The Pag-IBIG Fund has lowered interest rates on its housing loans in line with the government's efforts to make homeownership more affordable for Filipinos.
"We are keenly aware of the need to provide affordable housing to our members who dream of having their own homes," Pag-IBIG Chairman Jose Rizalino Acuzar said in a statement on Tuesday.
The interest rate for a three-year repricing period was lowered to 6.25 percent per annum from 6.375 percent. Those for repricing periods of five, 10, 15, 20, 25 and 30 years were reset to 6.5 percent, 7.125 percent, 7.75 percent, 8.50 percent, 9.125 percent and 9.75 percent, respectively, from 6.625 percent, 7.375 percent, 8.00 percent, 8.625 percent, 9.375 percent and 10.00 percent.
The new rates took effect starting this month.
The Pag-IBIG chief executive officer said the agency was able to lower its home loan rates due to its solid financial position, collection performance and a high ratio of successful loans.
"With our performing loans ratio at a high 92.53 percent and collections from both membership savings and loan payments at a record high, we are able to effectively fund the high demand for our home loans without the need to borrow from the market," she said.
Pag-IBIG kept the home loan rate of 5.75 percent for its one-year repricing period. The special rate for home loans offered through the Affordable Housing Program for minimum-wage earners was also retained at 3 percent.
Source: Manila Times