Manila Bulletin
March 26, 2006
More Pag-IBIG housing funds at lower rates
The Pag-IBIG Fund is earmarking more funds for housing financing this year and plans to lower interest rates on its enduser housing loan program.
This was revealed by Vice President Noli de Castro, concurrent chairman of the Housing and Urban Development Coordinating Council (HUDCC) and the Pag-IBIG Fund Board of Trustees, in his address during the 21st Oath-Taking Ceremony of the Realty Service Council of the Philippines (RESCOP).
According to De Castro, the Pag-IBIG Fund granted a total of R15.11 billion in end-user housing loans in 2005, "the highest retail lending disbursement in its history."
He added that the Fund was able to make this accomplishment even as it registered a net income of R7.4 billion, also a record for the 25-year-old government corporation.
This year, in anticipation of a boom in the real estate sector predicted by experts, Pag-IBIG is allocating R22.082 billion for its shelter finance program.
"In addition, Pag-IBIG is also seriously considering the lowering of interest rates for housing loans for the lower and middle income groups," De Castro disclosed.
Under the proposed scheme, Pag-IBIG intends to lower the interest rate from 10 percent to 9 percent for the R300,000 package.
The interest rate for the R180,000 package will be reduced from the current rate of 9 percent to 7 percent, while a new bracket will be created to cover housing packages priced between R500,000 to R750,000 with an interest rate of 11 percent.
Pag-IBIG President and CEO Romero S. Quimbo said that the planned adjustment in interest rates aims to encourage more members to avail of housing loans, and more developers to undertake projects for the low- to middle-income earners.
"Pag-IBIG Fund was created precisely to give its members the means to afford buying their own home. The Fund has been getting stronger and stronger in the last five years, and it only stands to reason that its growth should lead to greater benefits for our members. Having more affordable loans will surely be a big plus for them," Quimbo said.
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