Pag-IBIG Fund grants 5,074 socialized home loans to low-wage earners in Q1 2021, up by 25%
Pag-IBIG Fund granted socialized home loans to 5,074 members from the minimum-wage and low-income sectors totaling P2.2 billion in the first three months of 2021 despite the continuing pandemic, according to the top executives of the agency.
Socialized home loans make up about 25% of the 20,712 total number of loans financed by the agency in the first quarter of 2021. The amount, meanwhile, is equivalent to 11% of the P20.94 billion it disbursed. Amid the health crisis, the number of socialized home loans granted grew by 25% from the 4,045 loans extended during the same period last year, while the amount increased by 34%.
“In the wake of the pandemic, Pag-IBIG Fund’s Affordable Housing Program has become the means for minimum-wage and other low-income workers to achieve their dream of homeownership. The program’s lowest rates and longest term allow them make buying a home within their reach. Offering affordable home financing to our members is our way of adhering to President Rodrigo Roa Duterte’s directive to government institutions to provide programs that serve the needs of the underserved sector, especially during these challenging times,” said Secretary Eduardo D. del Rosario, Chairperson of the Department of Human Settlements and Urban Development (DHSUD) and the 11-member Pag-IBIG Fund Board of Trustees.
With Pag-IBIG Fund’s Affordable Housing Program (AHP), members can borrow up to P580,000 to buy socialized house and lot packages, or up to P750,000 for socialized condominium units at a special rate of 3% per annum.The AHP is specifically made for members earning not more than P15,000 per month within the National Capital Region, and not more than P12,000 per month for members outside of NCR, who intend to buy socialized housing units. This loan program also features a 100% loan-to-value ratio allowing borrowers to purchase homes without spending for equity.
Pag-IBIG Fund Chief Executive Officer Acmad Rizaldy P. Moti said the agency has been offering the special 3% rate under the AHP since May 2017 and has kept the subsidized rate since, thanks to Pag-IBIG Fund’s tax-exempt status provided under Republic Act No. 9679.
“Because of our Charter, Pag-IBIG Fund can afford to offer the lowest rates for home loans of minimum and low-wage workers. And, with President Duterte recently signing into law the CREATE bill, the tax-exempt status of Pag-IBIG Fund has been maintained. What this means to our members from the minimum-wage and low-income sectors is that they can continue to enjoy these lowest rates. To put things into perspective, with our Affordable Housing Program, qualified borrowers will only pay around P2,445 per month for a home loan worth P580,000 - which is almost equivalent to the price of rent. This low amortization allows more of our members to gain homeownership, as we recognize that the home is the safest place to be during these difficult times. We look forward to helping more low-income members become homeowners in the months to come,” said Moti. (END)
Pag-IBIG Fund home loan releases reach P20.94B in Q1 2021; up 33% despite pandemic
Pag-IBIG Fund released P20.94 billion in home loans in the first quarter of 2021 despite the pandemic, an increase of 33% or P5.17 billion compared to the P15.77 billion released during the same period in 2020, its top officials announced Tuesday (April 13).
“We are happy to report that our home loan releases in the first three months of 2021 have increased compared to the same period last year. This increase in our home loan releases means that more Filipino workers are being helped by Pag-IBIG Fund to secure their own homes, which is very important at this time of pandemic. We recognize the role we play in helping keep our members safe in their own homes, as we heed President Rodrigo Duterte’s call for government agencies to provide social benefits to more Filipinos, especially during these challenging times,” said Secretary Eduardo D. del Rosario, who heads the Department of Human Settlements and Urban Development and the 11-member Pag-IBIG Fund Board of Trustees.
Del Rosario added that the P20.94 billion in home loans during the first quarter of the year enabled 20,712 members to acquire their own homes. Out of the total amount, P2.2 billion were released as socialized home loans for the benefit of 5,074 Pag-IBIG Fund members belonging to the minimum-wage and low-income sectors.
Meanwhile, Pag-IBIG Fund Chief Executive Officer Acmad Rizaldy P. Moti noted that even if measured against the period prior to the implementation of community quarantines, there was still an increase in home loans. The agency released P15.49 billion in home loans from January 1 to March 15 this year, an increase of P546.97 million or 3.7% from the P14.94 billion released in the same period in 2020 when strict community quarantines in Metro Manila and other parts of Luzon were yet to be implemented. He further expressed optimism that the numbers will continue to rise, especially as the economy continues to reopen.
“From September to December last year, our home loan releases were close to ‘pre-pandemic’ levels. We released more than P6 billion to P7 billion in home loans every month during those months, with December loan releases reaching P12 billion - the highest amount released for a single month in PagIBIG Fund’s history. We are glad that our momentum in the last quarter of 2020 carried over to first quarter of 2021, despite the challenges caused by the pandemic. In fact, home loan releases in the first quarter of 2021 is 22% higher compared to our loan releases in the first quarter of 2019, which eventually turned out as our best year ever when annual home loan releases amounted to P86.7 billion. We anticipate that our momentum will continue in the succeeding quarters, barring any major catastrophic event, so we help more members become homeowners,” Moti said. (END)
Pag-IBIG posts P31.18B net income in 2020; Members earn 5.62% dividend rate on Regular Savings, 6.12% on MP2
Pag-IBIG Fund posted a net income of over P30 billion in 2020 for the fourth consecutive year despite the economic slowdown caused by the pandemic, its top executives announced during the 2020 Pag-IBIG Fund Chairman’s Report held online Wednesday (March 03).
“I’m happy to report that our net income reached P31.18 billion last year, marking the fourth consecutive year that Pag-IBIG Fund’s net income surpassed the P30-billion mark. Pag-IBIG Fund’s strong showing despite the pandemic is a testament of how well the Filipino workers’ fund is managed. And, as we continue to support the call of President Rodrigo Duterte for government agencies to provide more social benefits to more Filipinos, we are giving back P29.40 billion, around 94% of our net income, to members in the form of dividends,” said Secretary Eduardo D. del Rosario who heads the Department of Human Settlements and Urban Development and the 11-member Pag-IBIG Fund Board of Trustees.
Under Pag-IBIG Fund’s charter, the agency is required to declare at least 70% of its annual net income as dividends which shall be credited proportionately to its members’ savings. However, the Pag-IBIG Fund Board approved to declare 93.68% of its earnings – more than what its charter requires and the highest in the agency’s history– to extend the most benefit to its members especially during these difficult times, del Rosario added.
With this move by its board, del Rosario also stated that members will enjoy a higher-than-expected return on their Pag-IBIG savings. He said that the year 2020 dividend rate for the Pag-IBIG Regular Savings shall be at 5.62%, while the Modified Pag-IBIG 2 (MP2) Savings shall be at 6.12%.
“Again, we have achieved yet another ‘highest ever’ in 2020. With dividends payout set at 93.68% of our P31.38 billion net income exclusive of net foreign exchange loss, it’s the highest dividend payout ratio in Pag-IBIG’s history. It’s also the highest dividend payout ratio our Pag-IBIG Fund Board can declare while still maintaining our target Capital Adequacy Ratio. Considering the challenges that we faced last year, achieving over P31 billion in net income is an achievement in itself. With such earnings and the dividend approval by our Board, we are extending the most benefit to our members without risking the strong financial standing of the Fund, especially during these difficult times,” said Pag-IBIG Fund Chief Executive Officer Acmad Rizaldy P. Moti.
According to Moti, Pag-IBIG Fund maintains a Capital Adequacy Ratio (CAR) of 15%, which is higher than the 10% threshold set by the Bangko Sentral ng Pilipinas (BSP) for the banking industry. Even if Pag-IBIG is not regulated by the BSP, Moti said that the agency voluntarily maintains a high CAR which includes a buffer to account for current economic challenges, to protect the funds of its members and to maintain the agency’s financial stability.
He also thanked borrowers who continued to pay their loans last year, despite the economic slowdown. In 2020, home loan payments reached P46.65 billion, while cash loan payments totaled P56.17 billion enabling the agency maintain its strong fiscal position.
“We would like to thank our borrowers for continuously honoring their loan obligations despite the pandemic. The strong financial standing of Pag-IBIG is a good sign because this allows us to continue funding our members’ home loans and cash loans, especially now when these are needed the most. By fulfilling their obligations, they are helping Pag-IBIG Fund bring needed service to other members, while continuing to stimulate the housing industry and the economy. As we brave the months ahead, we assure our members and stakeholders that we will remain a reliable institution that they can count on, which is what we have been doing every year in the last 40 years,” Moti added. (END)
Pag-IBIG Fund finances homes of 16,975 low-wage workers in 2020
Pag-IBIG Fund financed socialized housing loans of 16,975 members belonging to the minimum-wage and low-income sectors in 2020 despite the pandemic, its top executives said on Thursday (February 11).
Socialized housing loans represent 27% of the 63,750 units financed by the agency, and amount to P7.18 billion out of the P63.75 billion in total housing loans it released last year.
“Pag-IBIG Fund’s Affordable Housing Loan Program offers the lowest rate and longest term for minimum and low-wage workers. Even as the pandemic posed numerous challenges last year, we were still able to provide many of our workers belonging to this sector the means to acquire their own homes, under the most affordable terms. This is our way of adhering to President Rodrigo Roa Duterte’s directive to government institutions to provide programs that serve the needs of the underserved sector,” said Secretary Eduardo D. del Rosario, Chairperson of the Department of Human Settlements and Urban Development (DHSUD) and the 11-member Pag-IBIG Fund Board of Trustees.
Pag-IBIG Fund’s Affordable Housing Program offers a subsidized rate of 3% per annum for members earning not more than P15,000 per month within the National Capital Region, and not more than Php 12,000 per month for members outside of NCR, who will buy socialized housing units. Under the program, members can borrow up to PHP 580,000 to buy socialized houses, or up to PHP 750,000 for socialized condominium units, at 3% per annum, a special rate provided to minimum and low-wage workers since May 2017.
The loan program also features a 100% loan-to-value ratio allowing borrowers to enjoy equity-free purchase of housing units.
According to Pag-IBIG Fund Chief Executive Officer Acmad Rizaldy P. Moti, the agency is able to keep offering the lowest interest rate in the market because of its tax-exempt status provided under Republic Act No. 9679.
“Pag-IBIG Fund is able to subsidize the low interest rate that minimum and low-wage workers enjoy under our Affordable Housing Loan Program being a tax-exempt agency, as prescribed under our charter. We are happy that the new CREATE bill seeks to continue to preserve this tax-exempt status of Pag-IBIG Fund, and thus allow us to continue offering these subsidized rates. We are grateful to our lawmakers who share our vision to make homeownership attainable, especially for the underserved sector. And, as we continue to face challenges imposed by the pandemic, we shall continue doing our best to help more low-income workers secure their own homes where they can be safe,” said Moti. (END)
Pag-IBIG home loan releases hit record-high P12.11B in December amid the pandemic
Pag-IBIG Fund home loan releases hit a record-high in December as disbursement reached P12.11 billion despite the economic downturn caused by the Covid-19 pandemic, top officials of the agency announced on Wednesday (Jan. 27). This amount is P640 million higher, or a six percent increase, from the previous record of P11.47B that was set in December 2019.
“Our home loan takeouts in December is the highest for a single month in Pag-IBIG Fund’s history. Because of it, we were able to finance the acquisition of 12,275 homes for our members in December alone, which is also a record-high. Amid the challenges, Pag-IBIG has provided homes to more members during the pandemic, aiding in the government’s efforts led by President Duterte, to keep Filipino families safe at home,” said Secretary Eduardo D. del Rosario, who heads both the Department of Human Settlements and Urban Development (DHSUD), and the 11-member Pag-IBIG Fund Board of Trustees.
For year 2020, Pag-IBIG Fund released P63.75 billion in home loans allowing 63,750 members to acquire their own homes. Out of the total amount, 11 percent or P7.1 billion were released as socialized home loans for the benefit of 16,975 Pag-IBIG Fund members who belong to the minimum-wage and low-income sectors, del Rosario added.
Meanwhile, Pag-IBIG Fund Chief Executive Officer Acmad Rizaldy P. Moti expressed optimism that the numbers will continue to rise especially as the economy has reopened.
“From September to December, our home loan releases were close to ‘pre-pandemic’ levels. We released more than P6 billion to P7 billion in home loans every month, reaching its peak in December when releases reached over P12 billion. The year 2020 may not have been record-breaking in terms of numbers, but it was a story of grit and resiliency as we were able to bounce back quickly,” Moti said.
He said that Pag-IBIG Fund was poised to achieve another milestone year in 2020 as the combined home loan releases in January and February amounted to P12 billion, growing 17 percent compared to the same period in 2019. But as expected, home loan numbers started to decline in March when strict community quarantine measures were imposed to curb the spread of Covid-19. Home loan releases dipped to P3.8 billion in March and P883 million in April. But, as restrictions were eased, home loan figures started to recover in as early as May when disbursements jumped to P1.2 billion and rose even higher to P2.9 billion in June. Loan releases continued to climb in the second half of 2020. And by the end of the third quarter, home loan releases had already recovered.
“Looking at the bigger picture, the improvement in numbers does not only mean increased homeownership among Filipinos. It also means that Pag-IBIG Fund is able to take part in ensuring the safety of our members and their families, especially during this time of a pandemic. Rest assured that as 2021 unfolds, we will continue to be our members’ reliable partner as we all journey to full recovery,” Moti added.
In total, Pag-IBIG Fund approved P84.53 billion in home loans to finance the acquisition of 80,748 homes last year. Of this, the amount of P20.78 billion represents approved home loan applications pending for release, the proceeds of which are ready for disbursement upon submission by borrowers of post-approval requirements.
Pag-IBIG Fund members save record-high P13.3B in MP2 amid pandemic, up 11% in 2020
Despite the uncertainties caused by Covid-19 last year, Pag-IBIG Fund members turned to the agency’s MP2 Savings and collectively saved over P13 billion, setting a new record for the amount saved voluntarily by members under the program in a single year.
“We are happy to report that despite the impact of the pandemic to our economy last year, the amount saved by our members in the Pag-IBIG MP2 Savings last year surpassed P13 billion. This is the highest-ever amount saved by our members in the program so far. This shows the significant trust that our members have in Pag-IBIG Fund, that we shall manage their hard-earned peso prudently. This will also go a long way in helping us serve more members by providing funds for their home loans and cash loans, all in line with President Rodrigo Roa Duterte’s directive to help uplift the lives of more Filipinos especially during these difficult times,” said Secretary Eduardo D. del Rosario, Chairperson of the Department of Human Settlements and Urban Development and the 11-member Pag-IBIG Fund Board of Trustees.
He said that as of 2020, a total of 338,248 members currently save in the MP2 Savings. “These members saved, on average, P3,270 per month in their MP2 Savings last year. This means that it’s the typical Filipino worker who’s diligently saving and entrusting their hard-earned money with Pag-IBIG Fund,” del Rosario added.
The MP2 Savings is Pag-IBIG Fund’s voluntary savings program that has a 5-year maturity period and a minimum savings requirement of only P500. Made available to members in 2010, the savings program has seen phenomenal growth over the last 5 years, mainly due to the higher dividends it offers compared to the agency’s Regular Savings program. The agency expects to declare the MP2 Savings dividend rate for 2020 within the first quarter of the year.
“The continued growth of our MP2 Savings program is remarkable. It was only in 2017 when collections from our MP2 Savings surpassed the P1 billion-mark, which was then a historic feat. And by the end of 2020, in a span of just three years, MP2 Savings has now reached P13.28 billion. This surpasses the previous record-high of P12.01 billion saved by our members in 2019, achieving an 11% growth amid the pandemic. We thank our members for their continued support and enduring trust that despite the challenging times, they opted to save voluntarily in our MP2 Savings Program. That is why they can expect nothing less than our Lingkod Pag-IBIG brand of service, Tapat na Serbisyo, Mula sa Puso, from us,” said Pag-IBIG Fund CEO Acmad Rizaldy P. Moti. (END)