January 22, 2023 | 12:00 a.m
MANILA, Philippines – The Home Development Mutual Fund, commonly known as Pag-IBIG, has disbursed a record P118 billion worth of loans last year to more than 100,000 members.
According to Pag-IBIG, loans increased by 21 percent to P117.85 billion in 2022, which is the highest level of housing loans since the fund was established. This is also higher than Pag-IBIG’s P110 billion for 2022.
Record highs were recorded last year due to strong demand for housing loans as Pag-IBIG interest rates remained low despite in current market conditions, high loan-to-appraised ratio, long repayment period and better insurance terms.
The number of Pag-IBIG credit facilities also increased by 11 percent to record 105,212 last year.
The CEO of Pag-IBIG, Marilene Acosta, said that this is the first time that the agency has financed more than 100,000 houses in one year.
Of the total number of houses financed in 2022, 18,657 or 18 percent of social houses are currently owned by members of the low-wage and low-income groups.
Under the Marcos administration, Pag-IBIG is expected to finance at least 708,000 houses.
Under the Pag-IBIG program, borrowers are eligible for a special interest rate of three percent per year for home loans of up to P580,000 for development. to be seen.
The high level of low interest in the loan market, Pag-IBIG first offered the rate five years ago, to help many members, especially those from the group of low wages, to get their houses.