Pag-IBIG members’ savings hit P67 billion in 10 months

MANILA, Philippines — Member savings collections of the Home Development Mutual Fund or Pag-IBIG reached a record P66.66 billion in the 10 months to October this year, putting the agency on a more sound financial footing to implement its programs.

In a statement, Pag-IBIG said its members saved P66.66 billion during the period, up by 27 percent year-on-year, and the highest for any 10-month period and even for full-year figures.

Pag-IBIG effectively closes in on its target of collecting P70 billion in savings, of which 50 percent will come from its Modified Pag-IBIG 2 Savings (MP2), a voluntary program for its members.

The MP2 program continued to drive Pag-IBIG’s total savings after it also hit a record P33.72 billion during the period, jumping by 57 percent from P21.43 billion a year ago. It also surpassed the full-year 2021 MP2 savings of P25.95 billion.

Pag-IBIG CEO Marilene Acosta said the growth of the MP2 program started in 2016 when collections first breached the P1-billion level.

“With only a few weeks remaining before the year ends, we assure our members that we are doing all that we can to provide them the best return rates on every hard-earned peso they have saved with us,” Acosta said.

Housing chief and Pag-IBIG Fund board of trustees chair Jose Rizalino Acuzar, for his part, noted that with more funds, the agency remains in a strong position to finance its programs, particularly its home loans, while keeping interest rates low.

Over the next six years, Pag-IBIG intends to finance at least 708,000 housing units.

Under the Pag-IBIG’s Affordable Housing Program, eligible borrowers have a special subsidized rate of three percent per annum for home loans of up to P580,000 for socialized subdivision projects.

Standing out as the lowest interest in the loan market, Pag-IBIG first offered the subsidized rate five years ago to help more members, particularly those from the minimum-wage sector, acquire homes.

Pag-IBIG managed to maintain the three percent rate steady due to the program’s tax-exempt status under the Pag-IBIG Fund Law of 2009.

For this year, Pag-IBIG is targeting to release as much as P110 billion in home loans. As of end-September, the agency has so far released P83 billion.

Pag-IBIG has 14 million active members and has P800 billion in total assets, which is expected to reach P1.5 trillion by 2028.