What is the Meaning of Pag-IBIG – Home Development Mutual Fund

Pag-IBIG Fund, also known as the Home Development Mutual Fund, is a government-owned and controlled corporation in the Philippines. It was established on June 11, 1978, to assist Filipinos in achieving their dream of homeownership. What is the Meaning of Pag-IBIG – Home Development Mutual Fund The fund primarily provides housing loans to its members, along with additional services such as insurance and savings options.

As one of the largest housing loan providers in the Philippines, Pag-IBIG has played a significant role in enabling numerous Filipinos to realize their goal of owning a home. Many Filipino workers opt for Pag-IBIG because it offers lower interest rates and more extended payment terms compared to most banks.

To become a Pag-IBIG member as a Filipino worker, you can sign up through your employer’s human resources department or online on the Pag-IBIG website. Once you become a member, a portion of your monthly salary will be deducted as a contribution to the Pag-IBIG Fund. These contributions accumulate over time and will serve as the basis for your eligibility for a housing loan when you decide to apply for one in the future.

It’s important to note that Pag-IBIG membership offers several benefits beyond housing loans. These benefits include access to the Pag-IBIG Fund’s various programs, such as the Multi-Purpose Loan, Calamity Loan, and Provident Savings Program. These services are designed to provide financial assistance and security to Pag-IBIG members in different circumstances.

Meaning of Pag-IBIG

If you are interested in becoming a Pag-IBIG member or want to learn more about their programs, it is advisable to visit their official website or contact their customer service for the most up-to-date and accurate information.


“Pag-IBIG is a government agency aimed at assisting Filipino workers in fulfilling their lifelong aspirations. If you are currently employed, there’s a good chance that you are already a member of this government-sponsored membership program.

The Home Development Mutual Fund (HDMF), popularly known as Pag-IBIG (Pagtutulungan sa Kinabukasan, Ikaw, Bangko, Industriya at Gobyerno) Fund, is a government-controlled corporation responsible for providing Filipinos with opportunities to participate in a national savings program and obtain affordable housing financing.

Pag-IBIG was established on June 11, 1978, during the presidency of Ferdinand E. Marcos, in response to the nation’s demand for a savings program and accessible housing financing.”

What is Pag-IBIG

Pag-IBIG is an abbreviation that stands for Pagtutulungan sa Kinabukasan: Ikaw, Bangko, Industriya at Gobyerno.

Purpose of Pag-IBIG

it seems you’re referring to a program or initiative in the Philippines that aimed to encourage Filipinos to save and was managed by the National Home Mortgage Finance Company (NHMFC) in 1979.

The NHMFC is a government organization responsible for enhancing the accessibility of home loans to Filipino workers. Their role was to facilitate the process of obtaining home loans and make it easier for individuals to own their homes.

If you have any specific questions or need further information, please let me know!

About this Agency

The HDMF, or Pag-IBIG Fund, was created to address the demand for a nationwide savings program and accessible housing financing for Filipino workers. It was founded on June 11, 1978, through Presidential Decree No. 1530. President Marcos recognized that the Pag-IBIG Fund fulfilled two crucial requirements of the country and its citizens. According to the decree, the Fund was managed by two separate agencies.

The Social Security System (SSS) handled the funds of private employees, while the Government Service Insurance System (GSIS) managed the savings of government workers. These agencies were responsible for administering the respective contributions and benefits of their respective sectors.

Please note that this information is accurate as of my last knowledge update in September 2021, and there may have been some changes or updates since then.

Functions and Responsibilities

The stated objectives can be paraphrased as follows:

  1. Provide affordable housing options (low-cost and socialized house and lot packages/condominium units) for low-income Pag-IBIG members who cannot afford market housing packages, available for rent or sale.
  2. Promote competition in the housing market to improve housing packages in terms of price and quality, benefiting both Pag-IBIG Fund members and the general public.
  3. Enable Pag-IBIG Fund to fulfill its mandate by selling affordable condominium units, as well as home and lot packages, to eligible members across the Philippines.
  4. Increase participation in the Pag-IBIG Fund.
  5. Develop and sell properties acquired by the Fund.
  6. Address the housing shortage by generating demand for affordable housing options, such as condominium units and home and lot packages.
  7. Foster a sense of ownership, pride, and confidence among Fund members, who understand that the projects are funded by their savings with the organization.
  8. Promote equitable distribution of economic potential generated by housing construction, while stimulating overall economic development and stability.

 List of Pag-IBIG Programs

The MP2 Savings Program, also known as Modified Pag-IBIG 2 Savings, is a voluntary savings plan offered by the Pag-IBIG Fund in the Philippines. It is designed for active Pag-IBIG Fund Members, former Pag-IBIG Fund Members, and Pensioners who wish to save more and earn higher returns than the regular Pag-IBIG Savings Program.

To be eligible for the MP2 Savings Program, participants should have a monthly income and/or be pensioners of any age with at least 24 months of contribution to the Pag-IBIG Fund.

One of the main advantages of the MP2 Savings Program is that it offers larger dividends compared to the regular Pag-IBIG Savings Program. The dividends earned from MP2 Savings are tax-free. The calculation of dividends is based on no less than 70% of the Pag-IBIG Fund’s annual net income. The three-year average dividend rate for MP2 is 6.96 percent, which indicates the historical average return participants have received on their MP2 Savings over three years.

It’s important to note that the rates and terms of the MP2 Savings Program may vary, and it is advisable to consult the official Pag-IBIG Fund website or directly contact their customer service for the most up-to-date and accurate information.

Membership of Overseas Filipino Workers (OFW)

Since 2009, Overseas Filipino Workers (OFWs) have been covered by Pag-IBIG Fund membership. This inclusion of OFWs in the membership was implemented to provide them with various benefits and assistance. The Philippine Overseas Employment Administration (POEA) was appointed to facilitate and handle the processing of Pag-IBIG contributions for OFWs.

As Pag-IBIG Fund members, OFWs have access to a range of services and programs designed to support them financially. These services include dividend savings, short-term cash loans, and low-cost house loans. The dividend savings program allows OFWs to earn returns on their contributions, helping them grow their savings over time.

Additionally, Pag-IBIG provides short-term cash loans to OFWs, which can be beneficial during emergencies or unforeseen circumstances. These loans can help cover urgent financial needs or unexpected expenses that OFWs may encounter while working overseas.

Furthermore, Pag-IBIG offers low-cost house loans to OFWs. This program enables them to purchase or build a home in the Philippines. It provides affordable financing options with reasonable interest rates and longer repayment periods, making homeownership more attainable for OFWs and their families.

These Pag-IBIG programs are designed to assist OFWs not only during their time working overseas but also after they return to the Philippines. By offering financial support and opportunities for savings and investment, Pag-IBIG aims to contribute to the financial well-being and long-term stability of OFWs and their families.

Housing Loan

The Pag-IBIG Fund Housing Loan allows you to borrow up to P6,000,000 at a very low interest rate.

Who is eligible for these programs:

The eligibility criteria for the loan program are as follows:

  1. At least 2-year membership savings: The borrower should have contributed to the Pag-IBIG Fund for a minimum of two years.
  2. Age requirement: The borrower should be below 65 years old at the time of application and should not exceed 70 years old by the time the loan matures.
  3. Satisfactory background, credit, and job/business checks: The borrower must pass the necessary checks conducted by the Pag-IBIG Fund, including background verification, credit assessment, and assessment of their job or business stability.
  4. Legal capacity to encumber real estate: The borrower should have the legal authority to use their real estate property as collateral for the loan.
  5. No existing Pag-IBIG Short-Term Loan (STL) arrears: The borrower must not have any outstanding arrears on their Pag-IBIG Short-Term Loan at the time of applying for the new loan.
  6. No history of foreclosed, canceled, or repurchased Pag-IBIG Housing Loans: The borrower should not have experienced foreclosure, cancellation, or repurchase of any previous Pag-IBIG Housing Loans due to default.
  7. Update existing Pag-IBIG Housing Loan: If the borrower already has an existing Pag-IBIG Housing Loan as a principal buyer or co-buyer, they must ensure that their account is up to date.

Please note that this information is based on the cutoff knowledge of September 2021, and there may have been updates or changes to the eligibility criteria. It is recommended to consult the official Pag-IBIG Fund website or contact them directly for the most accurate and up-to-date information regarding their loan programs and eligibility requirements.

The Pag-IBIG Housing Loan can be used to finance any or all of the following:

It seems like you have provided a list of activities related to the purchase, construction, and improvement of residential properties. Here’s a breakdown of each point:

  1. Purchase of a completely developed residential lot or contiguous residential lots measuring no more than 1,000 square meters: This refers to the acquisition of a residential lot or multiple residential lots that are already developed and ready for construction. The total area of the lots should not exceed 1,000 square meters.
  2. Purchase of a single-family home and land, a townhouse, or a condominium unit; used or brand-new units: This involves buying a single-family home with its associated land, a townhouse, or a condominium unit. The property can be either used or brand new.
  3. A property financed by the Pag-IBIG Fund; or adjoining house and lots/townhouses/rowhouses/condo units: This encompasses the purchase of a property that is financed by the Pag-IBIG Fund, a government housing agency in the Philippines. It can also include the acquisition of adjoining properties such as houses and lots, townhouses, rowhouses, or condominium units.
  4. The construction or completion of a residential unit on a residential lot held by the borrower or a borrower’s relative: This refers to the building or finishing of a residential unit on a residential lot that is owned by the borrower or a relative of the borrower. It implies the construction or improvement of a house on an existing lot.
  5. Home enhancement and refinancing of an existing home loan, provided that the borrower has been making regular payments on the loan’s amortizations for the last six (6) months: This involves using additional funds to enhance or improve an existing residential property. It can also involve refinancing an existing home loan, but the borrower must have made regular payments on the loan’s amortizations for at least the last six months.

Please note that the context of these activities suggests they may be related to housing regulations or guidelines in a specific country or organization. It would be helpful to provide further context if you have specific questions or need more information about a particular aspect.

Short-term Loans

The Short-Term Loan (STL), also known as the Multi-Purpose Loan (MPL), offered by the Pag-IBIG Fund is designed to provide financial assistance to its members in times of emergency or urgent financial needs. With this loan, members can borrow up to 80% of their Pag-IBIG Regular Savings.

The Pag-IBIG Fund aims to process and release the loan proceeds as quickly as possible. In some cases, the loan can be completed in as fast as 2 days, provided that all the requirements are met and the application is successfully processed.

It’s important to note that the specifics of the loan, such as the interest rates, repayment terms, and eligibility criteria, may vary and it’s advisable to consult the Pag-IBIG Fund directly or visit their official website for the most accurate and up-to-date information regarding the Short-Term Loan (STL) or Multi-Purpose Loan (MPL).

Frequently Asked Questions

Here are some common questions and answers about this department:

1. Is Virtual Pag-IBIG associated with Pag-IBIG Fund?

The Virtual Pag-IBIG is a Pag-IBIG Fund online platform made to assist its members safely and conveniently. As a member, you can navigate the website and your Pag-IBIG Fund’s services using your smartphone or computer.

There is also a 24/7 chat support service called Lingkod Pag-IBIG, wherein a service officer will give answers to all your queries and concerns. So if you’re an employee, no need to go to the branch personally and sacrifice your one-day salary. If your question can be assessed online, the officer will tell you what are the steps you need to do.

2. How much can I borrow in Pag-IBIG Housing Loan?

Answer: Members can borrow up to P6,000,000. However, it will be based on the following:

  • Your actual requirement
  • The loan amount you desire
  • The loanable amount depends on your ability to repay; and Loan-to-Appraised-Value (LTV) ratio

3. Can I get my MP2 Dividends monthly?

Answer: You can receive it annually through your MP2 Dividends credited to your savings or checking account with the Land Bank of the Philippines (LBP) and Development Bank of the Philippines (DBP). MP2 Dividends will be released through a check payable to the MP2 Saver to members who choose annual dividend pay-out but do not have a Philippine bank account, particularly abroad members.

4. How to create a Virtual Pag-IBIG account?

You don’t have to be a techie to sign up for a Virtual Pag-IBIG account. It’s just like you’re signing up for an Email or a Facebook account.

Simply go to the Pag-IBIG Fund website, click the “Create Account” button, and select one of the following options to create your account. (Through your Pag-IBIG Loyalty Card Plus, Through online activation, Through Overseas Filipino Worker’s Account Creation.)

5. Does the Pag-IBIG Housing Loan have insurance?

Yes. Your Pag-IBIG Housing Loan will be protected by an insurance policy. It can be Mortgage Redemption Insurance (MRI), Sales Redemption Insurance (SRI), or Fire and Allied Perils Insurance (FAPI).

6. How do I apply for a Pag-IBIG Housing Loan?

Apply for a Pag-IBIG Housing Loan by just submitting your completed form and designated requirements to any Pag-IBIG Fund branch. You can also submit your application and requirements to the certified partner developer where you want to purchase your new property.

7. Where is my money invested by Pag-IBIG?

Pag-IBIG Fund invests at least 70% of its investible funds in housing finance. The Fund also invests in government securities, term deposits, and corporate bonds.


Pag-IBIG Fund, also known as the Home Development Mutual Fund, has indeed been recognized as a valuable resource for Filipinos. What is the Meaning of Pag-IBIG – Home Development Mutual Fund It has been instrumental in assisting ordinary employees, especially those with minimum salary rates, in realizing their dream of owning a house. The agency has consistently demonstrated its reliability, particularly during the challenges brought about by the COVID-19 pandemic in 2020 and beyond.

Pag-IBIG Fund has proven its commitment to understanding the needs of its members and stakeholders. Through various well-designed programs and initiatives, it has provided and will continue to deliver benefits to its constituents. This support is crucial in helping both the nation and individual Filipinos overcome the consequences of the ongoing pandemic.

By offering accessible housing loan programs, affordable interest rates, and flexible payment terms, the Pag-IBIG Fund has played a significant role in making homeownership more achievable for many Filipinos. Additionally, the agency has implemented measures to support borrowers who experienced financial difficulties during the pandemic, such as allowing loan payment moratoriums and providing financial assistance.

Moreover, Pag-IBIG Fund’s initiatives extend beyond housing. They also offer various programs to address the needs of their members, including provident savings, multi-purpose loans, and calamity loans. These services aim to provide financial security and assistance during emergencies or unforeseen circumstances.

Overall, Pag-IBIG Fund has consistently demonstrated its commitment to serving the Filipino people, especially in times of crisis. Through its responsive and beneficial programs, it has become a dependable ally in helping Filipinos achieve their dreams and cope with the challenges posed by the COVID-19 pandemic.

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