Pag-IBIG Fund finances homes of 16,975 low-wage workers in 2020

Pag-IBIG Fund financed socialized housing loans of 16,975 members belonging to
the minimum-wage and low-income sectors in 2020 despite the pandemic, its top
executives said on Thursday (February 11).

Socialized housing loans represent 27% of the 63,750 units financed by the agency,
and amount to P7.18 billion out of the P63.75 billion in total housing loans it
released last year.

“Pag-IBIG Fund’s Affordable Housing Loan Program offers the lowest rate and longest
term for minimum and low-wage workers. Even as the pandemic posed numerous
challenges last year, we were still able to provide many of our workers belonging to
this sector the means to acquire their own homes, under the most affordable
terms. This is our way of adhering to President Rodrigo Roa Duterte’s directive to
government institutions to provide programs that serve the needs of the underserved
sector,” said Secretary Eduardo D. del Rosario, Chairperson of the Department of
Human Settlements and Urban Development (DHSUD) and the 11-member Pag-IBIG
Fund Board of Trustees.

Pag-IBIG Fund’s Affordable Housing Program offers a subsidized rate of 3% per
annum for members earning not more than P15,000 per month within the National
Capital Region, and not more than Php 12,000 per month for members outside of
NCR, who will buy socialized housing units. Under the program, members can
borrow up to PHP 580,000 to buy socialized houses, or up to PHP 750,000 for
socialized condominium units, at 3% per annum, a special rate provided to a minimum
and low-wage workers since May 2017.

The loan program also features a 100% loan-to-value ratio allowing borrowers to
enjoy equity-free purchase of housing units.


According to Pag-IBIG Fund Chief Executive Officer Acmad Rizaldy P. Moti, the agency
is able to keep offering the lowest interest rate in the market because of its
tax-exempt status provided under Republic Act No. 9679.

“Pag-IBIG Fund is able to subsidize the low-interest rate that minimum and low-wage
workers enjoy under our Affordable Housing Loan Program being a tax-exempt
agency, as prescribed under our charter. We are happy that the new CREATE bill
seeks to continue to preserve this tax-exempt status of Pag-IBIG Fund, and thus
allow us to continue offering these subsidized rates. We are grateful to our
lawmakers who share our vision to make homeownership attainable, especially for
the underserved sector. And, as we continue to face challenges imposed by the
pandemic, we shall continue doing our best to help more low-income workers secure
their own homes where they can be safe,” said Moti.


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