Pag-IBIG's P10M max housing loan to boost housing sector - DHSUD

The hike in the Pag-IBIG Fund’s housing loan ceiling of up to P10 million will boost the housing sector and enable more middle-income Filipinos to have decent, affordable homes of their own, the Department of Human Settlements and Urban Development (DHSUD) said.

In a statement on Sunday, DHSUD Secretary Jose Ramon Aliling said the expanded financing initiative is expected to increase housing update in urban areas, especially for available condominium and residential units.

The higher loan ceiling will help more Filipino workers and professionals secure homes in areas closer to jobs, transport systems and essential services where property values have significantly increased.

In return, the stronger housing demand will create ripple effects on employment and business opportunities, especially in construction, manufacturing, transport, retail, furniture, and other allied industries that benefit from housing development and occupancy.

“Dahil sa pagtaas ng loanable amount sa Pag-IBIG, patuloy nating pinalalawak ang saklaw ng Expanded 4PH Program upang mas marami pang Pilipino ang magkaroon ng pagkakataong makabili ng sariling bahay,” Aliling said.

(Because of the higher loanable amount with Pag-IBIG, we continue to expand the coverage of the Expanded 4PH Program so that more Filipinos will have the chance to buy their own homes.)

The Expanded 4PH Program is President Ferdinand Marcos Jr.’s Expanded Pambansang Pabahay para sa Pilipino (4PH) Program, the government’s flagship housing initiative.

“Kasabay nito, napapagalaw din natin ang ekonomiya dahil maraming sektor ang konektado sa pabahay. Kapag may housing development, mas maraming trabaho at mas maraming negosyong nakikinabang,” he added.

(Along with this, we can boost the economy because there are many sectors related to housing. If there is housing development, there are more jobs and more businesses that would benefit.)

Last week, the Home Development Mutual Fund (HDMF) or Pag-IBIG Fund said it has raised its maximum housing loan amount per borrower to P10 million in a bid to expand access to home financing to middle-income and higher-earning Filipino workers amid an oversupply of occupancy-ready condominiums in Metro Manila.

Pag-IBIG Fund said the higher loan ceiling complements the program’s ongoing subsidized 3% housing loan rate for qualified buyers of socialized housing.

Aliling, the chair of the Pag-IBIG Fund’s board of trustees, also called on developers to support the government’s affordability thrust by offering more competitive and market-responsive housing packages for Pag-IBIG members.

“We should meet halfway – we increase the loanable amount, they (developers) lower their prices. We expect this move to sustain the vibrancy in the housing sector,” he said.

Under the updated Pag-IBIG housing loan program, qualified members may now avail of financing of up to P10 million, payable for up to 30 years.

The higher maximum loan amount remains subject to credit evaluation, capacity-to-pay requirements, collateral appraisal, and other housing loan guidelines. — JMA, GMA News