Pag-IBIG Released Over P12B Worth of Home Loans in December 2020

Pag-IBIG Fund’s home loan releases reached P12.11 billion in December, hitting a record-high despite the economic blow of the coronavirus pandemic, as reported by Manila Standard. Compared to the amount recorded in December 2019, which hit P11.47 billion, 2020 figures registered a six percent growth.

According to the Department of Human Settlements and Urban Development Secretary Eduardo del Rosario, the takeouts in December was the highest for a single month in Pag-IBIG Fund’s history. The milestone enabled the agency to achieve another, funding the acquisition of 12,275 homes for members in December, a record-high development. 

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All in all, the agency distributed P63.75 billion worth of home loans to 63,750 members in 2020. About 11 percent of P7.1 billion was used for socialized home loans, helping 16,975 minimum and low-wage earners.

In terms of approvals, they had P84.53 billion, funding the acquisition of 80,748 properties. The P20.78 billion are pending for release, dependent on the borrowers’ submission of post-approval requirements.

Pandemic Numbers and Recovery

Pag-IBIG didn’t come unscathed from the health crisis. In March, when the enhanced community quarantine was implemented, the number of home loan releases began to decrease. In March, it slipped to P3.8 billion, further declining in April at P883 million. The agency started to see recovery in May when the quarantine protocols eased, jumping up to P1.2 billion. In June, the numbers went up further, as it reached P2.9 billion.

The numbers sustained momentum in the second half of the year. From September to December, home loan releases were almost at pre-pandemic levels. Distributing more than P6 billion to 7 billion every month, they achieved the peak in December, as it hit P12 billion.

Pag-IBIG Fund chief executive Acmad Rizaldy Moti said that the recovery in the number of home loan releases indicates increased homeownership among Filipinos, as it’s a testament to the agency’s commitment to ensure members’ safety amid the health crisis. Moti reassured members that they will continue providing reliable services in 2021.

Voluntary Savings Performance

As home loan releases in 2020 recorded milestones, Pag-IBIG’s voluntary savings program has likewise hit a record high. According to a report from CNN Philippines, the agency’s members saved a total of P13.3 billion in the voluntary savings program MP2 last year. 

The savings posted an increase of 11 percent from the P12.01 billion collected in 2019. There were over 330,000 members who invested in MP2, saving an average of P3,270 per month. 

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According to Secretary del Rosario, the funds can serve more members, providing home loans and cash loans, financial assistance that Filipinos need in the midst of the crisis.

Pag-IBIG will announce the dividend rate for 2020 within the first quarter of 2021. The highest the program recorded was in 2017 with an 8.11 percent interest rate. In 2019, the rate was 7.23 percent.

Launched in 2010, the MP2 Savings Program has a minimum savings requirement of P500 with a five-year maturity period.

Deferment of Payments

As early as November last year, Pag-IBIG announced the deferment of increase in monthly contributions, scheduled to be implemented in January 2021, Business Mirror reported. They consulted labor and employer groups about the move.

Postponing the hike to January 2022, Pag-IBIG also covered the share of employers. From the current P100, the monthly contribution will be P150 by next year. The employer’s share will likewise increase.

According to the agency, the move is in consideration of the workers and business owners who were affected by the pandemic.

It can be noted that Pag-IBIG likewise deferred the housing loan payments until March of this year, as cited in this Business Mirror report. Penalties on unpaid monthly amortizations were waived under the Special Housing Loan Restructuring Program.

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Members who applied for the program had at least four months of payment relief from the time Pag-IBIG announced it last November. The deferral came alongside lowering of payments.

To facilitate applications safely, Pag-IBIG encouraged members to fill out the form and submit documents online through Virtual Pag-IBIG. 

The online portal was launched back in 2019 before the pandemic. It has since allowed members to register for membership, apply for loans, view records, and settle dues without going to a physical branch of the office.

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Article and Photo originally posted by Lamudi last February 1, 2021.

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