Don't let home renovations stress you. Pag-IBIG has a new loan to help cover repair costs
Home repairs can be stressful. Whether it's constant leaks, weak structures, or just needed improvements, it can affect your life and finances. Unfortunately, disregarding these repairs will likely worsen the issue and increase the expenses. If you're looking for funds to manage these issues, a housing loan from the Home Development Mutual Fund or the Pag-IBIG Fund might be an option.
The country's national savings program has launched its new Home Equity Appreciation Loan or Pag-IBIG HEAL, which allows you to avail of another loan based on the net value of your mortgaged property with Pag-IBIG to improve your homes.
But that's not all—you can also use the loan for livelihood or additional capital for business, education expenses, health and wellness expenses, purchase of appliances and furniture or electronic gadgets, payment of utilities or credit card bills, travel and leisure, and other life goals.
Keep in mind that this loan is only offered to Pag-IBIG Housing Loan borrowers who have "maintained the good standing of their accounts by paying their monthly amortizations on time."
"Through the Pag-IBIG HEAL, existing borrowers may apply for a loan at very low interest rates and under borrower-friendly terms, payable up to 30 years," their website stated.
According to its terms, the loanable amount will be based on your desired loan amount and capacity to pay. The total balance of the existing Pag-IBIG Housing Loan and the Pag-IBIG HEAL must also not exceed 60% of the property's most recent appraised value.
Overall, the maximum total loanable amount you can borrow is P6 million.
"If the amount you wish to borrow is more than P1 million, a re-inspection will be conducted to determine the current appraised value of the mortgaged property. Properties appreciate over time and a re-appraisal may serve as a basis to increase your loan limit," Pag-IBIG said.
To apply, you must prepare requirements such as a Duly Accomplished Pag-IBIG Home Equity Appreciation Loan, Proof of Income, a valid ID, Updated Real Estate Tax Receipt, and Health Statement Forms.
You can apply online through Virtual Pag-IBIG and if you qualify, you will be asked to upload the documentary requirements to proceed with your application. Once the processing fee is paid, you will receive your notice of approval via text message and email.
