Pag-ibig Fund urges members to avail of housing loan offer

CEBU, Philippines - Aiming to leverage the lending capacity of its borrowers to become real estate investors, the Home Development Mutual Fund or Pag-ibig urged its members to take advantage of the agency’s housing loan program with the increased loanable amount and lower monthly interest rates.

Pag-ibig Cebu South Branch assistant manager for operations Anthony Maglunsod said that the agency aims to increase its active members and housing loans now that they could avail of the program at more affordable means.

Pag-ibig increased its loanable amount from 3 million to P6 million.

Maglunsod clarified that condominium units that cover up to P6 million could be approved so long as the member could pay the required monthly amortization of P43,963.15 for a 30-year term and has a monthly gross income of P146,543.83.

The housing loan varies from P400,000 up to P6 million.

He also cited that monthly housing loan interest rates have been decreased from 10 percent to 7.985 percent.

For instance, a 2-million housing loan in a 30-year term for a 3-year repricing would have a monthly interest of P14 564.68 at 7.985% compared to the previous P18 294.79 at 10% interest rate.

He said that a member could now save P3640.41 with the new, lowered interest rate.

Such changes, he added, is in accordance to the agency’s fund pricing framework that has adapted the prevailing market rates in the real estate industry and robust economic growth in the country.

“We had never repriced up. Pag-ibig has continued to reprice down its rates but not less than 2%,” Maglunsod said.

This year, he said that the government has allotted a P50-billion budget for Pag-ibig housing loans for its members nationwide.

Pag-ibig has allocated a total of P1.8 million for the Cebu province of which P1.2 billion is intended for northern Cebu members while the remaining P616,000 for Cebu south members.

Out of the 12 million active members nationwide, there are 400,000 borrowers registered in the Cebu south branch while 370,000 in the north branch.

Only 14,000 of the 400,000 registered borrowers in Cebu south are considered as active members, Maglunsod noted.

The Cebu south housing branch covers Cebu City, southern Cebu, Siquijor and Negros while the Cebu north branch encompasses Mandaue City, Mactan Island, northern Cebu and Bohol.

He further revealed that the two housing branches will soon be merged within this quarter.

Meanwhile, Pag-ibig Cebu South housing relations officer Noel Jesus Santiago cited that Pag-ibig loans are government-guaranteed, secured and not in the business of foreclosure since it provides an option for penalty condonation and restructuring.

He added that the Cebu south branch aims to reach 742 units to be taken out this year.

He cited that southern provinces in Cebu are mostly inclined to residential projects while condominium projects are usually found in Cebu City.

In southern Cebu, he said that there are around 10 existing housing projects under the Pag-ibig financing.  (FREEMAN)