Pag-IBIG Fund Helps 25,000 Low-Income Workers to Own Homes
Manila, Philippines—Last year, Pag-IBIG Fund assisted 24,983 low-income workers in buying and owning their dream home through the Pag-IBIG housing loans, with a combined loan value of P8.5 Billion.
Pag-IBIG Fund Officer-in-Charge Acmad Rizaldy Moti said the number of units is 33% of the Fund’s 76,247 total housing loan portfolio last year, and higher by 25% or about 5,000 units more than the total socialized housing units delivered in 2015.
“Pag-IBIG Fund actively contributes to the efforts of the national government and the housing industry to offer decent and affordable housing to the underserved sector,” Moti said, adding that the Pag-IBIG member-borrowers, under socialized housing, are mostly minimum-wage earners and individuals from low-income groups that include household helpers and public utility vehicle drivers who do not have access to the housing loan facilities of private financing institutions.
The Housing and Urban Development Coordinating Council (HUDCC) set the socialized housing price ceiling at P450,000.
Moti explained that Pag-IBIG partnership with employers has become an effective strategy in providing socialized housing to the employees.
The partnership, according to Moti, allows employers to offer the housing units at a price lower than the appraised value.
He cited the housing project of Dole Philippines and the local governments of Malabon City and San Carlos City in Negros Occidental where the beneficiaries were able to purchase at only P450,000 the housing units that carry appraised values of more than P650,000. The Dole Philippines project has 144 duplex housing units, each having a 35 sq.m. housing unit in a 70 sq.m. lot area complete with a partition for two bedrooms.
“This is made possible because our partners usually own the land like in the case of Dole, which also adopted the ‘sweat equity’ concept in house building. In the same manner, LGU-owned properties are utilized for their housing projects and they waive development related fees,” Moti explained.
Under Pag-IBIG’s Affordable Housing Program for minimum-wage earners, qualified borrowers may avail of the subsidized interest rate for housing loans not exceeding P450,000 at a yearly rate of 4.5% for the first 10 years of a 30-year loan, with a monthly amortization of around P2,280 only. (Press Release)