Pag-IBIG Fund grants P8.4 B loans for socialized housing

Pag-IBIG Fund released P8.36 billion for socialized housing in 2018, benefiting 21,389 borrowers who are minimum-wage and low-income earners.

“Pag-IBIG Fund released an alltime high of P 75.31 billion in home loans in 2018. P8.36 billion of this amount was for socialized housing. In terms of units, 24 percent of the 90,375 homes financed by Pag-IBIG Fund in 2018 were for low-income borrowers. Pag-IBIG Fund continues to heed the call of President Duterte to provide social benefits to more Filipinos and strengthened its position as a key mover in the BALAI (Building Adequate, Livable, Affordable and Inclusive) Filipino Communities Program of the government’s housing sector,” said Eduardo del Rosario, chairperson of the Housing and Urban Development Coordinating Council (HUDCC) and Pag-IBIG Fund Board of Trustees.

Pag-IBIG Fund chief executive officer Acmad Rizaldy Moti said Pag-IBIG’s tax-exempt status enables the agency to subsidize the low rates for socialized housing loans and improve its programs to cater to the needs of the underserved sector.

In 2017, Pag-IBIG Fund reduced the interest rate for socialized housing from 4.5 percent per annum to only 3 percent per annum for socialized housing units worth up to P450,000, which is the best rate in the socialized housing market.

And while the price of socialized housing ceiling was raised by the HUDCC to P580,000 for horizontal housing projects in 2018 to improve the quality of affordable homes, officials of Pag-IBIG Fund decided to keep the rate low. Under its Affordable Housing Program which is exclusively for minimum-wage and low-income earners, Pag-IBIG still offers 3 percent per annum for loans up to P580,000.

This means that qualified borrowers of the Affordable Housing Program will only have to pay P2,445.30 a month for the first five years of a P580,000 loan with a term of 30 years.

“Pag-IBIG Fund takes care of the housing needs of the underserved sector who are usually shunned by banks. While the low rates might be unbelievable to some, our tax-exempt status and better than expected performance in 2018, allows Pag-IBIG Fund to give subsidized low rates to our members who earn minimum-wage. As long as we keep our taxexemption, our members, especially those who are minimum wage earners, can own a home at lower costs. While others are hiking their rates, we have reduced our rates six times in recent years.