Pag-IBIG members save record P28 billion in 3 months

MANILA, Philippines — Member savings collections of the Home Development Mutual Fund, commonly known as Pag-IBIG, reached a record P28.75 billion in the first quarter, allowing the agency to finance the higher demand for home loans.

In a statement, Pag-IBIG said members saved P28.75 billion in January to March, up by 36 percent from P21.09 billion in the same quarter last year.

A little over half of the total or 54 percent 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 P15.56 billion as of end-March.

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

The MP2 program has higher dividends and has a five-year maturity period and a minimum savings requirement of only P500. It is also open to retirees and pensioners who are former Pag-IBIG members.

The remaining 46 percent is under the Pag-IBIG Regular Savings which reached P13.19 billion, rising by 25 percent from last year’s P10.58 billion.

Housing chief and Pag-IBIG Fund Board of Trustees chair Jose Rizalino Acuzar said the agency’s strong financial position enables it to offer low interest rates and support the financing side of the flagship housing program of the government.

Pag-IBIG CEO Marilene Acosta, for her part, said the implementation of the new mandatory monthly contribution rates would allow members to have substantial savings and access to higher cash loans.

In February, Pag-IBIG implemented the new mandatory monthly savings rates of P200 for both the employees and the employers’ share.

The increase was the first ever hike that Pag-IBIG implemented since it was established in 1986.

Currently, Pag-IBIG has 15.58 million active members.