Pag-IBIG Fund to miss P4B housing loan target for 2013

CEBU, Philippines - Despite the surge in housing loan applications, the Home Development Mutual Fund (Pag-IBIG) Visayas expects to fall short on the P4.109 billion target for housing loans this year due to glitches in the processing of some documentary requirements.

As of October this year, the agency only released a total of P2.272 billion in housing loans, which is way below the targeted amount, said Pag-IBIG Fund Visayas Vice President Victoria De la Peña.

De la Peña said the slow releasing of land titles from the Registry of Deeds also affected the agency's on-time approval rate.

She said the Registry of Deeds is currently undergoing a transition to full computerization, and the agency is still adjusting to the new system.

There are hundreds of housing loan applications currently pending in both north and south offices of Pag-IBIG Fund in Cebu, awaiting for land titles and other important requirements.

Almost half of  the total housing loan releases as of October of this year is given to members residing in Metro Cebu area.

Record shows that the Pag-IBIG Fund (Cebu North) approved a total P704.016 million, while the Cebu South office recorded a total housing loan released of P439.847 million.

This total amount covers 1,276 housing units being funded by Pag-IBIG, with housing unit prices ranging from P750 thousand to P1.25 million.

Last year, the agency also failed to achieve its target of P3.6 billion, as it only gave out a total of P3.2 billion.

She said the demand for housing loan is constantly increasing, specifically in Cebu where real estate sector is booming.

To date, there are a total of 15 residential developers accredited with Pag-IBIG Fund. Aside from the increasing supply of houses, she also noted more developers building affordable condominium units that qualify for the agency's pricing cap for financing.

Moreover, she said that demand for residential condominium from members is also increasing.

Pag-IBIG Fund housing loan interest rate is pegged at 7.3 percent per annum this year. In 2014 on the other hand, Pag-IBIG Fund will be cutting down its interest rate charge to 6.4 percent per year.

Because of this, she expects more members to avail of housing loans next year.

In a separate interview with real estate brokerage company president Anthony Leuterio, he said that the demand now, specifically in Metro Cebu area, is the availability of affordable housing unit inventories.

Leuterio, who owns one of the largest real estate brokerage companies in Cebu and the Visayas said the metropolis is suffering from shortage of economy housing supplies, while most developers are inclined to invest in middle to high end residential projects. /JOB (FREEMAN)