How to Apply Pag-IBIG Home Equity Appreciation Loan (HEAL)

Apart from Housing Loans, the Home Development Mutual Fund (HDMF), or Pag-IBIG, offers various programs to its members, which they can use in case of calamity, hospital bills, or other immediate financial needs. To apply for a loan using your mortgaged property as collateral, you can also do so through the Pag-IBIG Home Equity Appreciation Loan (HEAL). But what is the program all about? Read on as we share what Pag-IBIG Home Equity Appreciation Loan (HEAL) is and how to apply for it.

Although the primary purpose of this program is for home improvement, eligible borrowers can apply for the Pag-IBIG Home Equity Appreciation Loan (HEAL) to fund their needs, such as business capital, education, health, and travel. Members can also use the Pag-IBIG HEAL loan proceeds to purchase appliances, furniture, and gadgets. Furthermore, the loanable amount will depend on the borrower’s desired amount and the net value of the mortgaged property. Thus, Pag-IBIG members are encouraged to avail of this program to cover essential expenses.

apply for Pag-IBIG Home Equity Appreciation Loan (HEAL)

What is Pag-IBIG Home Equity Appreciation Loan

The Pag-IBIG Home Equity Appreciation Loan (HEAL) enables eligible members to borrow an amount based on their home net value with very low-interest rates. With Pag-IBIG HEAL, members can apply for another loan based on the net value of their mortgaged property. You can use the loan proceeds for various purposes, such as home improvement, livelihood capital, education expenses, purchase of a car, and other life goals.

On the other hand, the Pag-IBIG HEAL is only accessible to Housing Loan borrowers with good standing in their accounts by paying their monthly amortizations regularly and on time. Aside from low interest rates, existing borrowers can avail of a loan with flexible terms, payable for up to 30 years.

Loan Purpose

Under the Pag-IBIG HEAL, eligible members can borrow from the agency for the following loan purposes:

  • Home Improvement
  • Livelihood or additional capital for business
  • Education Expenses
  • Health and wellness expenses
  • Purchase of furniture, appliances, and electronic gadgets
  • Payment of utilities or credit card bills
  • Travel and leisure
  • Other life goals

Collaterals & Limitations

  • The mortgaged property under the borrower’s existing Pag-IBIG Housing Loan will be the collateral for the Pag-IBIG HEAL account.
  • A Pag-IBIG Heal account has a maximum of three (3) members. It means the members are severally and jointly liable with the principal borrower of the existing Pag-IBIG Housing Loan and HEAL accounts.
  • The additional co-borrower/s must be:
  1. Related within the second (2nd) civil degree of consanguinity/affinity
  2. Passed the eligibility requirements (except for Item No. 3.5 of Pag-IBIG Fund Circular No. 446)
  3. Consent to the Pag-IBIG HEAL application
  • The existing Pag-IBIG Housing Loan account co-borrower who doesn’t consent to the Pag-IBIG HEAL application won’t have an obligation in the housing. However, the said co-borrower should continue the payment of the corresponding share in the existing Pag-IBIG Housing Loan account.
  • The existing Pag-IBIG Housing Loan and the HEAL accounts are considered separate and different from each other, with no prejudice on the cross-default provision.
  • The loanable amount depends on which is the lowest of the following:
  1. Desired loan amount
  2. Borrower’s capacity to pay
  3. The latest Loan-to-Value ratio computed on:
  • 60% of the latest appraised value of the borrower’s mortgaged property with Pag-IBIG Fund less the total outstanding balance of the existing Pag-IBIG Housing Loan/s
  1. Borrower maximum aggregate loan value based on:
  • P6,000,000 less the total outstanding balance of the borrower’s existing Pag-IBIG Housing Loan/s

The amount you can borrow through the Pag-IBIG HEAL depends on the lowest amounts above. Also, Pag-IBIG Fund will perform a technical inspection in any/both of the following cases:

  • The loanable amount exceeds P1,000,000
  • Pag-IBIG Fund will conduct a re-inspection to identify the mortgaged property’s current appraised value if you want to borrow more than P1,000,000.

Nonetheless, a credit investigation applies if the borrower doesn’t want a re-appraisal or the loanable amount is below P1,000.


Before you apply for Pag-IBIG Home Equity Appreciation Loan (HEAL), check if you meet the following qualifications:

  • Must be an active Pag-IBIG member
  • Must have at least one (1) monthly membership savings within the last six (6) months
  • Not over 65 years old at the date of application
  • Not over 70 years old at loan maturity
  • Has the legal capacity to purchase and encumber the real property whenever appropriate
  • Has an existing Pag-IBIG Housing Loan, approved or withdrawn for at least five (5) years at the date of application
  • With existing housing loan or installment account/s paid regularly and on schedule within the last twelve (12) months promptly before the date of application (applicable to principal borrower/buyer or loan’s co-borrower)
  • Passed Pag-IBIG Fund’s satisfactory credit/background and employment or business
  • Without outstanding on Pag-IBIG Short-Term Loan (STL) at the time of application. If STL has outstanding dues, update it before applying for Pag-IBIG HEAL.


If qualified for the program, secure the following documentary requirements for the Pag-IBIG Heal application:

  • Duly Accomplished Pag-IBIG Home Equity Appreciation Loan for principal borrower/s (HQP-HLF-858)_V01. Click here to download.
  • Duly Accomplished Pag-IBIG Home Equity Appreciation Loan for co-borrower/s (HQP-HLF-868)_V01. Click here to download.
  • Any proof of income for the following:
  1. For locally employed
  • Original copy of Certificate of Employment and Compensation (CEC) – duly signed by the employer’s authorized signatory
  • One (1) photocopy of the latest Income Tax Return (ITR) with attached BIR Form No. 2316 – duly acknowledged by the BIR or employer’s authorized representative.
  • Certified true copy of one (1) month payslip within the last three (3) months – with name and signature of the employer’s authorized signatory
  1. For self-employed
  • ITR, Audited Financial Statements, and Official Receipt of tax payment from bank supported with DTI Registration and Mayor’s Permit/Business Permit
  • Commission Vouchers reflecting the issuer’s name and contact details (for the last 12 months)
  • Bank Statements or passbook for the past 12 months (if income is from foreign remittances, pensions, etc.)
  • Copy of Lease Contract and Tax Declaration (if income is from rental payments)
  • Certified True Copy of Transport Franchise issued by an appropriate government agency (LGU for tricycles, LTFRB for other PUVs)
  • Certificate of Engagement – issued by the owner of the business
  • Other documents verifying the source of income
  1. For Overseas Filipino Workers (OFWs)
  2. Employment Contract:
  • Employment Contract between employee and employer
  • POEA Standard Contract
  1. Certificate of Employment and Compensation:
  • CEC written on the Employer/Company’s official letterhead
  • CEC signed by the employer (for household staff and similarly situated employees) supported by a photocopy of the employer’s ID or passport
  1. Income Tax Return filed with Host Country/Government

Note: English translation is required if documents are in foreign languages.

  • One (1) valid government-issued ID
  • Updated Real Estate Tax Receipt/s for the quarter promptly before the date of application
  • Health Statement Forms
  • Conformity Form for New/Subsequent Housing Availment (HLF409_V03) for co-borrowers who want to share their consent to the new HEAL application. Click here to download.

How to apply for Pag-IBIG Home Equity Appreciation Loan

Follow the steps below to apply for Pag-IBIG Home Equity Appreciation Loan (HEAL):

  1. Visit the Virtual Pag-IBIG website and click the option “Apply for and Manage Loans.”
  2. Tap the button “Apply for a Home Equity Appreciation Loan.”
  3. Before you click the Proceed button, prepare the following:
  • Duly accomplished Home Equity Appreciation Loan (HEAL) Application with 1×1 inch ID photo
  • Proof of income based on employment status
  • Updated Real Estate Tax Receipt
  • Health Statement Forms
  • Conformity on New/Subsequent Housing Availment (if applicable)
  • Photocopy or scanned copy of one (1) valid ID with signature
  • Selfie photo showing your valid ID
  1. On the dropdown menu, select the Loan Type.
  2. Enter your Pag-IBIG Membership ID (MID) No and Housing Account Number (HAN).
  3. Review the details you entered and click the Verify button.
  4. If qualified, upload your documentary requirements to continue. Applicants may also process their HEAL application at the nearest Pag-IBIG Fund branch.
  5. Pay the processing fee via Virtual Pag-IBIG or accredited payment centers.
  6. If application requirements are complete, Pag-IBIG will notify you via SMS or email once your Notice of Approval (NOA) and loan documents are available. You can access them in your Virtual Pag-IBIG account.
  7. Download and print your post-approval requirements.
  8. Then, sign and submit them at the nearest Pag-IBIG Fund branch or via a courier service. Also, don’t forget to sign and notarize your Notice of Approval.

How to Pay Pag-IBIG Home Equity Appreciation Loan

If you wish to apply for a Pag-IBIG HEAL account, its due date is the same as your existing Pag-IBIG Housing Loan. You can pay your Pag-IBIG HEAL online through Virtual Pag-IBIG and accredited payment facilities or collecting partners. Moreover, you can pay your Pag-IBIG HEAL through the following:

  • Accredited Collection Partners
  • Auto-debit arrangement with participating banks
  • Post-dated checks
  • Salary deduction via Employer Collection Servicing Agreement (CSA)
  • Other collection systems accredited by the Pag-IBIG Fund

Video: Pag-IBIG HEAL Loan Guide

Check out this video which showcases details if you can cash out your Pag-IBIG HEAL Loan:


The Pag-IBIG Home Equity Appreciation Loan (HEAL) is beneficial to achieving your life goals. It allows eligible Pag-IBIG members with existing Housing Loans to borrow an amount based on the net value of their mortgaged property, which will also serve as their collateral. The Pag-IBIG HEAL also offers low-interest rates and flexible terms, where borrowers can pay the loanable amount for up to 30 years. Therefore, the Pag-IBIG HEAL makes it possible for its members to realize their goals, whether for home improvement, buying a car, or traveling out of the country.

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