Pag-IBIG housing loans grow to P45 billion

MANILA, Philippines — The Home Development Mutual Fund, commonly known as Pag-IBIG, has released P45 billion in housing loans as of end-May.

During the Laging Handa briefing yesterday, Pag-IBIG department manager for public media affairs Jack Jacinto said the agency has lent P45 billion in home loans for its members.

This is roughly an 11-percent increase from the P40.41 billion in housing loans released in the same period last year.

“This is part of our efforts to help DHSUD (Department of Human Settlements and Urban Development) and the directive of President Marcos to solve the housing backlog in the country,” Jacinto said.

Pag-IBIG interest rates remain low despite the current market trend, high loan-to-appraised value ratio, long repayment period and better insurance terms.

Under the Marcos administration, Pag-IBIG intends to finance at least 708,000 housing units.

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, acquire their homes.

Further, member savings collections of Pag-IBIG reached P37 billion as of end-May, allowing the agency to finance the higher demand for home loans.

This is the combination of the agency’s Modified Pag-IBIG 2 Savings (MP2), a voluntary program for its members, as well as the Pag-IBIG Regular Savings.

Last year, the savings program earned an annual return rate of 7.03 percent, the highest since the pandemic.

Pag-IBIG has 15.4 million active members and has over P800 billion in total assets which is expected to reach P1.5 trillion by 2028.

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The article was originally published in Phil Star Global and written by Louise Maureen Simeon