The Magic of MRI for Home Loan Borrowers

In my recent talk at the University of the Philippines-Diliman as part of UP Phil Delta Alpha Sorority’s Alternative Classroom Learning Experience or ACLE, I discussed about securing one’s future through frugal living and growing money through various investment vehicles.

The two other guest speakers spoke about insurance and its importance in protecting our finances, homes, and lives in the event of natural calamities and disasters.

What caught my attention the most was the sharing of Mr. Jay Castillo of Foreclosure Philippines about their experience with Ondoy back in 2009. There are a handful revelations from his talk as his was a first-hand experience as a home loan borrower who lost a home right where Ondoy struck the heaviest, Marikina City.

According to Jay, his Pag-ibig home loan insurance has helped him recover a big portion of the cost of the house after selling it. While it was expected to find it hard to look for buyers, Jay was lucky enough to find one: their neighbor.

The Importance of MRI or Mortgage Redemption Insurance

Jay mentioned that when taking a housing loan in buying a property, paying for the MRI is now being required by banks as part of the loan agreement. However, a lot of borrowers wonder why they have to pay for a considerable amount for this type of insurance. Is it really important for borrowers and future homeowners?


MRI or Mortgage Redemption Insurance is a type of insurance that gives financial protection for home loan borrowers and their family members as this helps pay for outstanding home loan balances in case of the borrower’s death or total disability.

If you are a home loan borrower and the main provider of the family (and extended family as well), then MRI is a must. You don’t want to give headaches to your loved ones when you die or become gulay by letting them pay off the remaining balance of your housing loan.

This is one of the reasons why there are a lot of foreclosed properties in the Philippines because of failing to avail this type of home loan insurance in the past. Most family members just don’t have the ability to pay for it or don’t have the knowledge about real estate legalities. And sometimes, they even have to sell the properties at lower than what the price is offered in the market.

This is why the MRI is very important to be signed up on when borrowing so that in case the borrower dies or gets disabled, the family members will be protected as the MRI will have to cover whole or in part of the unpaid housing loan balance.

So if you have plans to buy a home through a housing loan, don’t forget to ask your bank about the MRI and that you want to avail its maximum coverage especially if you are breadwinner and provider of the family.

On another note, if you already have your life insurance you can actually ask your bank if it is possible to apply it as the MRI for your home loan.

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