Pag-IBIG housing guidelines amended

In line with the government’s move to make housing within the easy reach of Filipino families, the Pag-IBIG board of trustees recently approved the amendment to the Pag-IBIG Housing Loan Guidelines. The amended guidelines consolidate the provisions under the Expanded Housing Loan Program (EHLP) and the housing program for middle-income and Pag-IBIG overseas members.

Part of the amendment is the reduction of interest rates. The new rates are nine percent per annum for loans of up to P180,000; 12 percent for loans over P180,000 up to P500,000; and 14 percent for loans over P500,000 up to the maximum loanable amount of P2 million.

These rates shall cover loans whose payments are made on or before the due date. The nine percent interest rate shall apply to all housing loans of up P180,000 regardless of the selling price of the house and lot package to which the loan proceeds are applied. The interest rate for prompt payors is a form of incentive scheme for those who shall remit on or before the due date.

However, if payment are made after the due date, then the interest rate shall be 12 percent for loans up to 180,000; 16 percent for loans over P180,000 to P500,000; and 18 percent for loans over P500,000 to P2 million.

At the same time, the new guidelines provide that a member borrower shall not be required to complete the 24 months of membership to qualify for a housing loan. The amended guidelines allow a member to make a lump sum payment equivalent to 24 monthly contributions to meet this requirement. Members under the Pag-IBIG Overseas Program (POP), on the other hand whose minimum monthly contributions is 12 months, shall also be allowed to make a lump sum payment to be able to comply with the membership requirement.

Under loan purpose, the refinancing of an existing mortgage loan with an institution acceptable to Pag-IBIG is now open to all qualified members, provided that the loan to be refinanced is current and updated at the time of loan application. The account must reflect a perfect repayment history for at least two years, as supported by the borrower’s official receipts.