Pag-IBIG falls 10% short of 2024 home loans target

MANILA, Philippines — The Home Development Mutual Fund, commonly known as Pag-IBIG, is banking on the government’s flagship housing project and low-cost program to help boost loan releases after falling short of its target by 10 percent last year.

Pag-IBIG CEO Marilene Acosta said the Pambansang Pabahay Para sa Pilipino Housing (4PH) Program and the construction of more socialized housing units will help the agency reach its P157-billion home loan releases target for 2025.

Last year, Pag-IBIG fell short by almost 10 percent in its home loans target of P143 billion, releasing only P130 billion.

For 2025, the housing agency aims to lend P156.86 billion in home loans to its members, up by 21 percent. This is equivalent to 111,648 housing units.

“For this year, the 4PH (will drive releases). Last year, we only took out 24 units because it really takes time to secure the permits and do the construction,” Acosta told The STAR.

“We’re hoping that it will shoot up this year,” she said.

The 4PH program provides affordable homes and lower monthly amortization costs through various subsidies for Filipino workers who are members of Pag-IBIG Fund.

Housing units to be sold under the program are more economically priced than other residential units in the market in keeping with the price ceiling imposed by the government for affordable housing.

Apart from the 4PH, Pag-IBIG is also in communication with its partner developers to produce more socialized housing units.

“That’s what declined because the market for that is kind of unstable,” Acosta said.

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 P850,000 for socialized subdivision projects.

Further, Pag-IBIG said it would continue to enter into joint ventures with key shelter agencies, private landowners, local government units and other sectors to address the housing backlog problem in the country.

“Our key shelter partners have the lots but they don’t have the money for construction. So we will finance,” Acosta said.

“So all of these would help in reaching and hopefully exceeding the targets for the year,” she 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.

Currently, Pag-IBIG has 16.58 million active members.