Pagibig Financing

Pag-IBIG Fund, Housing Loans, Mortgage, Membership, Foreclosures, etc

Pag-IBIG Fund Law

Subject: OFW Loaning

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We are always delighted to receive letters from OFW Pag-IBIG Members.

A couple of days ago, we received a letter from a Pag-IBIG Member who is an Overseas Filipino Worker based in Indonesia. The subject line of the email says, “OFW Loaning.” As you can see, he was planning to apply for a Housing Loan with Pag-IBIG Fund. Why not? That’s one of the benefits afforded to every Pag-IBIG Member and you should avail that one too.

If you are an OFW, please read carefully the entire content of this article as you may gather some bits of important information that is particularly applicable to your situation.

Here’s what the letter says in part:

“I am working here in Jakarta for 3 years now making my contribution for Pag-ibig stagnant for 3 years as well. I have three questions: Is it still okay to continue Pag-ibig rather than opt for POP which is specialized for OFWs? If yes, can I pay every 6 or 12 months since I go home once to twice a year to the Philippines anyway? Apart from not giving my contributions for 3 years, can I still presently use my existing contributions which I had with my former employer to loan for housing to date?”

In the succeeding paragraphs, we try to dissect some parts of the letter to address the questions that he raised. We present here our original reply, which was really just a very short and quick. In addition, we also elaborated more on the issue for the benefit of the other website visitors, most especially the Overseas Filipinos.

Question #1 : Is it still okay to continue Pag-ibig rather than opt for POP which is specialized for OFWs?

pag-ibig housing loan philippinesAnswer to Q#1: The Pag-IBIG Overseas Program (POP) has already been stalled and replaced with the regular Pag-IBIG Membership which is sometimes referred to as Pag-IBIG I. So, if you have not been a member of POP, that’s okay. You can simply continue with your former Pag-IBIG I Membership.

More Detailed Answer: Yes it’s true that since the Pag-IBIG Law of 2009 took effect, all OFWs are already required to become members of the Pag-IBIG Fund. For those who have returned to the country and have visited the office of the POEA before going back to work again abroad experienced this already. Just to make it clear, this is Pag-IBIG I, or the regular Pag-IBIG membership.

The Pag-IBIG Overseas Program was not at all abandoned. It’s just that, Pag-IBIG is not accepting new enrolees to the program anymore. But for those who are already contributors, you can do so until that reaches its maturity period and then be ready to cash out all your contributions.

(See also: The Home Development Mutual Fund Law of 2009 )

Question #2: If yes, can I pay every 6 or 12 months since I go home once to twice a year to the Philippines anyway?

Answer to Q#2: Yes you can do that — meaning make advanced payments.

A Better Way To Do It: Have someone whom you can trust with your money pay for your contribution over the counter at the Pag-IBIG Branch of your choice on a monthly basis. Or, you may also issue a set of post dated checks.

(See also: 5 Ways To Pay The Pag-IBIG Fund.)

Question #3: Apart from not giving my contributions for 3 years, can I still presently use my existing contributions which I had with my former employer to loan for housing to date?

Answer to Q#3: Please be aware that you need to be an actively contributing member to qualify for a housing loan.

Related Answer: Your past contributions will certainly count in terms of establishing your track record with the Pag-IBIG Fund. But remember, it’s not just the contributions that will ensure your loan approval. The most important factor really is your capacity to pay.

( See also: Your Income and Your Loan Entitlement)

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“Subject: OFW Loaning” is written and by Carlos Velasco as an elaborated answer to a letter sent by an OFW Member.

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

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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 filipinoInstead 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:

  1. If you are based overseas, please visit the Philippine Consular Office or Philippine Embassy in your host country.
  2. Locally in the Philippines at the following:
    • Any Pag-IBIG Fund Branch
    • Pag-IBIG Satellite Office at the POEA
  3. 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.

See also this article: “How Your Income And Contributions Affect Your Housing Loan Entitlement”

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

( See also: Overview of Pag-IBIG Overseas Program )

5. Benefits of Pag-IBIG Membership

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

  1. Housing Loan – this is the most popular and the most attractive benefit.
  2. Short Term Loan (Multi-Purpose and Calamity Loans) – a non-collateral loan that you can use for anything.
  3. 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.