Pag-IBIG Fund grants 5,074 socialized real estate loans to low wages in the first quarter

The Pag-IBIG Fund provided socialized home loans to 5,074 minimum-wage, low-income members in the first three months of the year despite the persistent pandemic. Socialized home loans, which totaled P2.2 billion, accounted for around 25% of the total 20,712 loans financed by the agency in the first quarter of 2021. “In the aftermath of the pandemic, the affordable housing program of the Pag Fund -IBIG has become the means for minimum wage workers and other low income workers to realize their dream of home ownership, ”said Sec. Eduardo del Rosario, President of the Department of Human Settlements and Urban Development and of the Board of Directors of the Pag-IBIG Fund, composed of 11 members. “The lowest rates and the longest duration of the program allow them to buy a home within their reach. Providing affordable funding to our members is our way of adhering to President Rodrigo Duterte’s directive to government institutions to deliver programs that meet the needs of the underserved sector, especially in these difficult times, ”he added. . Amid the health crisis, the number of socialized home loans granted increased by a quarter compared to 4,045 loans made during the same period last year, while the amount released increased by 34%. Under the Affordable Housing Program, members can borrow up to P 580,000 to purchase socialized housing and land lots, or up to P 750,000 for socialized condominium apartments at a special rate of 3% per share. year. The AHP program is specially designed for members earning no more than P 15,000 per month in the National Capital Region and no more than P 12,000 per month for members outside of the NCR. The loan program also includes a 100% loan-to-value ratio, allowing borrowers to purchase homes without spending on equity. Pag-IBIG Fund CEO Acmad Rizaldy Moti said the agency has been offering the special 3% rate under the AHP since May 2017 and has maintained the subsidized rate ever since, thanks to the fund’s tax-exempt status. Pag-IBIG provided for by the law of the Republic no. 9679. “Thanks to our Charter, the Pag-IBIG Fund can afford to offer the lowest rates for minimum wage and low wage worker home loans. And, with the recent signing of the CREATE Bill by President Duterte, the Pag-IBIG Fund’s tax-exempt status has been maintained. What this means for our members in the minimum wage and low income sectors is that they can continue to benefit from these lower rates, ”said Moti. “To put it in perspective, with our affordable housing program, qualified borrowers will only pay about P2 445 per month for a home loan worth P 580,000 – which is almost equivalent to the cost of rent. This low depreciation allows more of our members to acquire property, as we recognize that the home is the safest place to live in these difficult times. We look forward to helping more low income members become homeowners in the coming months, ”he added.

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