Pag-IBIG rolls out special 3 percent loan rate under 4PH

Pag-IBIG Fund is offering a special subsidized interest rate of three percent per annum for the first five years of housing loans under the Expanded Pambansang Pabahay para sa Pilipino (Expanded 4PH) Program.

The special rate is available to eligible members and overseas Filipino workers for the purchase of socialized housing units – which now include house-and-lot units, condominium units and Pag-IBIG acquired assets.

The initiative supports President Marcos’ directive to expand access to affordable and dignified housing, in line with the administration’s Bagong Pilipinas vision.

“We are pleased to report that Pag-IBIG Fund has once again stepped forward in its commitment to helping more Filipinos secure dignified homes,” said Jose Ramon Aliling, Secretary of the Department of Human Settlements and Urban Development (DHSUD) and chairperson of the Pag-IBIG Fund board of trustees.

“Together with the enhancements under the Expanded 4PH Program – which now covers both vertical and horizontal housing developments – Pag-IBIG Fund’s wider home financing options ensure that more Filipinos can finally achieve homeownership.

This is our solid commitment to President Marcos’ vision of providing decent shelter through a sustainable housing program under the Bagong Pilipinas banner,” Aliling said.

Aliling also cited the support from the private sector, noting that developers have committed to building more than 250,000 socialized housing units nationwide under the Expanded 4PH Program, significantly accelerating the government’s housing efforts.

Under the Pag-IBIG Housing Loan for the Expanded 4PH Program, first-time homebuyers – particularly those earning less than P47,856 per month in the National Capital Region and less than P34,686  outside NCR – may avail of the subsidized three percent interest rate for the first five years of the loan. All overseas Filipino workers, regardless of income, also qualify for the special rate.

The loan may be used to purchase quality socialized house-and-lot units and condominium units under accredited Expanded 4PH projects, priced up to P850,000  and P1.8 million, respectively.

It may also be used to purchase Pag-IBIG acquired assets with net selling prices that fall within these ceilings.

The program further offers additional financing of up to P100,000 for home improvements, such as utility connections and home fixtures, and provides a 100-percent loan-to-value ratio, meaning borrowers are not required to provide cash equity.

Pag-IBIG Fund chief executive officer Marilene Acosta said the agency’s ability to offer low interest rates stems from its strong collection efficiency, eliminating the need for external borrowing.

She added that the initiative aligns with Pag-IBIG Fund’s 10-year plan to deliver double-digit dividends on members’ savings while allocating half of its housing portfolio to loans with a three-percent interest rate through efficient asset management.

Source: Philstar

Can We Execute a Joint Will?

When planning for the future, many couples naturally consider the idea of simplifying things—including their wills. One common question that arises is: “Can we execute a joint will?” The short answer is: it depends on your country’s laws, but in most places, joint wills are possible but generally discouraged. Let’s explore why.

What Is a Joint Will?

A joint will is a single legal document created by two or more people, typically spouses or partners, outlining how their assets will be distributed after both of them pass away. It usually states that when one person dies, the surviving partner inherits everything, and when the second person passes, the assets go to the designated beneficiaries (like children or relatives).

Are Joint Wills Legal?

In many countries, including the Philippines, the United States, and the UK, joint wills are generally discouraged and sometimes even considered invalid, depending on how they're structured. Instead, what is more commonly allowed is a mutual will or mirror wills, where each partner creates a separate will with identical terms.

For example:

• Philippines: Joint wills are not valid under Philippine law. Article 818 of the Civil Code specifically prohibits joint wills, even if executed abroad by Filipinos.

• United States: Some states allow joint wills but courts often discourage them due to potential complications.

• United Kingdom: Joint wills are technically allowed but rarely used in modern practice due to legal and practical downsides.

  
  

Why Are Joint Wills Discouraged?

Lack of Flexibility

Once one partner dies, a joint will usually cannot be changed—even if circumstances change, like remarriage, estrangement from beneficiaries, or new grandchildren.

Legal Complications

If poorly drafted, joint wills can lead to court battles, misunderstandings, and disputes among surviving family members.

Better Alternatives Exist

Most estate lawyers recommend creating mirror wills or mutual wills, which are separate documents but can reflect the same intentions. These are more flexible, legally sound, and easier to amend if needed.

What’s the Best Option?

• Mirror Wills: Each partner creates a separate will leaving everything to the other, then to agreed beneficiaries.

• Mutual Wills (with contract): Legally binding wills that cannot be changed after one partner dies, but with clearer enforceability than joint wills.

• Living Trusts: In some cases, a trust may offer more flexibility and privacy for asset distribution.

  
  

Final Thoughts

While the idea of a joint will sounds simple and romantic—“one will for both of us”—the reality is that it can lead to more problems than solutions. In most jurisdictions, joint wills are either invalid, problematic, or outdated in modern estate planning.

💡 Tip: Always consult with a qualified estate lawyer familiar with the laws of your country or region. They can help you create a legally sound and flexible estate plan that honors your wishes without unnecessary risks.

Source: Ziggurat Real Estate

Protecting every saver

How deposit insurance can be a lifeline during unforeseen circumstance.

Waking up to a home flooded up to hip level or reporting for work only to find out you have been let go by the company are scenarios one would wish were just a bad dream. For Karla and Paulo, however, this was their reality when Typhoon Ondoy and the global pandemic happened, respectively. Faced with the sudden dilemma, they found themselves asking: How do I begin again?

Emergency situations such as natural calamities and virus outbreaks strike without warning. Having a savings account — or better yet an emergency fund, can spell the difference between feeling helpless and having peace of mind.

Karla and her family lost almost all of their belongings, but thankfully the money she tucked in the bank was left unharmed. “Buti na lang may savings ako. Maliit man o malaki na sakuna, importante na ready ka, na may savings ka sa bangko para may mahuhugot ka. Hindi mo need maghintay ng tulong sa iba dahil kaya mong tulungan ang sarili mo at ang pamilya mo (It was a good thing I had my savings in a bank. Whether it is a small or big calamity, it is important that you are ready, that you have savings in the bank that you can use. That way, you won’t need to wait on others for help because you are capable of helping yourself and your family),” Karla recalled with a sense of relief.

This sense of security in the banking system is exactly what the Philippine Deposit Insurance Corporation (PDIC) aims when fulfilling its twin public policy objectives of protecting depositors and promoting financial stability. As the state deposit insurer, the PDIC provides a financial safety net through deposit insurance to depositors of banks up to the maximum coverage amount set by law.

In Paulo’s case, his unforeseen emergency was brought about by COVID-19. The pandemic not only taught him that nothing is permanent but also stressed the importance of saving money in banks. As the family’s breadwinner, he immediately needed to find another way to earn a living after being laid off. That was when he tried delivery work.

“Dati wala akong effort para mag-ipon sa bangko. Lahat ng sinasahod ko napupunta agad sa mga bilihin at mga bayarin. Nung nawalan ako bigla ng trabaho, dun ko na realize na ang hirap pala pag wala kang naitabi. Kaya ngayon, kahit pa P10 o P20 lang na extra, kapag pinagsama-sama malaking dagdag na rin para sa emergency fund (I used to not make an effort to save in banks. What I earn went straight to buying the necessities and paying the bills. When I suddenly lost my job, that was the only time I realized just how hard it is when you have nothing saved. So now, I save even if it is just an extra P10 or P20 to add to the emergency fund),” he said.

According to a report by the Bangko Sentral ng Pilipinas (BSP), as of September 2024, more than 450 cities and municipalities in the country remain unbanked. This means that many Filipinos may still be unaware of the benefits of saving in banks and having their hard-earned money protected by the PDIC.

To sustain the protection the PDIC provides to depositors, it continuously strengthens the Deposit Insurance Fund (DIF), the funding source of deposit insurance built primarily through the collection of semi-annual assessments from banks.

Starting March 15, 2025, the DIF guarantees that deposits up to the maximum deposit insurance coverage (MDIC) of P1 million per depositor per bank are protected. This is double the previous MDIC of P500,000, which was last adjusted in 2009.

This increase in the MDIC not only demonstrates the stability of the DIF but also ensures more deposit accounts are insured, thus reinforcing public trust and confidence in the banking system. Hopefully, more individuals, like Karla and Paulo, can confidently choose to save in banks, knowing that the PDIC is their ally in safeguarding their savings and the welfare of their family during challenging times.

Source: Business World