Pag-IBIG eyes P140 billion housing loan in 2024

MANILA, Philippines — The Home Development Mutual Fund, commonly known as Pag-IBIG, is targeting to release some P140 billion in housing loans next year.

In a recent interview, Pag-IBIG CEO Marilene Acosta said Pag-IBIG aims to lend P140 billion in home loans to its members in 2024.

This is about 8.5 percent higher than the expected P129 billion in home loan releases for this year.

As of the end of the third quarter, Pag-IBIG has already disbursed P88.3 billion.

“There is a huge demand (for home loans). It’s just that there is very low supply of the socialized housing units to our minimum wage earners,” Acosta said.

Data showed that during the nine-month period, Pag-IBIG’s total number of financed homes reached 68,211 members.

Of the total, about 12 percent or some 8,216 are Pag-IBIG members from the minimum wage and low-income sectors. These members were able to secure some P3.49 billion in socialized home loans.

“We are hoping that with the 4PH program (Pambansang Pabahay Para sa Pilipino) and with the adjustment of the price ceiling for socialized housing, developers will be able to construct more units in 2024,” Acosta said.

Further, the Pag-IBIG chief is also banking on the agency’s recent decision to reduce the interest rates for its home loans amid an improved financial standing and to address the country’s housing backlog.

Acosta said there would likely be no further cuts but Pag-IBIG hopes to maintain the low interest rate.

“As long as we do not borrow funds then we can maintain and as long as we can maintain the high collection performance, we will be able to sustain the lending,” Acosta said.

Pag-IBIG remains at the forefront in home financing as it accounts for nearly 40 percent of the total home mortgages in the country.

Under its 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, have their homes.

Currently, Pag-IBIG has 15.58 million active members.