TUCP: More workers buying their own homes

MANILA, Philippines - Despite the global financial crisis and the massive layoffs in the country, more workers are still buying their own homes.

The Trade Union Congress of the Philippines (TUCP) yesterday reported a sharp increase in the number of workers who are seeking loans to buy their house and lot.

TUCP deputy secretary-general Alex Aguilar, who also serves as Pag-Ibig board member, said the financial institution released P2.6 billion more housing loans this year.

“From P7.02 billion in first quarter of 2008, Pag-Ibig granted a total of P9.6 billion housing loans during the same period this year,” Aguilar disclosed.

Contrary to projections, Aguilar said the crisis did not hinder Pag-Ibig members, particularly workers from having homes of their own.

Aguilar attributed the growth in the number of workers availing socialized housing with Pag-Ibig’s decision to lower interest rates.

Last year, the Pag-Ibig Fund Board of Trustees adopted a resolution reducing the interest rates of loan packages from nine percent to six percent for loans up to P300,000.

Interest rates for loans over P300,000 to P500,000 were lowered from 10 percent to seven percent while rates for loans of over P500,000 to P2 million went down from 12 percent to 11.5 percent.

During the Labor Day celebration last Friday, the government announced the further lowering of interest rates for loans over P1 million from 10.5 percent to 9.5 percent.

“Pag-Ibig’s decision to further lower interest rates will make housing loans affordable for workers and their families,” Aguilar said.

He said the lowering of housing loan rates is a big help for workers, most of whom spent 15 percent of their income on housing rentals.

TUCP then urged workers, including minimum wage earners to take advantage of the new interest rates and secure new homes.

The trade union also called on displaced workers to immediately avail of Pag-Ibig’s special short-term salary loans payable in three years.

TUCP, the country’s largest labor group, has long been pushing for the lowering of interest rates on housing loans to enable workers, particularly minimum wage earners to have their own homes.