IN a bid to keep homeownership affordable, the Pag-IBIG Fund announced on Monday that it would maintain its 3-percent annual interest rate for qualified socialized housing loans under the expanded Pambansang Pabahay para sa Pilipino (4PH) program.
Housing Secretary Jose Ramon Aliling, who chairs Pag-IBIG’s board of trustees, said in a statement that the move was in support to President Ferdinand Marcos Jr.’s directive to keep decent and affordable housing within reach of Filipino workers, especially those from the low-and-moderate income sectors seeking to own their homes.
“In keeping with the directive of President Ferdinand R. Marcos Jr., Pag-IBIG Fund shall maintain the 3-percent interest rate for qualified socialized housing loans under the Expanded 4PH so that more Filipino workers can continue to pursue homeownership even during a time of global uncertainty,” Aliling said.
“By keeping monthly amortizations low, we are helping more working families secure a home of their own while supporting sustained housing production and the jobs it generates, in step with broader national efforts to keep the economy stable,” he added.
Pag-IBIG CEO Marilene Acosta, meanwhile, said the move also reflects the agency’s strong fiscal standing and its continuing commitment to carry out the president’s housing agenda in a way that keeps homeownership within reach of working Filipino families.
“We continue to heed the direction of President Marcos in helping uplift the lives of Filipino workers by keeping homeownership affordable for those who need it most,” Acosta said.
She added: “Our strong fiscal standing allows Pag-IBIG Fund to keep the subsidized 3-percent rate in place so more working Filipinos can continue pursuing homeownership under the Expanded 4PH.” Under the program, first-time homebuyers, particularly those earning less than P47,856 per month in the National Capital Region (NCR) and less than P34,686 outside NCR, may qualify for the subsidized 3-percent rate for the first five years of the loan term.
Pag-IBIG said all overseas Filipino workers, regardless of income, may also qualify.
Moreover, it said that under Pag-IBIG Fund’s Early Bird Promo, the first 30,000 qualified borrowers may enjoy the same 3-percent rate for the first 10 years of their housing loan, allowing them to save more and benefit from affordable and predictable monthly amortizations for a longer period.
Acosta said the loan may be used to purchase socialized house-and-lot and condominium units priced at up to P950,000 and P1.8 million, respectively.
It also provides up to P100,000 in additional financing for home improvements, such as utility connections and home fixtures, and carries a 100-percent loan-to-value ratio, meaning no cash equity is required.
At these terms, Acosta explained that monthly amortization is about P4,005 for a house-and-lot unit worth up to P950,000 and about P7,589 for a condominium unit worth up to P1.8 million, amounts that are lower than the cost of monthly rent.
In addition, she said that eligible borrowers may further benefit from additional subsidy provided by the national government, which may bring down the annual interest rate to as low as 1 percent and make monthly payments even lower.
The agency said that beyond keeping loan rates low, Pag-IBIG is also making it easier and less costly for members to look for a home through regional housing fairs that bring together quality housing units available for sale, partner developers, and Pag-IBIG Fund financing support in one venue.
Pag-IBIG has launched its series of regional housing fairs through the Central Luzon Housing Fair earlier this year while similar fairs would take place in South Luzon, the Visayas, Mindanao, and Metro Manila in the coming weeks, Acosta said.
The Central Luzon fair gathered over 40 developers, financing institutions, and government agencies in one venue and provided on-site assistance for loan applications, she said.
“Through these regional housing fairs, we are making it easier and less costly for members to find a home by bringing quality housing units available for sale, partner developers, and Pag-IBIG Fund financing together in one place,” Acosta said.