MANILA, Philippines — The Home Development Mutual Fund, commonly known as Pag-IBIG, released a record-high P77 billion in housing loans from January to August.
In a statement, Pag-IBIG said it lent P76.94 billion in home loans for its members from January to August, up six percent from the P72.71 billion a year ago.
This allowed Pag-IBIG to sustain its momentum of registering record-high releases since last year on the back of strong demand for home loans.
Pag-IBIG interest rates remain low despite the current market trend, high loan-to-appraised value ratio, long repayment period and better insurance terms.
During the eight-month period, Pag-IBIG’s total number of financed homes reached 59,840 members.
Of the total, about 12 percent or 7,450 are Pag-IBIG members from the minimum wage and low-income sectors.
These members were able to secure some P3.15 billion in socialized home loans.
Pag-IBIG CEO Marilene Acosta said the agency expects to sustain its performance for the remainder of the year.
This will be driven by Pag-IBIG’s recent decision to reduce the interest rates for its home loans amid an improved financial standing and to address the country’s housing backlog.
“With four months to go before we end the year, we are optimistic that we shall once again set a banner year in the home loan front, and thus empower more Filipinos to become homeowners,” Acosta said.
Under the Affordable Housing Program of Pag-IBIG, 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 with 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 own homes.
Currently, Pag-IBIG has 15.58 million active members.
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The article was originally published in PhilStar Global and written by Louise Maureen Simeon.
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