In January 2020, the Philippines recorded its first case of COVID-19. Two months later, the World Health Organization (WHO) declared a pandemic, resulting in health and economic challenges worldwide. Many Filipinos, local or abroad, were affected by its aftermath, like losing their jobs and other sources of income. Fortunately, the Philippine government introduced the Special Housing Loan Restructuring Program to help Filipinos with their financial responsibilities. Today, the government offers the Special Housing Loan Restructuring 2 Program to help Filipinos.
But what is this program all about? The Home Development Mutual Fund (HDMF) or Pag-IBIG Fund launched the Special Housing Loan Restructuring 2 (SHLR2) Program, allowing Housing Loan borrowers to renegotiate their loan terms to pay their monthly amortization. This program is the government’s effort to help Filipinos suffering financially. By adjusting the loan terms, borrowers ang installment buyers who missed monthly payments can prevent foreclosure or termination of contracts, allowing them to keep their homes.
What is the Special Housing Loan Restructuring 2 Program
The Special Housing Loan Restructuring 2 (SHLR2) is a program offered by the Pag-IBIG Fund to Housing Loan borrowers and installment buyers who were greatly affected by the economic challenges due to the pandemic. This program aims to help Filipinos ease their financial responsibilities in times of difficulty. Under this program, the payments are adjusted for Pag-IBIG Housing Loan borrowers to maintain the ownership of their property. It reduces the penalties and offers reasonable amortization, providing six (6) months of relief payment.
In 2020, Housing Loan borrowers with 12 months outstanding monthly amortizations applied to the Special Housing Loan Restructuring Program to reduce their financial burdens, allowing them to recover financially. The Special Housing Loan Restructuring Program extends the loan duration and payment of late dues. In addition, the program removes the penalties and gives borrowers the choice to renew their payments. However, Housing Loan borrowers with over 12 months outstanding balance on August 2020 cannot avail of this program.
The program is also not applicable to Pag-IBIG Housing Loans if canceled, foreclosure, or litigation. Meanwhile, approved borrowers for the Special Housing Loan Restructuring Program will get an interest rate of 6.37% per annum in three (3) years, which may change after the period. On the other hand, the restructured loan under the SHLR2 has a lower interest rate than the Regular Housing Loan Restructuring Program, which is 8% per annum.
By applying for the SHLR2 program, Housing Loan borrowers and installment buyers can extend the duration of their loans. The program also updates their accounts and reduces their monthly amortization. Once amended, their properties will not be canceled or repossessed. Since the program helps adjust payments, it gives members a good standing, allowing them to apply for other Pag-IBIG loan programs.
The overdue fees don’t apply if the Housing Loan borrower or installment buyers miss any payment. Most of all, the borrower can start paying their loan from December 2020 to March 2021, giving them enough time to recover and manage their finances. If approved for the SHLR2 program, the restructured Housing Loan is payable for up to 30 years, given the member is not over 70 years old when the chosen loan term ends.
Furthermore, members with more than one (1) Pag-IBIG Housing Loan can apply for the SHLR2 program for each account. Thus, the SHLR2 program can help lessen the financial burdens of Filipinos and ensure ownership of their house and lots.
The SHLR2 program is open to all active Pag-IBIG members who are Housing Loan borrowers with three (3) or more consecutive missed monthly payments. However, the house should not foreclosed, or the account isn’t closed. Apart from being an active Pag-IBIG member, the borrower should have at least one (1) monthly savings/contribution within six (6) months before applying to the program. The program is also open to the legal heirs of deceased borrowers and successors in interest, given the account has missed more than three (3) months of payments.
If foreclosed, the borrower can still apply for this program, given the contract is not yet canceled or closed. The program is also open to Pag-IBIG Loan members who purchase a Pag-IBIG Fund-acquired asset. Thus, those paying installments for the acquired asset can apply for the SHLR2 program.
To speed up the process, Pag-IBIG Housing Loan borrowers no longer need to submit any documents to apply for the SHLR2 program. Also, there is no application fee to avail of this program. However, the applicants can opt to pay a down payment. Meanwhile, the Housing Loan borrower should pay a total of one (1) year insurance premium for Mortgage/Sales Redemption Insurance at Non-Life Insurance 30 days after approval to enjoy continuous coverage. This insurance will help members pay their balance in Housing Loans in case of death or disaster that causes extreme damage to homes.
But before you apply for the SHLR2 program, prepare the following:
- One (1) valid government-issued ID with signature (photocopy or scanned copy)
- Selfie photo while showing your valid ID
How to apply for the Pag-IBIG Special Housing Loan Restructuring 2 Program
To apply for the Special Housing Loan Restructuring 2 Program, Pag-IBIG members can follow the steps below:
Via Virtual Pag-IBIG (Online)
- Visit the Virtual Pag-IBIG online portal – Special Housing Loan Restructuring 2 Program page through this link: https://www.pagibigfundservices.com/virtualpagibig/HLR/Restructuring.aspx.
- Prepare the following before starting:
- Photocopy or scanned copy of one (1) valid ID
- Selfie photo showing your valid ID
- Tick off the box to agree to the Terms and Conditions. Then, click the Proceed button.
- Enter your Housing Account Number (HAN).
- Type the code from the image.
- Review the details you entered and click the Validate button.
- Once approved, submit three (3) original notarized promissory notes with the Restructured Loan Agreement within thirty (30) days.
- To submit these documents, visit the nearest Pag-IBIG branch or send them via courier service.
Via Pag-IBIG Fund branch (On-Site)
Another way to apply for the SHLR2 program is by visiting the nearest Pag-IBIG Fund branch. Present your valid ID and wait for the approval of your application. Once approved, submit three (3) original notarized promissory notes with the Restructured Loan Agreement within thirty (30) days. But ensure your account is not yet canceled, repossessed, or endorsed for closure.
Overall, the Special Housing Loan Restructuring 2 Program will benefit Filipinos. Considering the effects of the pandemic, many are still struggling financially to support and maintain their needs. With this program, Pag-IBIG members having difficulties paying their monthly amortization can renegotiate the loan terms, making it easier to pay their dues. Therefore, the Special Housing Loan Restructuring 2 Program is a great initiative to help Filipinos maintain their homes despite the difficulties.