Pag-IBIG releases 22% higher socialized housing loans in first half of 2018

MANILA, Philippines — The Home Mutual Development Fund or Pag-IBIG Fund extended P4.859 billion in socialized housing loans to 12,639 low-wage earners in the first half of the year.

Based on latest Pag-IBIG data, this was 22 percent higher than the P3.788 billion disbursed the same period last year.

The state fund said socialized housing also made in up 32 percent of all the homes financed by Pag-IBIG in the first half of the year.

“The main driver of socialized housing is compliance among developers. They allot 15 percent of their development projects as socialized housing. This in turn helps low wage and minimum wage earner the underserved sector-acquire a home of their own,” HDMF chief executive officer Acmad Rizaldy Moti said.

Pag-IBIG provides socialized housing loans for houses that range from P300,000 to P450,000.

Currently, the state fund is providing socialized loans at a three percent interest rate per annum – the lowest interest rate it has ever imposed – which is 33 percent lower than the previous 4.5 percent rate, with no equity required.

HDMF subsidizes the low interest rates through its tax savings, being a tax-exempt agency as specified under Republic Act 9679.

“Socialized housing is designed especially for the low wage workers,” said Secretary Eduardo del Rosario, chairperson of the Housing and Urban Development Coordinating Council (HUDCC) and the Pag-IBIG Fund Board of Trustees.

“President Duterte directed that there should be government programs catering to this marginalized sector, hence, we have this housing program. This is the essence of BALAI Filipino (Building Adequate, Livable, Affordable and Inclusive Filipino Communities) – decent shelter for every Filipino family,” he added.