Pag-IBIG doubles housing subsidy period to 10 years

MANILA, Philippines, August 19 ------ The Home Development Mutual Fund, commonly known as Pag-IBIG Fund, will extend its special three percent housing loan rate for qualified borrowers under the Expanded Pambansang Pabahay para sa Pilipino (Expanded 4PH) Program, doubling the standard five-year subsidized period.

It will extend the loan rate for the first 30,000 borrowers, and the period to 10 years, in a move to make home financing affordable and accelerate the administration’s housing agenda. Department of Human Settlements and Urban Development Secretary Jose Ramon Aliling, who chairs the Pag-IBIG board of trustees, said the extension of the subsidized rate would allow borrowers to enjoy rates much lower than prevailing market rates for a longer period. “Aside from covering both house and lot and condominium units that members can purchase at a special rate for the first five years of the loan term, we are extending the effective period of the subsidized rate to 10 years for the first 30,000 borrowers,” he said.

Eligibility includes first-time home buyers earning up to P47,856 in Metro Manila and P34,686 outside NCR for the three percent rate, as well as all overseas Filipino workers regardless of income, widening access to affordable Pag-IBIG housing loans. “This means they will enjoy the three percent rate, already much lower than prevailing market rates, for a full decade, making home ownership even more affordable,” the housing secretary added.

Under the program, members can avail loans to purchase socialized housing units priced up to P850,000, or condominium units worth as much as P1.8 million in accredited Expanded 4PH projects. Additional financing of up to P100,000 is offered for home improvements, which may include expenses such as installing utility connections, adding essential home fixtures, and completing other necessary household upgrades.

Pag-IBIG CEO Marilene Acosta said the extended fixed rate gives workers a stronger chance to secure homes. “As we carry out our mandate to uplift the lives of our members… with significantly lower monthly payments for a longer period, more Filipino workers can now achieve their dream of owning a home,” she said.

Source: philstar.com