. Your old contributions will also be included for claim upon your retirement and the maturity of your membership with Pag-IBIG.

4. I can get a refund of my contributions if I want to opt out of Pag-IBIG.

Pag-IBIG members can only file for Provident Benefits Claim once they have completed 240 monthly contributions and are at the retirement age of 60 to 65 years. For OFWs, the maturity of their POP memberships would be in 10, 15 and 20 years. For OFWs who have voluntarily registered in the POP before or on 2010, they can file for a claim after 5 years.

On Pag-IBIG Loans

5. I heard that first-time loan applicants will have to apply for a smaller loan amount before being granted with a higher loan in the future.

Members can avail up to 6 million pesos for their housing loans. Pag-IBIG checks the following things in an application to determine the member’s loanable amount:

  • Your monthly savings with Pag-IBIG;
  • Your gross monthly income;
  • The appraised value of the property;
  • Your actual home needs.

6. Someone told me that I have to apply for a housing loan even if I don’t need it right now, or someone will fraudulently apply under my name and use it for himself.

A big-time developer made headlines when he was arrested for allegedly securing home loans by using ghost member-borrowers and submitting fake documents. In January of this year, Pag-IBIG Fund President and Chief Executive Officer Darlene Marie Berberabe assured the public that the agency has taken steps to ensure that members will not be victimized by such scams.

Being proactive is also another way to protect your contributions from unscrupulous individuals. Pag-IBIG members can check their updated contributions and any amortization deductions online.

7. I cannot purchase a piece of land, a lot, or a condominium via a Pag-IBIG housing loan.

Because it is among the main objectives of Pag-IBIG, you actually can, provided that the seller agrees to get paid and coordinate with Pag-IBIG. The applicant must provide the land, lot, or condo title; contract to sell; and other pertinent documents necessary to apply for a Pag-IBIG housing loan.

On Fund Security

8. Pag-IBIG may no longer exist by the time I will claim my retirement benefits.

9. Pag-IBIG is run by (name of government official) / government and I do not believe the government.

The Pag-IBIG Fund was set up by law and is supported by the national government. Although the functions of the fund are the same as that of a privately-owned mutual fund, the fund ultimately serves its members. This means that unless the government collapses permanently, Pag-IBIG will continue to serve and provide every Filipino the opportunity to have a home to call his own.

On Getting a House Loan Approved

10. It’s hard to avail for a Pag-IBIG loan because of too many requirements. Why do I need to have my dream home built first before my housing loan gets approved?

Just like any other lending institution, the loan requirements and the process Pag-IBIG are set in place to ensure that the borrower-member has the capacity to pay the loan. For every loan amortization paid by the borrower-member, it opens up an opportunity for the other members who wish to avail of home loans.

Check out our Pag-IBIG explainer in 90 seconds below:

Planning to take out a mortgage for your new home? Check out other home loan tips.

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