Pag-IBIG: Housing Loan Considered Fully Paid If Borrower Dies, Suffer Disability

The Home Mutual Development Fund, which is popularly known as Pag-Ibig Fund, said Thursday, December 15, that a housing loan will be declared fully paid if a borrower-member will die or suffer from a total permanent disability.

According to Fermin Sta. Teresa Jr., Vice President of Pag-Ibig Home Lending Operations Visayas/Mindanao Group, this initiative is in line with the agency’s improved insurance for housing loan borrowers under the Mortgage Redemption Insurance (MRI).

Speaking during the Kapihan sa PIA (Philippine Information Agency) to coincide with Pag-Ibig’s 36th anniversary, Sta. Teresa said that MRI is an insurance against risk of death and incapacity.

Aside from full payment declaration, the family of the deceased member will get P20,000 in burial benefits.

Furthermore, if a housing loan borrower will fall terminally ill, such as with cancer, he/she will get P500,000 in amortization support.

This means that if the borrower has a balance of P1 million, he/she will pay P500,000 only.

Ma. Victoria dela Peña, Pag-Ibig Vice President for Members Services Branch Operations-Visayas/Mindanao Group, said that the premium of 40 centavos per P1,000 loan has been reduced to 23 centavos per P1,000.

“What is good is that the new insurer pays an additional death benefit of P20,000, which was not previously provided,” said dela Peña.

Moreover, she said that of the amount of premium paid by borrowers, they will receive an “experience refund” equivalent to 20 percent of the insurer’s profit that will be refunded to the housing loan borrowers.

“The claims processing is within 24 hours only,” dela Peña added.

On housing loans in Cebu Housing Hub, dela Peña reported that there were 2,770 borrowers and a total loan value of P2.5 billion for 2015; and 3,791 borrowers as of November 2016, with a loan value of P3.8 billion.

For the entire Visayas, there were 4,829 borrowers in 2015, with total loans of P4.2 billion; and 6,858 as of November 2016, with P5.8 billion.

Dela Peña said that on the take-out corporate-wide accomplishments as of November 2016, loan value reached P50.093-billion for 65,750 housing units.

In addition, Dela Peña and Sta. Teresa also discussed other housing loan updates, including the increase in loan amount of housing availment from P3 million to P6 million; and the reduction of interest rate for end-user financing, which is now at 5.5 percent per year.

Sta. Teresa said that they are encouraging private employers to construct village-type housing programs for their employees and to avail themselves of the institutional loan program.

He also added that he noticed an increase in the number of accredited developers from 15 in 2014 to 63 as of November 2016.

Pag-Ibig also has enhanced appraisal for “green features that provide premium pricing that covers landscaped waste minimization in accordance with green technology, use of solar or energy efficient lighting system, and eco-sanitation like wastewater recycling and treatment system.”

Source: SunStar Cebu