MANILA – State-run Home Development Mutual Fund (Pag-IBIG Fund) has financed a total of 5,411 socialized homes for its minimum-wage and low-income members within the first four months of this year.
Data released Wednesday showed that socialized home loans make up 18 percent of the 29,310 units financed by Pag-IBIG from January to April 2022.
In terms of amount, socialized home loans represent 7 percent or PHP2.35 billion out of the record-high PHP31.97 billion of home loans released by the agency in the same period.
Department of Human Settlements and Urban Development (DHSUD) Secretary Eduardo del Rosario, who also chairs the 11-member Pag-IBIG Fund Board of Trustees, said the socialized housing is designed intendedly for its members belonging to the minimum and low-wage earners.
"With Pag-IBIG Fund’s Affordable Housing Program, we make sure that all our members, particularly those from the low-income sector, are given the opportunity to own a home. This is the essence of the BALAI (Building Adequate, Livable, Affordable and Inclusive) Filipino communities program of the government’s housing sector towards providing decent shelter for every Filipino family,” del Rosario added.
Pag-IBIG Fund also offers an Affordable Housing Program (AHP) for its members in the National Capital Region (NCR) that are earning up to PHP15,000.
Those members that are residing outside NCR and earning up to PHP12,000 monthly can also avail of the AHP.
Under the AHP, borrowers enjoy an annual subsidized rate of 3 percent for home loans of up to PHP580,000 for socialized subdivision projects, and up to PHP750,000 for socialized condominium projects.
Pag-IBIG Fund Chief Executive Officer Acmad Rizaldy Moti cited that the AHP’s 3 percent rate remains the lowest in the market – a rate that the agency has provided for low-income members since May 2017.
Moti said the rate was offered “due to its tax-exempt status” as prescribed under Republic Act No. 9679 or the Home Development Mutual Fund (Pag-IBIG Fund) Law of 2009.
"Because of our Charter, Pag-IBIG Fund is able to provide the lowest rates for the home loans of minimum and low-wage workers. We first offered our subsidized 3 percent rate in May 2017 to help more members realize their dreams of owning a home. And, until now, that special rate still stands,” he added.
Aside from keeping its interest at a low percentage, Moti said the agency is committed to keeping the insurance premiums at a minimum amount that will allow borrowers to pay a low monthly amortization of PHP2,445.30 only for a socialized home loan of up to PHP580,000. (PNA)
