VICE President Noli de Castro has announced another adjustment in Pag-ibig Fund housing loan interest rates, making the monthly amortizations for its most popular loan package even more affordable.
The interest rate for loans up to P400,000 has been reduced from seven percent to only six percent per annum.
Interest rate for loans worth over P400,000 up to P750,000 is seven percent, and 10.5 percent for loans over P750,000 up to P2 million.
As a result of this rate cut, the monthly payment for principal and interest for a P400,000 loan will go down from P2,661.21 to P2,398.20 at the maximum payment period of 30 years.
Low-income
The Vice President said the bulk of housing loans taken out by Pag-ibig are those worth P400,000 and under.
“The market for Pag-ibig loans are mostly the low income earners, so this latest interest rate adjustment will benefit them,” he said. “In these difficult times, we want more Pag-ibig members to have home ownership as an affordable option to renting,” he added.
De Castro said the rate reduction dovetails the Fund’s commitment to allocate P82 billion for housing and multi-purpose loans this year as its contribution to the go-vernment’s economic stimulus package.
“With this, we hope to attract more borrowers. This will help keep the housing market vibrant, generate business activity in related industries, and create much-needed jobs for our workers,” he said.
In support of the Fund’s higher allocation for shelter financing, de Castro has directed the Pag-ibig Fund to review its housing loan application process and find ways to further streamline it.
De Castro also assured members that Pag-ibig will continue to invest at least 70 percent of its investible funds in housing even with the Fund’s charter change.
This is in reference to the recently approved Senate Bill that aims to strengthen the Pag-ibig Fund by amending its charter to restore its exemption from income taxes and to empower its Board of Trustees to adjust contribution rates, among other things.
“Housing will continue to be Pag-ibig’s core service to its members, and its main contribution to our country’s economic growth,” he said. (PR)
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