VICE President and Chairman of the Housing and Urban Development Coordinating Council (HUDCC) and the Home Development Mutual Fund (Pag-IBIG Fund) Board of Trustees,  today  announced further adjustments to its end-user financing program, this time creating additional housing loan brackets with corresponding lower interest rates. The rate adjustments are aligned with the redefined housing packages set by the HUDCC.

The new Pag-IBIG housing loan interest rate structure retains the 6%-rate for loans up to P400,000, and 7% for loans over P400,000 up to P750,000. 

Interest rates have been slashed from 10.5 percent to only 8.5% for loans over P750,000 up to P1million, and to 9.5% for loans over P1 million to P1.25 million.

Meanwhile, interest for loans over P1.25 million to P2 million remains at 10.5%. 

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% per annum for loans starting at over P2 million. 

De Castro said the latest amendments in the Pag-IBIG housing loan program are intended 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 1 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 should give Pag-IBIG members a wider range of choices in buying a house,” he said.

Over the last two years, the Fund has implemented significant improvements in its end-user financing program.   In 2007, Pag-IBIG has reduced the interest rates for loans over P300,000 to P750,000 from 10.5% to 7%.  Earlier this year, the socialized housing bracket was expanded to cover loans of up to P400,000. 

With the new changes taking effect April 1, Pag-IBIG member-borrowers can look forward to more value for their money as well as savings especially at this time of economic difficulties.  “The savings given the lower monthly amortizations should convince Pag-IBIG members that buying their own home is a more practical alternative to renting,” De Castro added.

Members who avail of a P1 million housing loan stand to save 15.94% per month with amortizations of only P7,689.13 (covering principal and interest) over a 30 year period, compared to P9,147.39 under the old rate  of 10.5%.

Year-on-year figures show the Pag-IBIG Fund is able to maintain the growth in its housing loan takeout.  From P4.59 billion, the Fund recorded a P5.83 billion total takeout from January to February of the current year, representing a 27% increase.

“The demand for housing, especially from the low and middle-income earners, continues to be strong despite the global financial crisis,” he said.

Following these amendments in the Pag-IBIG housing loan program, the Fund expects to maintain a steady growth in loans granted to members and attain its target of P43 billion takeout for 2009.  “This will further sustain the housing sector by providing financing to home buyers at very attractive, affordable rates,” De Castro said. (end)

A.   Attend a loan counselling session at the Pag-ibig office concerned and be  briefed on the eligibility.Accomplish a preliminary loan counseling questionnaire, Housing Loan Application (HLA) and Membership Status Verification Slip (MSVS). This will find out if one has an outstanding obligation with
       Home Development Mutual Fund (HMDF).  If eligible, secure the following documents:

        * Members Status Verification Slip (MSVS)
        * Notarized Housing Loan Application (HLA), Principal / Co-borrowers
        * Latest payslip duly certified by the employer (Indicate printed name and designation of assigned signatory)
        * Notarized Certificate of Employment Compensation (CEC)
        * Income Tax Return (ITR) with W2 form
        * Proof of billing address (Electric bills, PLDT. water bills, subscriptions, letters, credit card billing)
        * Certified true copy of Condominium Certificate of Title (CCT). Latest title and its trace back through the Registry of Deeds
        * Tax Declaration of the property and/or parking
        * Tax Receipts of the property
        * Contract to Sell (CTS)
        * Special Power of Attorney (if applicable) (SPA). a) marriage contract / Birth Certificate. B. Valid ID’s Passport, License, Voters I.D. SSS I.D., Company I.D.
        * Location Plan and vicinity map signed by surveyor
        * Building, Electric, Sanitary Permits
        * Building / Floor plans signed by the borrower
        * Specification and Bill of Materials signed by a licensed Engineer.
        * License to Sell, Certificate of Registration and Development Permit (if applicable)
        * Note: Incomplete documents shall not be accepted.    Submit two (2) sets of documents. Original / photocopy. Always bring the original for authentication and verification. Filing fee: P1,000

B.   Receive Notice of Approval / Letter of Guarantee and sign loan documents

C.   Proceed to BIR and present Deed of Absolute Sale (DOAS) between the developer of the condo unit and applicant for payment of documentary stamps and capital gains tax (if needed).

D.   Proceed to the City Hall for payment of transfer tax

E.   Proceed to the Registry of Deeds for payment of Registration Fees for the transfer of title.

F.   Proceed to the Notary Public for notarization of Loan Mortgage Agreement (LMA) and annotation of mortgage with the Registry of Deeds.

G.  Proceed to Assessor’s office to secure new tax declaration in the name of the applicant.

H.  Secure occupancy permit from the local government Unit.

I.    Submit the following documents to Pag-ibig office concerned:

      * Original Transfer Certificate of Title (TCT) or Condominium Certificate of Title (CCT) in case of a condominium unit, in the name of the applicant with annotated mortgage.
      * DOAS with original Registry of Deeds stamp.
      * New tax declaration in the name of the applicant.
      * Updated real estate tax receipt (if applicable)
      * Occupancy Permit
      * Assignment of loan proceeds to the developer

J.   Release of loan proceeds to the developer

F.  Start amortization on the month immediately following loan take out / final loan release.

Important Note: The requirements above may appear voluminous and the steps may be troublesome to follow through. On the other hand, our group of consultants are trained to work closely with developers so that all these requirements will be complied with for our buyers’s worry free transaction and minimal participation in the process. We do not charge any fees for processing or any commission whatsoever. The developers will take care of us and their prices remain the same even if sales are made without the agents or brokers.