Pag-IBIG lends P9.7 billion for socialized housing

MANILA, Philippines — State-run Home Development Mutual Fund (Pag-IBIG) released P9.71 billion in loans for socialized housing last year, 37 percent higher than the prior year’s P7.1 billion.

Pag-IBIG said the number of socialized housing units funded by the agency increased by nearly 30 percent to 22,028 units in 2021 from 16,975 units in 2020.

Pag-IBIG CEO Acmad Rizaldy Moti said socialized housing accounted for over 23 percent of the 94,533 home units bankrolled by the agency last year. Loans for socialized housing comprised almost 10 percent of the P97.28 billion issued by Pag-IBIG to members.

Housing Secretary Eduardo del Rosario said sustaining the Affordable Housing Program (AHP) during the pandemic contributed in raising the number of socialized units financed by Pag-IBIG funds. He said the AHP provides an avenue for low-income families to own a house.

Minimum wage workers and low-income members earning less than P15,000 a month in Metro Manila or P12,000 monthly outside of the region may apply for a loan under the AHP.

Under the program, borrowers can obtain financing of up to P580,000 at a three percent subsidy rate per year, the most affordable housing debt in the market, Moti said.

“Even amid the pandemic, the AHP still offers the lowest rate in the market, which in turn keeps monthly amortization lower than the cost of rent,” he said.

Last year, Pag-IBIG marked the first time it hit the P100-billion level for loan releases.

“For years, we have been striving to break the glass ceiling of releasing home loans worth P100 billion in a year [and], in 2021, I’m glad to say that we have achieved this seemingly impossible goal. We did it by steadily growing our home releases year in and year out,” Moti said.

Savings invested in Pag-IBIG also grew by more than 32 percent to a record P63.67 billion in 2021 from P48.18 billion in 2020, even beating the pre-pandemic total of P50.38 billion in 2019.

Regular savings poured into the housing authority spiked by over eight percent to P37.71 billion, while voluntary savings through the Modified Pag-IBIG 2 almost doubled to P25.95 billion.