Socialized housing makes up 28% of total home loans

PAG-IBIG Fund has financed 27,145 socialized homes for minimum-wage and low-income members in 2019, its top executives said.

The number of socialized home loans make up 28 percent of the total 95,276 home loans released by the agency last year.

Meanwhile, in terms of the amount, socialized home loans summed up to P10.64 billion, which is 12 percent of the record-high P86.74 billion home loans released by the agency in 2019.

“The Affordable Housing Loan Program, which is Pag-Ibig Fund’s socialized housing loan program, is designed specifically to help minimum and low-wage workers buy or build a home of their own,” said Department of Human Settlements and Urban Development Secretary Eduardo del Rosario.

The Affordable Housing Program (AHP) is for members who earn up to P15,000 a month within the National Capital Region (NCR) and members who earn up to P12,000 per month outside the NCR.

Under the AHP, Pag-Ibig Fund offers a subsidized rate of three percent per year for socialized home loans up to P580,000.

Pag-Ibig Fund Chief Executive Officer Acmad Rizaldy Moti said the three percent rate is the lowest in the market which the agency was able to offer due to its tax-exempt status, as prescribed under Republic Act 9679 or the Home Development Mutual Fund Law of 2009.

“We first offered the three percent rate in May 2017 and until now, that rate still stands, as we seek to help more members realize their dreams of owning a home,” said Moti.

Aside from keeping the interest rates low, Pag-Ibig Fund also reduced the insurance premiums, which keeps the monthly amortization at an affordable P2,445.30 for a socialized home loan of up to P580,000. (PR)