Pag-IBIG Fund is helping Filipino families turn their homeownership dreams into reality with a new loan program. The agency has rolled out the Home Equity Appreciation Loan (HEAL), which lets eligible members to borrow against the increased value of their properties.
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What is Pag-IBIG HEAL?
Pag-IBIG's HEAL allows eligible homeowners to borrow funds based on the equity in their homes for improvements, expansions, or other family expenses. This program helps minimize financial stress by offering low interest rates and flexible repayment terms.
What is equity in a Pag-IBIG Housing Loan?
Equity refers to the portion or value of the property that the borrower actually owns. As the market value of the home increases over time or as payments are made on the mortgage, the borrower's equity in the property also grows.
How Does Equity Grow?
Equity in a Pag-IBIG Housing Loan grows in two primary ways:
Mortgage Payments
As homeowners make regular monthly payments on their Pag-IBIG Housing Loan, the balance of their mortgage decreases. Each payment reduces the amount they owe, thereby increasing their ownership stake in the property and directly boosting their equity.
Increase in Property Value
Another way equity grows is through the appreciation of the property's value. Over time, real estate values typically increase due to factors such as location, neighborhood improvements, and market demand. This rise in property value boosts equity, even if no additional mortgage payments are made.
How to Apply for Pag-IBIG HEAL?
To qualify for Pag-IBIG HEAL, applicants must have an active Pag-IBIG Housing Loan in good standing for at least five years, with consistent monthly payments in the last 12 months. Applicants should also be active Pag-IBIG members, not older than 65 at the time of application, and must show the financial ability to repay the loan.
The loan amount available through the Pag-IBIG HEAL is based on the increased appraised value of the property and the borrower's ability to repay the loan. However, the combined total of the Pag-IBIG Housing Loan and the HEAL loan cannot exceed 60% of the property's most recent appraised value, with a maximum loanable amount of Php 6 million.
For more information or to apply, please visit any Pag-IBIG Fund branch or visit the HEAL program section on Pag-IBIG's website.
Click here for a step-by-step guide on how to apply for a Pag-IBIG Housing Loan.
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