Pag-IBIG cuts home loan rates to 4.5% for affordable homeownership



The Home Development Mutual Fund (Pag-IBIG) on Thursday announced promotional home loan rates as low as 4.5% for members buying homes above the socialized housing price, in line with efforts to make homeownership more affordable.

According to Pag-IBIG, housing loan or installment amounts above the socialized housing price ceiling — currently at P950,000 for house-and-lot units and up to P1.8 million for condominium units and up to the low-cost housing ceiling of P2.5 million — will have an interest rate of 4.5% per annum fixed for three years.

Housing loans or installment amounts above the P2.5-million low-cost housing ceiling up to P10 million will be given a 5.75% interest rate per annum, also fixed for three years.

The loans will be repriced based on the borrower’s chosen repricing period after three years.

“By lowering our three-year fixed rates from 6.25% to as low as 4.5%, we are helping our members save on their monthly amortization during the first three years of their loan,” Pag-IBIG Fund chief executive officer Marilene Acosta said in an emailed statement.

“These savings can help families manage their daily needs, or even be set aside in their Pag-IBIG Regular Savings or MP2 Savings so they can better prepare for the future while taking the important step toward owning a home,” she added.

Under its charter, the Pag-IBIG Fund is mandated to establish, develop, promote, and integrate a nationwide sound and viable, tax-exempt mutual provident savings system suitable to the needs of the employed and other earning groups.

It is also mandated to motivate the public to better plan and provide for their housing needs through membership in the HDMF, with mandatory contributory support from employers. –NB, GMA News