October 16, 2024 | 12:00am
MANILA, Philippines — The Home Development Mutual Fund, commonly known as Pag-IBIG Fund, released P88 billion in home loans as of end-September, hitting a little over 60 percent of its full-year target.
During the Bagong Pilipinas Ngayon briefing yesterday, Pag-IBIG Fund CEO Marilene Acosta said home loan releases reached P88 billion in January to September, the same level as last year’s.
During the nine-month period, Pag-IBIG’s total number of financed homes reached roughly 55,000 members.
This is nearly 20 percent below the 68,211 members that benefitted from loans last year amid higher costs from developers and lower quantity.
The loans released as of the third quarter are equivalent to 61.5 percent of the target P143 billion in home loans to benefit about 115,000 members for 2024.
According to Acosta, Pag-IBIG is having difficulties in its home loans specifically in terms of compliance of critical documents among member-borrowers.
Despite this, Acosta said Pag-IBIG’s home loans are significant in reducing the housing backlog in the country given its low interest rate and longer loan term of up to 30 years.
Pag-IBIG remains at the forefront in home financing as it accounts for nearly 40 percent of the total home mortgages in the country.
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.
Standing out as the lowest interest in the loan market, Pag-IBIG first offered the subsidized rate five years ago to help more members, particularly those from the minimum-wage sector, own their homes.
Currently, Pag-IBIG has 16.24 million active members. Its total assets stood at P986 billion as of end-June.
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