Pag-ibig sets P5.22 B as Visayas loan target

STATE-OWNED Home Development Mutual Fund (Pag-ibig Fund) is setting this year’s housing loan target for Visayas at P5.22 billion, which is equivalent to 8,126 housing units.

Of the amount, P2.3 billion will be for Cebu at 3,022 units; P1.25 billion for Tacloban at 2,761; P865 million for Iloilo at 1,262 units; and P790 million for Bacolod at 1,081 units.

Interest rate

Pag-ibig Visayas business development manager Rio Teves said the interest rate for regular housing loan is 6.985 percent, similar to last year’s rate.

In 2014, Pagibig Visayas set a target of P3.187 billion for housing loans in the region. However, this was exceeded by more than a hundred percent when in November last year, it registered a 114 percent increase, totalling P3.633 billion.

In 2013, however, Pagibig Visayas failed to meet its housing loan target of P4.109 billion. Instead, it only recorded P2.72 billion loans in the first ten months of that year.

Real estate industry players and officials attributed the current growth of the sector to “financial availability,” with Pagibig Fund becoming competitive with the rates offered by banks.

It was also last year when Pagibig decreased its interest rate to 6.985 percent from the 7.3 percent in 2013 and as high as 11.5 percent in the previous years. This was credited as a major factor in the increase in the number of housing loan borrowers in 2014, said Teves in previous interview.

Growth factors

Other factors for the growth, according to the official, are the newly-instituted reforms in Pagibig. These include, among others, a fixed loan to value ratio of 100 percent for loans less than P450,000, provided that the property is a socialized housing unit, 90 percent for loans up to P1.25 million, and 85 percent for loans over P1.25 million.

Pag-ibig also allowed three borrowers under a single loan. Co-borrowers, he said, need not be related to the principal borrower.

Housing portfolio

In Visayas, Pag-Ibig vice president for home lending operations Fermin Sta. Teresa Jr. said last December that its housing portfolio is at 56,731 housing units to existing borrowers for a total amount of P27.4 billion.

Sta. Teresa said Pag-Ibig has a total of 12 million members and P340 billion in assets.

Meanwhile, Teves, in an email, also reminded Pagibig members that it will be implementing new housing loan fees starting April 1 this year.

Processing fees will be at P3,000 (P1,000 up front and P2,000 to be deducted from the takeout proceeds). Appraisal fees will be P2,000 for retail and P1,000 for developer-assisted loans. Refilling fees will be at P1,000 and service fee for splitting of checks will be at P2,000 per additional check.
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