The Home Development Mutual Fund, commonly known as Pag-IBIG, has released a record P118 billion worth of housing loans last year for over 100,000 members.
Pag-IBIG said home loans jumped by 21 percent to P117.85 billion in 2022, its highest home loan release since the fund was established. This is also above Pag-IBIG’s P110 billion target for 2022.
It has been registering record high releases last year on the back of strong demand for home loans as Pag-IBIG interest rates remain low despite the current market trend, high loan-to-appraised value ratio, long repayment period and better insurance terms.
Pag-IBIG’s total number of financed homes also increased by 11 percent to a record 105,212 last year.
Pag-IBIG CEO Marilene Acosta said this marked the first time that the agency has financed more than 100,000 housing units in a single year.
Of the total housing units financed in 2022, 18,657 or 18 percent were socialized housing units which are now owned by members from the minimum-wage and low-income sectors.
Under the Marcos administration, Pag-IBIG intends to finance at least 708,000 housing units.
Under the Pag-IBIG’s Affordable Housing Program, eligible borrowers have a special subsidized rate of three percent per annum for home loans of up to P580,000 for socialized subdivision projects.
Standing out as the lowest interest in the loan market, Pag-IBIG first offered the subsidized rate five years ago to help more members, particularly those from the minimum-wage sector, have their homes.