The Coronavirus Disease 2019 (COVID-19) pandemic has been largely associated to a lot of negative things. From the stopping of the economy, the closing of businesses – to the losing of jobs of millions of Filipinos.
On the brighter side, the state housing Pag-IBIG or Home Development Mutual Fund (HDMF) has a surprise to us. The Philippine government made the announcement that their members can get Pag-IBIG housing loan promos up until the end of 2020.
Read: COVID Loans for Small Businesses, Released by Different Government Departments
Lower to Lowest Interest Rates
Secretary Eduardo del Rosario, the Secretary of the Department of Human Settlements and Urban Development (DHSUD) and Chairman of the Pag-IBIG Fund Board made the approval for the Pag-IBIG Housing Loan promos for members. As per him, these special rates would help urge people to make the housing industry active again.
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."
How low are the promos and the interest rates, you may ask? As per the department, the special low interest rate would be at 4.985 percent. The regular and the normal rate was at 5.375 percent for the one (1) year of repricing; this was also from the 6.375 percent per year for the three (3) year repricing period.
Read: How to Apply for Pag-IBIG Fund Multi-Purpose Loan
This is drastically low compared to other options — but it's not going to last forever.
Is this applicable to the subsidized home loan?
When it comes to the subsidized home loan or the Affordable Housing Program (AHP), the rates remain the same. As per the HDMF, it remains at 3 percent per year.
Presidential Spokesperson Harry Roque said that these special interest rates are the lowest in the industry. Whatever housing loan there is, this is the lowest.
Ito po ang pinakamababang rate sa ilalim ng regular housing loan program at available po ito sa Pag-IBIG members hanggang sa katapusan ng taon."
Read: A Guide on How to Process the Pag-IBIG Housing Loan
In Translation: This is the lowest rate under the regular housing loan program; this is available for all eligible Pag-IBIG members until December of this year.
All members who are showing interest should take this opportunity; this is because it only lasts until the end of this year.
Contribution to the nation
Members can apply to the Pag-IBIG Housing Promo and they wouldn't just get the house at a low rate, they could also help in the contribution for the betterment of the Philippine economy.
This is a win-win situation because our members get to take advantage of these home loan rates, while the purchase of their homes will help generate more jobs to get our economy back on track. This then, is our contribution to our nation’s journey to recovery, as led by President (Rodrigo) Duterte. This is another proof that Pag-IBIG Fund is pro-active in looking after the welfare of its member-borrowers. This promotional scheme will be huge for those who are planning to own their dream homes."
Read: Here's How You Can Apply For The Pag-IBIG Calamity Loan Online
However, Acmad Rizaldy Moti, the CEO of the Pag-IBIG Fund said that these new Pag-IBIG Housing Loan Promos would be applicable for the three-year repricing period only if the existing member's account is active during the first (1st) and the second (2nd) anniversary for the promotional rate.
Non-active accounts, on the other hand, would be reverted to the risk-based pricing.
We review our rates regularly and have never repriced it upward under the Duterte administration. Our ever-improving quality of the portfolio has allowed us to keep the rates low under our Risk-Based Pricing Model. But this time, we are offering something special."
This would be the perfect time to eye on the properties you plan on acquiring; the promos offered by the state housing development fund lasts! It's better to secure them now than to just lose them again later!
Read: Three-Month Moratorium to All Loans, Pag-IBIG Fund
Income loss
In addition to that, the state housing development fund was able to project a value of P50 billion for the range of July up to December 2020; and that the loss income over the next three (3) years would be at P1.376 billion. This might be a huge loss for them but they still decided to help their fellow countrymen.
In the end, they still chose to provide promos or lower interest rates than the regular rate that would be paid for.
Read: Different Labor Groups Pushing For the Pag-IBIG Fund Contribution Hike
What do you think about the new Pag-IBIG Housing Loan Promos that they are offering? Do you think that this can help the economy in terms of the help they need in strengthening and getting back up in the economy?
Source/s: The Philippine News Agency
does this program applicable to the newly approved housing program?can this be recompute the interest rate to the said promo?4.985 percent?.