Pag-IBIG lowers affordable housing loan rate to 3%
Secretary Eduardo del Rosario, chairperson of the Housing and Urban Development Coordinating Council (HUDCC) and Pag-IBIG Fund Board of Trustees, said the lower interest rate is Pag-IBIG Fund’s contribution to the housing sector’s BALAI Filipino (Building Adequate, Livable, and Inclusive Filipino Communities) program based on the directive of President Duterte to provide housing opportunities to every Filipino family, regardless of their income and status in life. Boy Santos
MANILA, Philippines — Pag-IBIG Fund has lowered its rates to only three percent per annum from the previous 4.5 percent per annum under the affordable housing program (AHP). The lower rates would apply for the first five years of loans up to P450,000.
Secretary Eduardo del Rosario, chairperson of the Housing and Urban Development Coordinating Council (HUDCC) and Pag-IBIG Fund Board of Trustees, said the lower interest rate is Pag-IBIG Fund’s contribution to the housing sector’s BALAI Filipino (Building Adequate, Livable, and Inclusive Filipino Communities) program based on the directive of President Duterte to provide housing opportunities to every Filipino family, regardless of their income and status in life.
“With the lower interest rates on the AHP, monthly amortizations for loans worth P450,000 will amount to only P1,897.22 from the previous P2,280. The total monthly amortization was reduced by almost five percent also due to other reforms like lower fire and allied perils insurance premium,” Secretary del Rosario said.
With the low rates on offer, low-income and minimum-wage earners can buy their own home at about the same price as renting one.
Pag-IBIG Fund chief executive officer (CEO) Acmad Rizaldy Moti said the AHP was created especially for the unserved and underserved sectors.
“With Pag-IBIG Fund’s annual tax savings, we have enough funds to subsidize the low rates under the AHP, which is designed primarily for low-income and minimum-wage earners. These are the members earning not more than P15,000 a month in NCR, and members in the regions earning not more than P12,000. Private lenders do not usually serve home loan borrowers in these income brackets, but in Pag-IBIG Fund we welcome them and have a housing program specifically designed to help them buy their own home,” Moti said.
Pag-IBIG Fund deputy CEO for home lending operations cluster Marilene Acosta added, “We are always looking to make home ownership an achievable dream for our low-income earners. We have removed the savings requirement in our housing loans and we have cut down to half the loan application requirements from 14 documents to just seven documents.”
Pag-IBIG Fund also reduced its interest rates for one-year and three-year repricing period to 5.375 percent and 6.375 percent, respectively. These are Pag-IBIG Fund’s lowest ever interest rates under its regular housing loan program.
- Latest
- Trending
