Pag-IBIG President and CEO, Atty. Darlene Marie B. Berberabe recently announced that Pag- IBIG home loans under the regular program are now even more affordable at only 5.5% per annum interest rate for the first year of the loan term for housing loans up to P6 Million. This is the lowest rate offered by the End-User Financing Program. To avail of the lowest rate of 5.5% per annum, borrowers must meet the following criteria: the monthly amortization should not exceed 30% of the borrower's gross monthly income; and the ratio of the loan amount to the appraised value of the collateral shall not exceed 75%.
“We hope to entice our members who are eyeing home packages that are priced more than socialized housing. To give our members an idea of how affordable our housing loan package is, the monthly amortization for a P2 Million home loan will be P11,355.78 at 5.5% and P12,641.36 at 6.5%. The computed amortization consists of the principal and interest,” said Atty. Berberabe.
This is the fifth time that Pag-IBIG Fund has cut its rates in its home loan programs in the last 5 years. “We have made this possible by improving our fundamentals, that is, by improving underwriting as well as collection. We are focused to further enhancing our housing program to pursue our vision of providing decent shelter for our Filipino workers,” Atty. Berberabe shared.
“We also offer our Affordable Housing Program, where minimum-wage earners can borrow up to P450,000 for only 4.5% per annum. The rate is good for the first 10 years of the loan term which term can go up to 30 years. This is exclusively for minimum wage earners to help them buy a home for the price of renting one. Now our kasambahays and drivers can actually own homes for monthly amortization of P2,280.08, which include the principal and interest,” Atty. Berberabe said.
For 2016, the agency targets to approve more than P60 Billion in home loans, to finance over 76,000 homes.