Pag-IBIG Fund offers home equity loans for improvements, other needs

State-run Pag-IBIG Fund is offering a home equity appreciation loan program to its housing loan borrowers, providing access to funds for home improvement, expansion, or other family expenses.

The Pag-IBIG Home Equity Appreciation Loan (HEAL) allows borrowers with existing Pag-IBIG housing loans in good standing to tap into the increased value of their homes, the agency said in a statement.

The program provides additional cash at what it described as affordable rates and with easy repayment terms, enabling members to fund home improvements or address other financial needs.

Pag-IBIG Fund CEO Marilene Acosta said the HEAL program allows borrowers to leverage the growing equity in their properties.

"Pag-IBIG HEAL offers our borrowers practical and affordable access to additional cash," Acosta said. "As their homes grow in value, Pag-IBIG HEAL lets them tap into this appreciation to make improvements, expansions, or even address other financial needs without causing strain on their finances."

To be eligible, borrowers must have an existing Pag-IBIG housing loan in good standing for at least five years, with monthly payments consistently updated during the 12 months prior to application.

Borrowers should also be active Pag-IBIG Fund members not older than 65 at the time of application and have the financial capacity to repay the additional loan.

The maximum loan amount depends primarily on the increased appraised value of the borrower’s property and their ability to repay.

The combined balance of the existing Pag-IBIG Housing Loan and the Pag-IBIG HEAL should not exceed 60% of the property’s latest appraised value, with a maximum total loanable amount of P6 million.