Membership

Pag-IBIG Fund Membership Question and Answer

Recently, we’ve been bombarded with questions about Pag-IBIG Fund Membership from our website visitors. These questions came from formerly active Pag-IBIG members, from Overseas Filipinos who wanted to join the program, and from people who were never sure if they were once members of the Pag-IBIG Fund or not. Well try to address each type here in the form of Question and Answer.

It is our hope that all future questions related to Pag-IBIG Fund membership will be put here in one place. So should you find something along this topic that were not yet addressed, please feel free to use the Contact Form or drop your questions from the comment box below on this page.

Please take note that many of the questions that were posted by the visitors have already been addressed in the previous articles. We’re not sure if they were just unable to find it or they don’t know how to use the Google Powered Search Box included at the bottom part of this website. So in this regard, some of our responses will make references on previous article where a particular topic is best explained.

Q-1: How can I become a member of the Pag-IBIG Fund?

There are basically two-type of membership to the Pag-IBIG Fund. One is mandatory and the other is voluntary.

For those who are locally employed in the Philippines, their respective employers should be able to assist them on their membership registration.

For voluntary membership, like the freelancers, self-employed professionals, and small business operators, please refer to the article about Voluntary Membership To Pag-IBIG Fund.

Note: OFW’s are now required to become members of the Pag-IBIG Fund. It used to be optional for them to become members of the Pag-IBIG.

Q-2: It’s been a long time since I left the Philippines to work overseas. I can’t remember anymore if I was a member of the Pag-IBIG Fund or not. How will I know?

Your case is quite understandable. Many Overseas Filipinos are also having that kind of problem, especially those who wanted to avail of a housing loan from Pag-IBIG for whatever reason they may have.

The best approach to this problem is to have a representative inquire it at the Pag-IBIG Branch where you used to be working here in the Philippines.

If, however, you are very sure that you have never been employed here in the country, there is a very good chance that you have never been a member of the Pag-IBIG Fund. In such as case, it is better to ask yourself if membership to the Pag-IBIG Fund is even necessary for you. Please be aware that there are other alternative housing loans available other than through Pag-IBIG Housing Loan.

Q-3: I remember I was contributing to the Pag-IBIG Fund when I was still employed in the Philippines. But since become and OFW, I stopped contributing. How can I re-activate my membership to the Pag-IBIG Fund?

The re-activation part is quite easy. All you have to do is continue paying your membership contributions!

But before you do that, it is best if you can proceed to the Pag-IBIG Office and request a copy of your past contributions.

Q-4: What is my Pag-IBIG ID Number?

Knowing your Pag-IBIG ID Number is one of the most important things you can do. IF you don’t have it yet, or for some reasons you forgot, please proceed to the Pag-IBIG Branch where your contributions are being remitted to and ask for a copy of your Pag-IBIG ID Number.

Pag-IBIG Financing Notes:

This is an on-going discussion page for all queries related to Pag-IBIG Fund membership.
If you have a question about Membership, and about membership to the Fund only, please use either the contact Form or the comment box below

So stay connected with us (we are on Facebook) for more Q and A about Pag-IBIG Fund Membership.

Top 5 Things Every OFW Should Know About The New Pag-IBIG Law of 2009

by Pag-IBIG Financing Admin

With the introduction of the Republic Act 9679, otherwise known as the Home Development Mutual Fund Law of 2009 or simply Pag-IBIG Fund Law of 2009, a number of changes have been implemented to the existing rules of the Pag-IBIG Fund.

This article touches those affecting the Overseas Filipino Workers and those things that are most important to them.

1. Mandatory Membership

In the past, membership to the Pag-IBIG Fund by OFW and migrant Filipinos is only voluntary under the Pag-IBIG Overseas Program. But that’s not the case any more since the introduction of the Pag-IBIG Fund Law of 2009, which took effect last January 2010. All Overseas Filipino Workers (OFWs) and Filipino Seafarers are already required to become members of the Pag-IBIG Fund. Those who have been to the Office of the Philippine Overseas Employment Agency will tell you that they were made to pay for Pag-IBIG Fund Membership there. A lot of OFWs are not aware of this, but you who are reading this article should not be surprised any more.

(Please be concerned with your fellow OFW friends and share this article to them.)

2. Membership Application

overseas filipino Instead of catching yourself unprepared for this thing at the POEA Office, it’s best if you are the one to enroll yourself to become a member of the Pag-IBIG Fund. To do this, please visit any of the following offices:

If you are based overseas, please visit the Philippine Consular Office or Philippine Embassy in your host country.
Locally in the Philippines at the following:
- Any Pag-IBIG Fund Branch
- Pag-IBIG Satellite Office at the POEA
For all OFW concerns, don’t forget this office:
Pag-IBIG Fund International Operations Group
6th Floor, Justine Bldg.,
Gil Puyat Avenue, Makati City

3. Contribution Rate

When it comes to the amount of contribution, Pag-IBIG doesn’t distinguish anymore between a locally based Pag-IBIG Member and that of an OFW Member. They are all under the Regular Pag-IBIG Membership likewise known as the Pag-IBIG I Membership. In other words, the contribution is only P 200 per month. And since there is no employer counter-part for OFW’s, you have to shoulder it all by yourself.

Take note that you may be asked to upgrade your contribution once you are approved a housing loan.

4. About The POP Membership

Some of you may have been a member of the Pag-IBIG Overseas Program (POP) already. Please bear in mind that POP is entirely different from Pag-IBIG I. While POP is optional for OFWs, Pag-IBIG I membership is mandatory since 2010 (refer to #1 above). Since the two programs are separate, your contributions to POP will not be merged with your Pag-IBIG I membership.

If you have been contributing for the POP Program, it would be to your advantage if you continue with it until it reaches maturity period where you are become entitled to withdraw your funds with its TAV.

Take note also that for other POP members, like the migrant Filipinos who are not OFWs, the membership to the Pag-IBIG I is only voluntary

5. Benefits of Pag-IBIG Membership

Basically, there are three benefits that all Pag-IBIG Members are entitled to.

Housing Loan – this is the most popular and the most attractive benefit.
Short Term Loan (Multi-Purpose and Calamity Loans) – a non-collateral loan that you can use for anything.
Provident Savings – Pag-IBIG Fund’s Saving Program for its members.

For a detailed explanation of these benefits, please refer to this article: “Benefits of Becoming A Pag-IBIG Fund Member”.

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“Top 5 Things Every OFW Should Know About The New Pag-IBIG Law of 2009” is written by Carlos Velasco.

Citizenship, Land Ownership and Pag-IBIG Fund Membership

by Pag-IBIG Financing Admin

A good number of our website visitors came from Filipinos based overseas – both OFWs and immigrants. And occasionally, we also have dual-citizenship holders and former Filipinos who are certainly interested in the Pag-IBIG Fund Program. The messages and inquiries that we received from them are as varied as the different cultures they are currently in.

There is one particular question that struck our attention and we want to cover it hear simply because it many of our visitors can relate to this one and we want them to be informed about this once and for all.

The question came from R. Nunez and he said in part…

“I am a dual citizen but wish to retire early in the Philippines(Filipino/American passport holder).Can I be qualified to become a ‘Pagibig Fund’ member?”

And we replied with this:

“Please don’t make it complicated on your part. You can always use a Mortgage Loan from a Bank in your situation. That way, there is no more membership requirements and other complicated matters that go with it.”

“And yes, you are certainly allowed to own a piece of land under the Laws of the Philippines.”

(For the complete series of replies, refer to this link. )

Again, we are citing that particular inquiry because we want to elaborate further and add a few more important information for Dual Citizenship holders just like Mr Nunez and other former Filipinos as well.

Citizenship and Membership To The Pag-IBIG Fund

The right answer to Mr Nunez question is this: Yes, he is qualified to be a member of the Pag-IBIG Fund under the Pag-IBIG Overseas Program. As a matter of fact, The Pag-IBIG Fund stated that “Membership under the Pag-IBIG Overseas Program (POP) shall be open to all Overseas Filipino Workers (OFWs) with valid visas or employment contracts. Likewise, it shall be open to Filipino immigrants and to Filipinos naturalized in other countries.”

IMPORTANT UPDATE:
The Home Development Mutual Fund (or simply Pag-IBIG Fund) has changed the rule requiring OFW’s to become members of the Pag-IBIG Fund. In other words, the Pag-IBIG Overseas Program is only optional for the OFW’s, because they are now required to become regular members of the Pag-IBIG I.

For more information on the Pag-IBIG Overseas Program, please refer to the following links:

Citizenship and Land Ownership

dual passport -- Philippines and England It is a well known fact that land ownership in the Philippines is granted only to Filipino Citizens and Philippine Corporations with at least 60% interest by Filipinos.

Foreign Nationals are definitely not allowed to own. Most of them simply put the Land title in the name of a Filipino whom they can trust such as the spouse. Or it could be that they are on a long term lease-contract with the land owner.

As for the former Filipinos who are already naturalized in other countries, the Law of the Philippines still allows them to own a piece of land, but with a few limitations.

If this describes you, take note of the following restrictions.

Land must be used for residential or business purposes only.
Limitation on Residential land:
1. maximum of 1,000 sq meters of urban land
2. or one (1) hectare of rural land is allowed
Limitation of Land intended for business use:
1. maximum of 5,000 sq meters of urban land
2. or three (3) hectares of rural land
You can only get either urban land or rural land, but not both.
A maximum of two (2) lots not exceeding the maximum limit in total combined area is allowed. Lots must be located in different cities or municipalities.

As for the Dual Citizenship holders (one citizenship being a Filipino) the Law of the Philippines still allows you to own land in your name just like any Filipino National.

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Citizenship, Land Ownership and Pag-IBIG Fund Membership is written by Carlos Velasco.

How Your Income And Contributions Affect Your Housing Loan Entitlement

by Pag-IBIG Financing Admin

In case you are wondering how much loan amount you are entitled, this article intends to address that.

By now, you should already know that the maximum housing loan amount Pag-IBIG can possibly grant to a member is P 3,000,000 while the smallest amount is only P 100,000. And the corresponding interest rate is actually shown at the Right Panel of this website.

Basically, there are two very important factors that affect the loan amount you will be entitled to:

The amount of your contribution
Your Net Disposable Income

Naturally, if you want to avail of a bigger loan amount, you need to increase your contribution and demonstrate that your Net Income is also large enough to cover the monthly amortizations.

These things are easier to understand with the following Tables.

Loan Entitlement Based On Pag-IBIG Contribution

So looking at the table, if you need, for example, to get a loan amounting to P 2,000,000 your contribution should be P 950 / month. Now PhP 950 /month is easier for most Pag-IBIG Members. Quite frankly, there is no problem in that area.

Special Note to OFWs / POP Members: Since you are contributing in US Dollars, the table essentially means to need to contribute the US Dollar equivalent of that amount in Philippine Peso. As you know, there is a constant swinging of values between these two different currencies so there is also a corresponding adjustment.

Loan Entitlement Based On The Capacity To Pay

Take note of this part and this is very important.

According to the Pag-IBIG Fund Primer on Housing Loan, “A member’s loan entitlement shall be limited to an amount for which the monthly repayment on principal and interest shall not exceed 40% of the member’s net disposable income…”

In other words, the monthly amortization should be less than 40% of your net disposable income.

The following Table should guide you.

For example, if you are looking to get a PhP 1,000,000 loan and plan to pay it in 10 years (monthly amortization is P 12, 398.57 at 8.5% interest per annum), your net disposable income should be PhP 30,996.43 or higher (the higher the better).

So to avoid having problems paying for the property, that means you have to work backwards: Determine your net disposable income first, then buy a property based on the amount of loan that you can comfortably pay.

Let’s see if you really understand the Table shown above.

Question: You are planning to get a Pag-IBIG Housing Loan amounting to P 2,000,000 and pay it in 10 years. How much should your monthly income be?

Answer: Your monthly income should be P 67,467.50 or higher. And your monthly contribution should be P 950.

Additional Notes on Borrower’s Eligibility For Housing Loan

To be eligible for the housing loan, a member should:

Be a member for at least 24 months and has remitted at least 24 monthly contributions.
Be 65 years old or younger at the time of loan application.
Not be more than 70 years old at the maturity date of the loan.
Have no outstanding housing loan from Pag-IBIG.
Have no Multi-Purpose Loan in arrears at the time of housing loan application.
Have no Pag-IBIG Housing Loan that was foreclosed, cancelled, bough back or subjected to dacion en pago.

Related Articles To Check:

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This article on Income, Contributions and Loan Entitlement is written by Carlos Velasco.

Online Concerns: Housing Loan Applications, Membership Status And Contributions Inquiry, Etc.

by Pag-IBIG Financing Admin

Most visitors coming to this website are Overseas Filipino Workers based from different places abroad. And many of them are asking about the online facilities of the Pag-IBIG Fund (the official website is at http://www.pagibigfund.gov.ph) so they can do some transactions anywhere they are comfortable. Some of the most common questions we encounter are listed below.

I want to become a member of the Pag-IBIG Fund. Can I do it online? Do you have an online form that I can fill up and send back to you?
Can I apply for A Housing Loan Online?
May I request for my Pag-IBIG ID Number? Please send it through email.
How will I know about my past contributions?
Can I send my payments (contributions/amortizations) online?

Of course these are valid concerns as legitimate members of the Pag-IBIG Fund.

In this article, we’ll address each of these questions.

#1. Membership Application: I want to become a member of the Pag-IBIG Fund. Can I do it online? Do you have an online form that I can fill up and send back to you?

Yes, this is possible. Simply download Member’s Data Form. Print two copies and send back to the Pag-IBIG Fund.

While doing that is very convenient, the good ole way of actually handing it to the office is still best way to do it. That way, you get someone to give you an acknowledgment that your form has been received.

The most ideal way of doing it should be to just fill-up and online form — as opposed to downloading it — and waiting for a verification via email. Unfortunately, this one doesn’t exist yet. So, let’s make the best use of this one.

Your Money In Pag-IBIG Fund

by Pag-IBIG Financing Admin

This article is a must read for every Pag-IBIG Member whether active or inactive. If you are a member, please read carefully. If you know someone who is a member, please share it.

How Your Money Enters The Pag-IBIG Fund

The moment you become a member of the Pag-IBIG Fund, that’s the first time your money enters into the Fund. For some, there is really no choice. All employees who are covered by SSS and GSIS are mandated and required to also contribute to the Pag-IBIG Fund. Others are voluntarily contributing to the Fund.

Is It A Mutual Fund?

First things first. Pag-IBIG Fund is just a fancy term for Home Development Mutual Fund. That’s a handy term to help you remember it easily. Unfortunately, it also blinds you to a lot of other things about the company and what it does with your money.

Next, let’s talk about Mutual Fund. Let’s call on Investopedia.com to assist us on the definition of the term Mutual Fund:

“A mutual fund is nothing more than a collection of stocks and/or bonds. You can think of a mutual fund as a company that brings together a group of people and invests their money in stocks, bonds, and other securities. Each investor owns shares, which represent a portion of the holdings of the fund.”

That definition says a lot of things. If not for the last statement, the Pag-IBIG Fund could have qualified for a Mutual Fund Company. In other words, the usual definition of a “Mutual Fund” doesn’t apply here.

Pag-IBIG Fund and Cooperative Setup — It’s easier to think of Pag-IBIG Fund as a cooperative rather than a Mutual Fund.

Here are some important points to bear in mind:

In the Philippines, a Mutual Fund is an investment company, owned by its shareholders who are also the investors in the fund. Pag-IBIG Fund is organized, owned and controlled by the government. Members of the Pag-IBIG Fund are not shareholders.
A Mutual Fund investors can withdraw (redeem shares) anytime. Pag-IBIG Members has to wait for a maturity date to claim their savings money.
Anyone can invest in a Mutual Fund — even foreigners. Pag-IBIG Fund is limited to members only.
You can’t loan against your investment money in a Mutual Fund. With Pag-IBIG, you can take out a Personal Loan or a Housing Loan.

( To learn more about Mutual Funds and Investments in general, please head over to this article on PeraTree.com. )

It’s easier if you think of Pag-IBIG Fund as a cooperative, rather than a mutual fund. That’s the best analogy I can come up with.

Pag-IBIG Money As Savings: How Your Money Earns in Pag-IBIG Fund

Pag-IBIG says that you are saving money when you are contributing to the Pag-IBIG Fund.

In a way, yes. You and your employer have combined to save in the Fund. But, unlike a regular bank savings that you have been accustomed to, your money has no fixed rate of return. That money is being invested and its earnings vary and depend a lot on so many factors. At the end of the year, your savings will earn an annual dividend which is also automatically credited to your total savings. The total savings is also referred to as Total Accumulated Value (TAV), and it includes your contributions, your employer’s contributions plus all the dividends it earns.

Provident Claims: How To Withdraw You Money

Now comes the itchy part: How do you withdraw your savings?

(A lot of our OFW visitors are asking how to withdraw their contributions in Pag-IBIG since they are no longer active. We hope this article helps.)

You may be surprised, but your savings with Pag-IBIG is not as liquid as your regular bank deposit. In other words, to withdraw it, you have to wait… 20 years or so, that’s the maturity period of your money.

Here are the instances where you are allowed to withdraw your money in Pag-IBIG.

The member has been contributing for 20 years and after having made a total of 240 contributions.
Upon retirement (early retirement at age 45; optional retirement at age 60; mandatory retirement at age 65)
Permanent departure from the country
Total Physical disability or Insanity
Termination from service for health reasons
Death of the member (of course, your beneficiaries will be the one to claim it)
For members who have registered under RA 7742 and RA 9679, you may withdraw your money after 10 years or 15 years of continuous membership.

Armed with the information above, I’d like to ask a few questions about your money and savings in relation to your Pag-IBIG Fund Membership.

Is it wise to contribute more money to your membership fund with Pag-IBIG?
What are the pros and cons of putting more money in excess of the minimum requirement by the Pag-IBIG Fund?
Should you approach Pag-IBIG Fund as a reliable source of retirement fund?

That’s something for you to think.