Update on the Pag-Ibig Fund

The Philippine Consulate General in Sydney has received the following updates on the Pag-IBIG Fund from Atty. Darlene Marie B. Berberabe, Chief Executive Officer, Home Development Mutual Fund:

Overseas Filipino Workers are now covered

With the implementation in January 2010 of Republic Act 9679 also known as the Home Development Mutual Fund Law of 2009 (HDMF Law of 2009), mandatory Fund coverage has been expanded to include overseas Filipino workers (OFWs).

In 2012, Pag-IBIG declared 4.17% dividend earnings, or a total amount of P9.28 billion were credited to the members’ accounts, tax free.  Members under the Modified Pag-IBIG 2, a voluntary savings program for members who wish to save more than the minimum savings earned 4.67% dividends.

The Multi-Purpose Loan (MPL) Program has been enhanced to provide immediate assistance to finance various needs such as minor home improvement or repair, tuition or educational expenses, health and wellness, livelihood and other purposes.  The interest rate under the Calamity Loan Program has been reduced from 10.75% to only 5.95% per annum providing relief to members affected by recent calamities.

Home ownership has also been made easier and more affordable for members.  The maximum loan amount has been increased from P3 million to P6 million with interest rates reduced from 11.5% to as low as 7.98% per annum.  Under the Housing Loan program for the minimum wage earners, interest rates range from 4.5% – 6.5% per annum.  Longest repayment period of up to 30 years.

E-services to include: On-line membership registration; On-line housing loan application; Housing loan payment verification and OFW members’ savings verification; Collection servicing agreements with banks and remittance compliance worldwide; On-line payment via Visa and MasterCard credit card which conveniently allows members to remit their monthly Pag-IBIG Fund savings anytime and anywhere.

Vice President and HDMF Chair Jejomar C. Binay opened the OFW Center in Makati City which is envisioned to be a one-stop shop providing all Pag-IBIG services to OFW-members.