Pag-IBIG releases record P126-B in home loans

The Home Development Mutual Fund, commonly known as Pag-IBIG, has released a record P126 billion in housing loans last year for nearly 97,000 members.

In a statement, Pag-IBIG said home loan inched up by seven percent to hit P126.04 billion in 2023 from P117.85 billion in 2022.

This is Pag-IBIG’s highest home loan release since the fund was established.

However, Pag-IBIG’s total number of financed homes declined by eight percent to 96,848 from the record 105,212 in 2022.

Of the total housing units financed last year, 11,257 or 12 percent were socialized housing units, which are now owned by members from the minimum wage and low-income sectors.

Pag-IBIG CEO Marilene Acosta said the agency has maintained its low interest rates despite the strong demand for home loans and amid prevailing high market rates. “We expect to maintain the affordability of our home loans, especially since we have more funds to address the increasing demand for home financing from our members with the implementation of our new monthly savings rates this February,” Acosta said. For 2024, Acosta earlier said PagIBIG targets to release some P140 billion in housing loans, up 11 percent.

Pag-IBIG remains at the forefront in home financing as it accounts for nearly 40 percent of the total home mortgages in the country.

Under the Pag-IBIG’s affordable housing program, eligible borrowers have a special subsidized rate of three percent per annum for home loans of up to P580,000 for socialized subdivision projects.

Standing out as the lowest interest in the loan market, Pag-IBIG first offered the subsidized rate five years ago to help more members, particularly those from the minimum-wage sector, have their homes.

Currently, Pag-IBIG has 15.58 million active members.