Pag-IBIG gets DHSUD go-signal for promo rates on housing loans

MANILA, Philippines — The Department of Human Settlements and Urban Development (DHSUD) has approved the Home Development Mutual Fund or Pag-IBIG Fund’s promotional rates for its housing loans for the remainder of the year.

In a board meeting held via video conference last Thursday, Human Settlements Secretary Eduardo Del Rosario, who also serves as the chairman of the Board of Pag-IBIG, gave the go signal on the agency’s proposed promotional rates for its members who will apply for housing loans from July to December 2020 under its End-User Financing Program.

“By offering these special rates to our members, we are spurring economic activity in the housing industry, which has a ripple effect on the national economy,” Del Rosario said in a press statement.

Under the approved proposal, Pag-IBIG Fund will be offering a low interest rate of 4.985 percent per annum under a one-year repricing period and 5.375 percent per annum under a three-year repricing period.

“These are its lowest-ever rates under its Regular Housing Loan program, and are available to members getting new home loans until the end of 2020 only,” the DHSUD said.

The promotional rates would reduce the agencies current interest rates pegged at 5.375 percent per annum for the one-year repricing and 6.375 percent per annum for the three-year repricing period.

“This is a win-win situation because our members get to take advantage of these home loan rates, while their purchase of their homes will help generate more jobs to get our economy back on track,” Del Rosario said.

Meanwhile, interest rates for Pag-IBIG Fund’s “Affordable Housing Program”, available for low and minimum-wage earners, remain at its lowest of 3 percent per annum, the DHSUD said.

Pag-IBIG Fund chief executive officer Acmad Rizaldy Moti explained that the new interest rate for the three-year repricing period will only apply if the borrower’s account has been deemed as “performing” during the first and second anniversary for the promotional rate that will be extended by another year.

Moti said the non-performing loans during the first or second anniversary of the promotional rate will be reverted to risk-based pricing.

“Our ever-improving quality of portfolio has allowed us to keep the rates low under our Risk-Based Pricing Model. But this time, we are offering something special,” Moti said.

“In consideration of the impact of the pandemic on the livelihood of our members, we reduced our home loan rates by as much 100 basis points for the next six months because we want to help members who are thinking of buying a home to take advantage of our lower-than-lowest rates. Even amid the pandemic, now is the best time to buy a home with a Pag-IBIG housing loan,” he added.