1. Salary Deductions
The loan shall be paid in equal monthly amortizations in such amounts as may fully cover the principal and interest, as well as insurance premiums, over the loan period, and shall be made, whenever feasible, through salary deduction.
- The borrower shall execute the Authority to Deduct the monthly loan amortization for his salary, and shall secure the conforme of his employer for the purpose.
- Pag-IBIG Fund and the employer shall enter into a Collection Agreement stipulating, among others, that the deduction for the employee’s Pag-IBIG housing loan shall have priority over other obligations of the same nature after all statutory deductions have been effected.
- In case of salary deduction, an equivalent of one (1) month amortization shall be deducted from the loan proceeds upon takeout.
2. Postdated Checks, Over the Counter or Auto Debit Arrangement with a Bank
The monthly amortizations may also be paid to Pag-IBIG Fund through any of the following modes:
- Post-dated checks (PDCs) issued by the borrower, co-borrower or relatives up to the first civil degree of affinity or consanguinity, initially to cover the first twelve (12) monthly amortizations. PDCs must be dated on the date that coincides with the date of loan takeout (DV/Check Date):
- Collection Servicing Agreement (CSA) with accredited developers;
- Over-the-counter;
- Auto debit arrangement with banks; or
- Any other collection system which the Fund may implement in the future.
3. May change Mode of Payment
The borrower may change his mode of payment subject to the approval of the Billing and Collection Department or the Loans and Contribution Management and Recovery Division (LCMRD). However, in case a borrower altered the same from Over-the Counter (OTC) to Salary Deduction (SD) or from Post Dated Checks (PDCs) to SD, he shall be required to pay a one (1) month advance amortization. Regardless of said modification, the borrowers original due date shall be retained.
- The first monthly amortization shall commence on the month immediately following loan takeout (DV/Check Date). The monthly payments shall be paid on the date that coincides with the date of loan takeout (DV/Check Date).
For staggered releases, the payment of the payment of the first loan amortization shall commence on the month following the DV/ Check Date of the final loan release, and every month thereafter.
- Should the due date fall on a non-working day, the monthly payments shall be paid on the first working day after the due date.
- Staggered payments for an amortization period shall be allowed provided the amortization is paid in full on or before the due date
- In case of tacked loans where a co-borrower is released from the original loan obligation, the principal borrower may request for the adjustment of his monthly amortization based on the outstanding balance of the loan, interest rate at the time of re-computation and the remaining term of the loan.
- The borrower who fails to pay the full monthly amortization and/or the other loan obligations when due shall pay a penalty of 1/20 of 1% of the amount due for every day of delay.
- The upgraded membership contributions for loans exceeding Five Hundred Thousand Pesos (P500,000.00), net of the mandatory contributions (except in the case of individual payors / self-employed who shall be shouldering both the EE and ER share) shall be paid together with the borrower’s monthly amortization and shall be considered as contributions for the applicable month.
- A borrower’s monthly payments shall thus be applied according to the following order of priority:
- Mandatory and/or Upgraded membership contributions, if applicable
- Penalties
- Insurance premiums
- Interest, and
- Principal.
Source:
Read more:
Pag ibig Circular No. 310 – Amended Guidelines on the pag ibig Fund end-User Home Financing Program
Pag ibig Circular No. 312 – Guidelines on the Pag ibig Fund Affordable Housing Program
