Top officials of Pag-IBIG Fund announced on July 9 that they are offering promo rates on their home loans of as low as 4.985 percent per annum until the end of the year, in a move to help members acquire homes and help boost the national economy amid the pandemic.
The agency is offering special low rates of 4.985 percent per annum under a one-year repricing period and 5.375 percent per annum under a three-year repricing period. These are its lowest-ever rates under its Regular Housing Loan program, and are available to members getting new home loans until the end of 2020 only.
These further reduced the agency’s previous rates, already pegged at a low 5.375 percent per annum for the one-year repricing and 6.375 percent per annum for the three-year repricing period. Meanwhile, interest rates for its Affordable Housing Program, available for low and minimum-wage earners, remain at its lowest with a subsidized home loan interest rate of three percent per annum.
“By offering these special rates to our members, we are spurring economic activity in the housing industry, which has a ripple effect on the national economy. This is a win-win situation because our members get to take advantage of these home loan rates, while their purchase of their homes will help generate more jobs to help get our economy back on track. This then, is our contribution to our nation’s journey to recovery, as led by President Duterte,” said Secretary Eduardo del Rosario of the Department of Human Settlements and Urban Development (DHSUD) and Chairman of the 11-member Pag-IBIG Fund Board of Trustees.
With the Pag-IBIG Board’s approval of the promo rates on July 9, Pag-IBIG Fund CEO Acmad Rizaldy Moti said that the special rates shall take effect immediately and shall be enjoyed by incoming home loan borrowers until December 29, 2020. “We review our rates regularly and have never repriced it upward under the Duterte administration. Our ever-improving quality of portfolio has allowed us to keep the rates low under our Risk-Based Pricing Model. But this time, we are offering something special. In consideration of the impact of the pandemic on the livelihood of our members, we reduced our home loan rates by as much 100 basis points for the next six months because we want to help members who are thinking of buying a home to take advantage of our lower-than-lowest rates. Even amid the pandemic, now is the best time to buy a home with a Pag-IBIG Housing Loan” Moti said.