Sun.Star Cebu - - BUSINESS - KATLENE O. CACHO / Ed­i­tor @katCa­cho

In­ter­est rates for oneyear fixed term loans drop from 5.5 per­cent to 5.375 per­cent, while rates for three-year fixed-term loans are re­duced from 6.5 to 6.375 per­cent.

Start­ing to­day, the Home Mu­tual De­vel­op­ment Fund (Pag-IBIG) will redice its rates for its end-user fi­nanc­ing pro­gram.

In a mem­o­ran­dum is­sued by Pag-IBIG Chief Ex­ec­u­tive Of­fi­cer Ac­mad Rizaldy last Feb. 6, in­ter­est rates of loans for oneyear fixed term loans drop from 5.5 per­cent to 5.375 per­cent and three-year fixed-term loans from 6.5 to 6.375 per­cent.

Also, ef­fec­tive Feb. 18, mem­ber-bor­row­ers of Pag-IBIG will en­joy pay­ing lesser eq­uity af­ter the agency ad­justed the loan­able amount based on loan-to-ap­praisal value (LTV) ra­tio.

Mem­ber-bor­row­ers who used to pay 10 per­cent eq­uity of res­i­den­tial units val­ued at P1.7 mil­lion and be­low will now pay only five per­cent eq­uity for those prop­er­ties val­ued up to P1 mil­lion.

This means that Pag-IBIG will fi­nance the re­main­ing 95 per­cent.

Mem­bers will only shoul­der 10 per­cent eq­uity for those over P1 mil­lion up P1.7 mil­lion; and 15 per­cent eq­uity for those priced up to P6 mil­lion.

Rio Teves, man­ager for Pag­IBIG Visayas-Busi­ness De­vel­op­ment, yes­ter­day said these ad­just­ments will make own­ing houses fi­nanced through Pag-IBIG more af­ford­able and en­cour­age de­vel­op­ers to be­come ac­cred­ited part­ners of the agency.

To date, Pag-ibig Visayas has about 102 part­ner de­vel­op­ers, of which 15 were ac­cred­ited last year.

Teves said this will also raise the num­ber of Pag-IBIG mem­bers who will avail them­selves of hous­ing loans.

“These ad­just­ments will make us more com­pet­i­tive with the banks,” said Teves.

Pag-IBIG Visayas ex­ceeded its home loan tar­get last year by 22 per­cent. It re­leased P9.337 bil­lion

These ad­just­ments will make us more com­pet­i­tive with the banks.

RIO TEVES Pag-IBIG Visayas Busi­ness De­vel­op­ment Man­ager

in home loans ver­sus its tar­get of P7.628 bil­lion.

Teves said the high home loan re­lease can be at­trib­uted to de­vel­op­ers high in­ter­est to part­ner with Pag-IBIG.

Pag-IBIG recorded its big­gest home loan take­out and high­est in­come last year.

Pag-IBIG re­leased P65.1 bil­lion in home loans in 2017, the high­est hous­ing loan take­out in its 37year his­tory.

The agency said this is the first time they breached the P60-bil­lion mark and ben­e­fited about 80,964 Pag-IBIG mem­bers.

Last year, Pag-IBIG also recorded an all-time high gross in­come of P43.33 bil­lion and a net in­come of P30.27 bil­lion in net in­come in 2017, the high­est net in­come it recorded and its first time to hit the P30-bil­lion mark.

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