Pag-IBIG lends P1.26 billion for socialized housing loan

MANILA, Philippines — The Home Development Mutual Fund or Pag-IBIG has financed P1.26 billion in loans to deliver nearly 3,000 social housing units to mostly minimum wage earners in the first quarter.

Pag-IBIG said a total of 2,968 socialized homes for minimum wage and low-income members were financed during the January to March period.

Socialized home loans accounted for 14 percent of the total 21,870 housing units funded for the quarter.

In terms of value, it represented five percent of the P27.57 billion in housing credit approved.

Pag-IBIG’s Affordable Housing Program (AHP) is a special home financing program specifically designed for minimum wage and low-income members.

These are members who earn P15,000 or less a month in Metro Manila and up to P12,000 for those outside the capital.

Under the AHP, eligible borrowers have a special subsidized rate of three percent per annum for home loans of up to P580,000 for socialized subdivision projects and up to P750,000 for socialized condominium units.

This translates to a monthly amortization of as low as P2,445.30 for a socialized home loan with a term of 30 years.

Standing out as the lowest interest in the loan market, Pag-IBIG first offered the subsidized rate six years ago to help more members, particularly those from the minimum wage sector, have their homes.

Pag-IBIG managed to maintain the three percent rate steady due to the program’s tax-exempt status under the Pag-IBIG Fund Law of 2009.

Housing chief Jose Rizalino Acuzar said the administration is focusing on inclusivity in the implementation of the flagship Pambansang Pabahay para sa Pilipino Housing program of the government.

Pag-IBIG CEO Marilene Acosta said borrowers under its AHP program do not have to put out cash for equity because of its 100 percent loan-to-value ratio.