As a result of strengthened fiscal measures, sound investments and reforms in collection, the Home Development Mutual Fund (HDMF) or Pag-IBIG Fund has further cut its interest rates for housing loans.
The new housing loan rates are as follows: 6.5% for a three-year fixed-pricing period, 7.27% for five years, 8.035% for 10 years 8.585% for 15 years, 8.8% for 20 years, 9.05% for 25 years, and 10% under a 30-year fixed-pricing period.
According to Pag-IBIG Fund President Darlene Berberabe, the new rates were implemented last June 1, 2015. Berberabe attributed the rate reduction to improved collections on housing loans which reached P33.9 billion last year and P8.8 billion during quarter 1 of 2015.
“Pag-IBIG is regularly reviewing its policies and programs so that the stakeholders, the Pag-IBIG members in particular, will get more benefits from their membership with Pag-IBIG. Our objective is to make Pag-IBIG Fund more relevant to the everyday lives of Pag-IBIG members,” Berberabe said.
Pag-IBIG has also issued new guidelines on housing loans, allowing qualified members to avail of multiple Pag-IBIG loans, with total loan value not exceeding P6 million and provided the borrowing member is able to afford the monthly amortization.
Furthermore, a Pag-IBIG member who is named as a co-borrower of an existing loan will now be allowed to apply for a new housing loan with the outstanding balance of his existing loan included in the computation of the total loan value.
A Pag-IBIG member who is named as a co-borrower of an existing loan will also be allowed to apply for a new housing loan under these guidelines, but the outstanding balance of his existing loan will be included in the computation of the total loan value.
“We take seriously the comments and suggestions of our stakeholders and the Pag-IBIG members. This is very important to us because it is through this listening process we are able to know how effective the programs we introduce are and from there, we can make adjustments if need be. So in the end, Pag-IBIG is able to provide programs that suit the needs of Pag-IBIG members,” Berberabe further said.
The reduced interest rates of Pag-IBIG are applicable to loans under the End-User Financing (EUF) Program where a qualified Pag-IBIG member could avail of a maximum loan of P6 million.
This benefit also extends to existing borrowers whose accounts are already due for repricing, depending on the repricing period they have chosen at point of housing loan application.