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Pag-IBIG home loan interest unchanged despite inflation – exec

by Malou Talosig-Bartolome

Interest rates for housing loans of the state-owned Home Development Fund (Pag-IBIG Fund) will remain unchanged despite high inflation, which pressures the banking sector to increase borrowing rates.

Benjamin Felix Jr., acting deputy chief executive officer, said Pag-IBIG Fund remains committed to providing affordable shelter financing to Filipinos. 

“Habang patuloy na nagre-respond ang ating developers, nandyan ang supply, and habang stable ang demand ng ating mga kababayan, we will try as much as possible to maintain the low interest rate of Pag-IBIG Fund,”  Felix told republicasia in an interview.

As of January 1, 2022, the interest rate of Pag-IBIG housing loans varies, depending on the payment terms. These are:

Delinquency rate now at pre-pandemic level

Felix said the number of delinquent borrowers has also reduced this year to the pre-pandemic levels, an indicator that housing market and the economy is indeed recovering.

The delinquency rate this year, he said, is at around 9 percent. 

At the height of the pandemic in 2020, the delinquency rate rose to as high as 30 percent.

“As much as possible we will maintain our interest rate manageable, lalo na ngayon na gumaganda ang aming delinquency level, na me-maintain namin na mababa,”

190,000 housing units financed

During the first 11 months of this year, Pag-IBIG broke its record by releasing P104 billion worth of loans to 190,000 housing units.

“2022 is another breaking year for Pag-IBIG . Nakikita natin na sumisigla ang ating housing industry. Mas maraming umuutang kasi siguro nawala na ang agam-agam in the pandemic,” Felix said.

Recession or not, Pinoys will continue to buy house

He believes that next year, despite the cloud of world recession, more Filipinos will buy properties. So, they are targeting to release P117 billion worth of loans for its members.

“Very unique ang need for housing ng ating mga kababayan – makuha ang kanilang dream home ownership. Nakikita namin for next year na tataas pa rin po ang take up for housing,” Felix added.

He believes the pandemic also triggered many Filipino families to buy their own houses.

“Dahil po sa pandemic, ang mga tao siguro hinangad na magkaroon ng sariling bahay na kailangan may spacing, distancing, kailangan ng quarantine,” he explained.

Recession or not, he thinks, the Filipinos’ need for housing is “stable.”

“Year on year, tumataas ang need ng 10-15 percent. Nakikita po namin na magpapatuloy yan for the next 5 years na tataas po ang takeup o pagtingin ng ating mga kababayan,” he said.



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