Pag-Ibig creates more loan brackets
THE HOME DEVELOPMENT Mutual Fund (Pag-Ibig) yesterday announced more adjustments to its housing program, this time creating additional housing loan brackets with lower interest rates.
Vice President Noli de Castro, who is chair of the Housing and Urban Development Coordinating Council (HUDCC) and the Pag-Ibig board of trustees, said the rate adjustments were consistent with the redefined housing packages set by the HUDCC.
The new Pag-Ibig housing loan interest rate structure retains the 6 percent rate for loans up to P400,000, and 7-percent for loans over P400,000 up to P750,000.
Interest rates have been slashed from 10.5 to only 8.5 percent for loans over P750,000 up to P1 million, and to 9.5 percent for loans over P1 million to P1.25 million.
Interest for loans from P1.25 million to P2 million remains at 10.5 percent.
Along with the latest rate adjustment, the Pag-Ibig Board also approved the increase in maximum loanable amount to P3 million, at an interest rate of 11.5 percent per annum for loans starting at over P2 million.
The new rates took effect on April 1.
De Castro said the latest amendments to the Pag-Ibig housing loan program was meant to make the program more affordable to members, especially workers in highly urbanized areas whose housing needs often range from more than P750,000 up to P1 million.
Likewise, with the Board's approval of raising the loan ceiling to P3 million, Pag-Ibig will be able to meet the home financing needs of members belonging to the middle -income earners.
"This shoud give Pag-Ibig members a wider range of choices in buying a house," he said.
Sources: Philipinne Daily Inquirer
April 3, 2009