Pag-IBIG member savings hit record P80 billion last year

MANILA, Philippines — Member savings collections of the Home Development Mutual Fund, commonly known as Pag-IBIG, reached a record P80 billion last year, putting the agency on a more sound financial footing to implement its programs.

In a statement, Pag-IBIG said its members saved P79.9 billion in 2022, up 25 percent from P63.7 billion in 2021. This is the highest recorded savings for Pag-IBIG in its 42-year history.

This also allowed Pag-IBIG to surpass its savings target of P70 billion last year.

Half of the total savings came from the agency’s 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 P39.84 billion in 2022, up by 53 percent from P25.95 billion in 2021.

The growth of the MP2 program started in 2016 when collections first breached the P1-billion level.

The remaining half which is under the Pag-IBIG Regular Savings also went up six percent to P40.06 billion.

Pag-IBIG CEO Marilene Acosta said the record-high savings in 2022 showed that Pag-IBIG members continue to trust the agency with their extra resources.

“This shows their growing appreciation of the value in saving with Pag-IBIG Fund,” Acosta said.

Housing chief and Pag-IBIG Fund board of trustees chair Jose Rizalino Acuzar, for his part, noted that as collections remain strong, the agency would continue to be able to finance and maintain the low interest rates of its loan programs.

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.

Pag-IBIG first offered the subsidized rate six years ago to help more members, particularly those from the minimum-wage sector, have their homes.

It 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 has 14 million active members and has P800 billion in total assets which are expected to reach P1.5 trillion by 2028.