Pag-IBIG offers ‘promo rates’ for housing loans till December

Filipinos can now avail of housing loans with the “lowest interest rates” until December.

 

Department of Human Settlements and Urban Development (DHSUD) Secretary Eduardo del Rosario on Friday announced the approval of the Home Development Mutual Fund (Pag-IBIG Fund) promotional rates for its members who would apply for housing loans under the End-User Financing Program from July until December 29.

 

“By offering these special rates to our members, we are spurring economic activity in the housing industry, which has a ripple effect on the national economy,” del Rosario, also chairman of the Pag-IBIG Fund Board, said in a statement.

 

Pag-IBIG is offering a special low-interest rate of 4.985 percent, from 5.375 percent per annum under a one-year repricing period and a 5.375 percent interest, from 6.375 percent per annum under a three-year repricing period.

 

The subsidized home loan interest rate for the Affordable Housing Program, which is available for low and minimum wage earners remains at 3 percent per annum.

 

Pag-IBIG declared the pricing as the lowest rates under its Regular Housing Loan program, which would only be available until the end of the year.

 

“This is a win-win situation because our members get to take advantage of these home loan rates, while the purchase of their homes will help generate more jobs to get our economy back on track. This then, is our contribution to our nation’s journey to recovery, as led by President (Rodrigo) Duterte,” del Rosario said. “This is another proof that Pag-IBIG Fund is pro-active in looking after the welfare of its member-borrowers. This promotional scheme will be huge for those who are planning to own their dream homes.”

 

Meanwhile, Pag-IBIG Fund Chief Executive Officer Acmad Rizaldy Moti said the new interest rate for the three-year repricing period would only apply if the borrower’s existing account has been active during the first and second anniversary for the promotional rate, which will be extended for another year.

 

Moti said the non-performing (inactive) loans during the first or second anniversary would revert to the risk-based pricing.

 

Pag-IBIG also projected a takeout value of about PHP50 billion for July to December 2020, he said, estimating a PHP1.376-billion interest income-loss over three years.

 

“We review our rates regularly and have never repriced it upward under the Duterte administration. Our ever-improving quality of the portfolio has allowed us to keep the rates low under our Risk-Based Pricing Model. But this time, we are offering something special,” Moti said, noting that the promotional rate is part of the housing department’s commitment to ease public burden amid the pandemic in the country.

 

Considering the impact of the pandemic on the livelihood of Pag-IBIG members, he said they reduced the home loan rates by as much as 100 basis points for the next six months because they want to help members who are thinking of buying a home to take advantage of the “lower-than-lowest rates.”

 

“Even amid the pandemic, now is the best time to buy a home with a Pag-IBIG housing loan,” Moti said.

 

Pag-IBIG has earlier imposed a three-month moratorium on the payment of housing loans and other loan programs during the health crisis. (PNA)

 

Source: Philippines News Agency

 

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