Home > Benefits and Programs > Retail > "Gabay Pabahay" Program

Pursuant to the pronouncements of Pres. Gloria Macapagal-Arroyo in celebration of the Labor Day last 1 May 2007, the following guidelines are hereby adopted:

A. OBJECTIVE

1. To reward housing loan borrowers who are paying promptly, i.e. those who pay on or before their respective due dates as indicated in the monthly billing statement.
2. To improve collection efficiency by encouraging existing borrowers to continue paying on time.
3. To align interest rates of existing housing loan accounts with that of Pag-IBIG Fund Circular No. 219.

B. ELIGIBILITY

1. Accounts that are updated as of date of effectivity of the program, including those under Pag-IBIG Fund Circular Nos. 127, 127-B, 143 and 143-A, shall be eligible for the discount; provided, that the updated accounts were taken out prior to Pag-IBIG Fund Circular No. 219 and have interest rates higher than 6%.
2. Borrowers with accounts that are 1-6 months in arrears as of date of effectivity of the program shall be given until 31 December 2007 to fully update their respective accounts. However, this does not preclude the Fund from instituting cancellation of CTS, filing for extra-judicial foreclosure, etc. against the borrower.Once updated, the borrower shall be entitled to the discount on the interest for the applicable month that the account was updated.

C. MANNER OF COMPUTATION

1. A borrower who shall pay on or before the due date as indicated in the monthly billing statement shall be entitled to a maximum discount of 2% on the interest; provided, that the resulting interest rate shall not fall below the rates provided for in Pag-IBIG Fund Circular No. 219.
2. Partial payments for any amortization/installment period shall not be subject to discount.
3. In case of accelerated payments, the following policy shall apply:

   3.1 For payments covering more than one payment period and are sufficient to cover the monthly amortizations/payments, said payments shall be entitled to the discount if payments are made on the date of effectivity of these guidelines and onwards.
   
   3.2 For payments covering more than one payment period and are sufficient to cover the monthly amortizations/payments, the amount equivalent to the discount for the applicable period shall be applied to the principal if payments are made prior to the date of effectivity of these guidelines.
   
   3.3 For pre-termination of loan (i.e. full payment prior to the end of term of the loan) made on the date of effectivity of these guidelines and onwards shall likewise be entitled to a discount on the interest as of date of full payment.

4. The discount granted to borrowers paying the original amortization/installment shall be applied to the principal.
   For payments made through post-dated checks (PDCs) and are based on the original amortization/installment, the amount equivalent to the discount shall likewise be applied to the principal. PDCs must be dated on the due date, i.e. date that coincides with the takeout date/final loan release, e.g. 17th.
5. For payments made beyond the due date, the original interest rate shall be used to compute the interest due on his/her outstanding balance. Nevertheless, the borrower shall still be entitled to the discount for the following month, provided he/she shall pay on or before due date.
6. During the period of implementation of the program, the borrower's discount privilege for succeeding amortization/installment periods shall be permanently revoked once he/she fails to pay his/her monthly payments for three consecutive months.

ILLUSTRATIVE CASES

I. Appropriate Interest Rates

Considerations:

• Maximum discount of 2%
• Not lower than Pag-IBIG Fund Cir. No. 219

II. Treatment of Discount

1. Two-Interest Rate Structure

Given: Interest Rate is 12%/16% for P500,000 loan
Takeout Date: August 26, 2002

2. Single-Interest Rate Structure

Given: Interest Rate is 16% for P375,000 loan
Takeout Date: May 5, 1998