The proposed Bayanihan to Recover as One Act, more commonly known as Bayanihan 2, covers a 60-day moratorium on Pag-IBIG loan payments, CNN Philippines reported.
According to the agency’s Chief Executive Officer Acmad Rizaldy Moti, the program is the same as the grace period provided to eligible members for loans due within the period of enhanced community quarantine. Stipulated in the Bayanihan to Heal As One Act, it is in Section 4(a) of its Implementing Rules and Regulations.
Moti added that Pag-IBIG was able to provide a grace period for two months and a half under the Bayanihan 1. Around 4.7 million members applied for payment deferment. Aiming to bolster assistance to borrowers and payors further, they are offering the grace period under the Bayanihan 2.
Lowest Interest Rate
Back in July, Pag-IBIG launched promo rates for housing loans. The lowest interest rate offerings are available until the end of the year, as reported by the Philippine News Agency (PNA).
Members can apply for loans with a special low-interest rate of 4.985 percent per annum under a one-year repricing period and 5.375 percent per annum under a three-year repricing period. The former is a sharp decline from the 5.375 percent interest, while the latter is previously 6.375.
Borrowers can only qualify for the three-year repricing period if they have been active during the first and second anniversaries of the promo rate, as Pag-IBIG will extend it for another year.
According to Department of Human Settlements and Urban Development (DHSUD) Secretary Eduardo del Rosario, the End-User Financing Program, which will run until December 29, strives to facilitate economic activity in the residential real estate sector and ultimately contribute to the national economy.
Meanwhile, low and minimum wage earners can apply for the subsidized home loan interest rate, which is still at 3 percent per annum. This pricing under the Affordable Housing Program is Pag-IBIG’s lowest rate in its Regular Housing Loan program. Members have until the end of the year to avail.
Calling the low rates a “win-win situation,” Secretary del Rosario mentioned that the programs will not only extend help to members who are planning to buy homes, but also create more job opportunities and help in economic recovery overall.
Pag-IBIG’s New Normal
Extending further assistance to its members amid the pandemic, the home financing agency has improved its online service platform to accept applications for cash loan programs. The Virtual Pag-IBIG has allowed borrowers to avail loans without leaving the safety of their homes.
It was in June when the improved portal began accommodating online applications for multi-purpose loans (MPL) and calamity loans (CL). Two months into the program, Pag-IBIG was able to approve around P188 million worth of loan requests. The agency evaluates applications in less than two days.
Aside from loan applications, the digital platform allows members to get their membership ID (MID) number, open an MP2 savings account, and view their records. Those who wish to pay for their contributions and loans can use the online payment facility on the website. It accepts PayMaya, Visa, Mastercard, and JCB.
Since its launch in 2019, Virtual Pag-IBIG has accommodated over 2.43 million members, including overseas Filipinos from more than 200 countries.
While the agency made their services available online, their branches have reopened as the country slid into the general community quarantine. Visitors must observe health and safety protocols, particularly wearing face masks and face shields.
Help for Developers
Meanwhile, Pag-IBIG is beefing up its efforts to sustain aid for its partner-developers, enabling them to continue construction activities.
In May, Secretary del Rosario approved the additional P8 billion stimulus package for the House Construction Financing Line (HCFL), a significant increase from the initial P2 billion budget, the Philippine Information Agency (PIA) reported. Accredited Pag-IBIG Fund developers stand to benefit from the program.
The bridge financing offers 6.125 percent interest rate per annum, which may lower up to 1.5 percent or 3 percent when paid in three or six months, respectively. Partner-developers can get up to 70 percent of the total project cost.
According to Pag-IBIG Fund CEO Moti, the stimulus package can help developers avoid layoffs and sustain payments to suppliers. It will be especially beneficial for small- and medium-sized businesses.
Confident that the move can help the economy bounce back, he said that housing has a “high multiplier effect.”
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Article and Photo originally posted by Lamudi last September 8, 2020.
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