Pag-IBIG home loans reach P8.3 billion

MANILA, Philippines — The Home Development Mutual Fund, commonly known as Pag-IBIG, has financed P8.28 billion in loans to deliver over 18,000 socialized houses for mostly minimum wage earners in 2022.

Pag-IBIG said a total of 18,657 socialized homes for minimum-wage and low-income members were financed for the entire 2022.

Socialized home loans accounted for 18 percent of the total 105,212 housing units funded for the year.

In terms of value, it represented seven percent of the record P117.85 billion in housing credit approved last year.

Pag-IBIG’s Affordable Housing Program (AHP) is a special home financing program specifically designed for minimum-wage and low-income members.

These are members who earn P15,000 a month in Metro Manila and P12,000 for those outside the capital.

Under the AHP, eligible borrowers have a special subsidized rate of three percent per annum for home loans of up to P580,000 for socialized subdivision projects and up to P750,000 for socialized condominium units.

This translates to a monthly amortization of as low as P2,445.30 for a socialized home loan with a term of 30 years.

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

Pag-IBIG CEO Marilene Acosta said borrowers under its AHP program do not have to put out cash for equity because of its 100 percent loan-to-value ratio.

“This is in keeping with our commitment to uplift the lives of Filipino workers, especially those from the underserved sectors, through accessible and affordable shelter financing,” Acosta said.