SECTIONS
philippines
Wednesday, August 04, 2021

Pag-IBIG: interest rate will be retained

STATE-RUN Home Development Mutual Fund (Pag-IBIG) will keep its interest rates for housing loans at 6.5 percent this year under a three-year fixed-pricing scheme.

This was according to Pagibig Visayas business development department manager Rio Teves, who also noted that the interest rate this year might go lower, based on initial observations. Presently it remains at 6.5 percent, following the rate imposed since June 2015.

However, there are exceptions.

According to Teves, Pag-IBIG offers lower interest rates to the low-income earners and typhoon Yolanda-affected households.

For those affected by the supertyhoon in 2013, the official said Pag-IBOG offers zero interest for the first six months for a house and lot unit valued at P450,000 and below. On the seventh month to the 24th month, a four percent interest rate will apply.

In 2015, only 17 percent of the P1.2 billion loan allocation for Yolanda-affected households were availed, equivalent to 328 houses, instead of the intended 2,761 houses.

Teves has encouraged affected Pag-IBIG members to avail of the said program this year, since this will still be retained.

Meanwhile, Pag-IBIG members in the Visayas earning P12,000 and below may avail of a housing loan package with a 4.5 percent interest rate per annum for house and lot units valued at no more than P450,000.

Pag-IBIG has 1.45 million active members in the Visayas and has collected P3.4 billion worth of contributions from January to November 2015.

The amount of loan releases for 2015 stood at P4.9 billion, equivalent to 5,653 houses.

Pag-IBIG offers up to 30-year loan term, with a 10 percent fixed interest rate per annum for the entire period. Members may also avail of a 25-year fixed interest rate of 9.05 percent, a 20-year fixed rate of 8.8 percent, a 15-year fixed rate of 8.585 percent, a 10-year fixed rate of 8.035 percent, and a five-year fixed rate of 7.27 percent.

Teves advises buyers to avail of the three-year repricing at 6.5 percent interest rate per annum since interest rates are forecasted to even go lower over the years.

With head-on competition from the banks, Teves assured Pag-IBIG members that they can get cheaper rates at Pag-IBIG with a filing fee of only P1,000.

Banks, on the other hand, could impose additional costs that could go as high as P20,000, he said.

He also reminded members that they can avail of multiple Pag-IBIG housing loans provided they are qualified, can afford the monthly amortization, and the loan value does not exceed P6 million.
style="display:block; text-align:center;"
data-ad-layout="in-article"
data-ad-format="fluid"
data-ad-client="ca-pub-2836569479021745"
data-ad-slot="1977900730">


VIEW COMMENTS
DISCLAIMER:

SunStar website welcomes friendly debate, but comments posted on this site do not necessarily reflect the views of the SunStar management and its affiliates. SunStar reserves the right to delete, reproduce or modify comments posted here without notice. Posts that are inappropriate will automatically be deleted.


Forum rules:

Do not use obscenity. Some words have been banned. Stick to the topic. Do not veer away from the discussion. Be coherent. Do not shout or use CAPITAL LETTERS!

sunstar.com.ph