Pag-IBIG Fund disbursed P4.859 billion in socialized housing loans from January to June this year, benefitting 12,639 low wage earners.
Socialized housing makes up 32 percent of all homes financed by the Fund in the first half of the year, the agency said in a press statement.
The amount released is 22 percent higher than 2017’s P3.788 billion for the same period.
Pag-IBIG Fund aims to disburse a total of P8.873 billion by yearend of 2018 to finance 26,709 units under socialized housing.
“Socialized housing is designed especially for the low wage workers. President Rodrigo Roa Duterte directed that there be government programs catering to this marginalized sector, hence, we have this housing program intended for them. This is the essence of BALAI Filipino (Building Adequate, Livable, Affordable, and Inclusive Filipino Communities)—decent shelter for every Filipino family,” said Secretary Eduardo del Rosario, chairman of the Housing and Urban Development Coordinating Council and the Pag-IBIG Fund Board of Trustees.
Socialized housing is worth from P300,000 to P450,000.
Pag-IBIG Fund now offers the lowest 3 percent per annum interest rate—which is 33 percent lower than the previous 4.5 percent—and no equity required.
Pag-IBIG Fund subsidizes these low-interest rates through its tax savings, being a tax-exempt agency as specified under Republic Act 9679.
Pag-IBIG Fund Chief Executive Officer Acmad Rizaldy Moti said, ”The main driver of socialized housing is compliance among developers.
“They allot 15 percent of their development projects as socialized housing. This, in turn, helps low wage and minimum wage earners, who are the underserved sector, acquire a home of their own.”
With a reduced fire and allied perils monthly premium of only P79.69 and mortgage redemption insurance monthly premium of only P103.50, a member-borrower pays only P2,080.41 monthly amortization from the previous P2,651.50 for a P450,000 loan.