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STATE-RUN Pag-ibig Fund saw housing loan takeout in Visayas grow 15 percent in the first half of this year, an indication of a robust housing market in the region.

Housing loans availed by its Visayan members from January to June totaled P4.49 billion, accounting for 12 percent of the nationwide loan takeout.

This translated to a total of 4,250 housing units, up 23 percent from 3,461 in the same period last year.

Cebu, an economic hub in the Visayas, is home to several residential projects as investors continue to expand in the property industry that has been driving the metro’s economic growth.

Marilene Acosta, Pag-ibig Fund’s deputy chief executive for home lending operations, said the loan takeout for socialized housing also totaled P343.9 million, translating to 811 units in the first half, making up eight percent of the total socialized housing loan takeout nationwide.

Pag-ibig Fund Chief Executive Officer Acmad Rizaldy Moti pointed out that the agency remains to have the lowest interest rate for home loans in the market.

Pag-ibig Fund maintained its subsidized rate of three percent per year under its Affordable Housing Program offered to members earning not more than P15,000 a month for those within the capital region or those earning not more than P12,000 a month for those outside of the capital.

Moti said the high increase in the collection of members’ savings helped keep the agency’s lending rates low.

The rate for this loan program is the lowest in the market and has been in place since May 2017.

Pag-ibig Fund also maintained its interest rates for loans up to P6 million under its Regular Housing Loan Program, where members may secure loans at a rate of as low as 5.375 percent per year.

In the first half of 2019, collection of members’ savings improved 27 percent year-on-year to P23.40 billion, which is the highest amount saved by members from January to June.

“We see no reason so far, to increase our home loan rates because the continuing improvements in our collection efficiency boost our performing loans ratio,” Moti said.

Member savings collections have also grown 27 percent while housing loan payment collections increased 12 percent.

“All these mean that we are able to effectively fund the high demand for our home loans without the need to borrow from the market,” Moti said.

“The strong inflow of funds and our ability to maintain quality loan portfolios directly benefit our members because we can continue to offer them the lowest lending rates possible and still declare above-market dividend payouts,” he added.

Moti assured the members that the agency’s strong financial standing would continue to allow it to maintain its offering of low interest rates for the rest of 2019.

Source : https://www.sunstar.com.ph/article/1822751/Cebu/Business/Housing-loan-takeout-in-Visayas-grows-15

Tags: Pag-ibig Fund Housing Loan Loan