HUDCC, Pag-IBIG cited for lowering interest rates

Vice President Noli de Castro, chairman of the Housing and Urban Development Coordinating Council (HUDCC), Atty. Romero F.S. Quimbo, president/CEO of Home Development Mutual Fund (Pag-IBIG Fund), and the entire HDMF board of trustees, have been cited by the Organization of Social Housing Developers of the Philippines (OSHDP) for their "historical and precedent-setting" reduction of interest rates in housing loans, extension of payment terms, and lowering of monthly amortizations of borrowers. It is, OSHDP said, "a truly meaningful Christmas gift to Filipinos, particularly the minimum wage earners and government workers."

OSHDP chairman Giovanni Olivares and president Wilfredo Tan cited the interest rates lowering from nine to six percent for loans of up to P300,000; from 10 to only seven percent for above P300,000 to P500,000 loans; from 11 to 10.5 percent for above P500,000 to P1 million loans; and from 12 to 11.5 percent for above P1 million to P2 million loans.

They also praised De Castro and Quimbo for increasing the maximum payment term to 30 years and reducing the monthly amortizations from P2,413.87 to P1,798.65 for P300,000 loan; and from P4,387.86 to only P3,326 for P500,000 loan.

These positive measures have long been awaited by the housing industry, Olivares and Tan said. "These rates are the most competitive in the market, serving to propel the industry to an upbeat outlook for the next five to 10 years. Indeed, the low-end Pag-IBIG Fund borrowers now have greater access to the Fund without being constrained by the issue of affordability."

OSHDP recalled its lobbying for reduced interest rates for socialized, economic and low-cost housing packages and for a review of price ceilings. Government’s affirmative reception through HUDCC and Pag-IBIG Fund, Olivares and Tan said, is instrumental in increasing production and delivery of low-cost housing units. "This shows that collaboration and partnership among the government, financial institutions and the private sector can do a lot to help and uplift the country’s underprivileged and homeless people by making available decent housing at an affordable cost, basic services and employment."