Pag-IBIG Fund financed 5,411 socialized homes for minimum-wage and low-income members in the first four months, top executives said Wednesday.
Socialized home loans made up 18 percent of the 29,310 units funded by the agency from January to April. In terms of amount, socialized home loans represented 7 percent, or P2.35 billion of the record P31.97 billion home loans released by the agency for the period.
“Socialized housing is designed especially for minimum and low-wage workers. With Pag-IBIG Fund’s Affordable Housing Program, we make sure that all our members, particularly those from the low-income sector, are given the opportunity to own a home,” said Department of Human Settlements and Urban Development Secretary Eduardo del Rosario.
“This is the essence of the BALAI [Building Adequate, Livable, Affordable and Inclusive] Filipino Communities Program of the government’s housing sector towards providing decent shelter for every Filipino family,” said del Rosario, who is also the chairperson of the 11-member Pag-IBIG Fund board of trustees.
The Pag-IBIG Fund’s Affordable Housing Program is for members from the low-income and minimum-wage sectors who earn up to P15,000 a month in the National Capital Region and up to P12,000 per month outside the NCR. Under the AHP, borrowers enjoy a subsidized rate of 3 percent per annum for home loans of up to P580,000 for socialized subdivision projects, and up to P750,000 socialized condominium projects.
Pag-IBIG Fund chief executive Acmad Rizaldy Moti said the AHP’s 3-percent rate remained the lowest in the market—a rate that the agency provided for low-income members since May 2017 and is able to offer due to its tax-exempt status as prescribed under Republic Act No. 9679 or the Home Development Mutual Fund Law of 2009.
“Because of our Charter, Pag-IBIG Fund is able to provide the lowest rates for the home loans of minimum and low-wage workers. We first offered our subsidized 3% rate in May 2017 to help more members realize their dreams of owning a home. And, until now, that special rate still stands. Aside from keeping our interest rates low, we also keep the insurance premiums at a minimum, so that our borrowers would only need to pay a low monthly amortization of P2,445.30 for a socialized home loan of up to P580,000,” Moti said.
“And what’s more, qualified borrowers will never have to put out cash for equity under our Affordable Housing Program. All of these are part of our efforts to provide the best home financing program for our members who earn minimum wage,” Moti said.