Metro Manila (CNN Philippines) — Pag-IBIG Fund has made home financing even more affordable for its members after the agency lowered interest rates on its housing loan, top officials announced Tuesday, July 18.
“We are keenly aware of the need to provide affordable housing to our members who dream of having their own homes. With Pag-IBIG Fund’s strong performance and robust fiscal standing, we are happy to announce that we have reduced the interest rates on our housing loan, making homeownership even more attainable for all Filipino workers,” said Secretary Jose Rizalino Acuzar, who heads the Department of Human Settlements and Urban Development and the 11-member Pag-IBIG Fund Board of Trustees.
“This is in line with the directive of President Ferdinand Marcos Jr. to address the country’s housing backlog and help our fellow Filipinos gain better and dignified lives under the Pambansang Pabahay para sa Pilipino Housing or 4PH Program,” he added.
Under the new rates, the Pag-IBIG Housing Loan now carries a lower interest of 6.25% per annum under a 3-year repricing period from the previous 6.375%. Interest rates for the 5, 10, 15, 20, 25 and 30-year repricing periods have also been reduced to 6.5% from 6.625%, 7.125% from 7.375%, 7.75% from 8%, 8.50% from 8.625%, 9.125% from 9.375%, and 9.75% from 10%, respectively. The new rates came to effect on July 1.
Meanwhile, the agency’s home loan rate under its 1-year repricing period remains at 5.75% per annum, while its special interest rate for home loans of minimum-wage earners under its Affordable Housing Program remains at 3% per annum, the lowest in the market.
According to Pag-IBIG Fund Chief Executive Officer Marilene Acosta, the agency was able to reduce its home loan rates due to its strong fiscal standing, record-high collections and high performing loans ratio.
“We at Pag-IBIG Fund take to heart our responsibility to provide our members with affordable home financing. With our performing loans ratio at a high 92.53% and collections from both membership savings and loan payments at a record-high, we are able to effectively fund the high demand for our home loans without the need to borrow from the market,” Acosta said.
“As a result, we were able to reduce the interest rates on our housing loan, despite the upward market trend. This is truly Lingkod Pag-IBIG, Tapat na Serbisyo Mula Puso, at work,” she added.
