Binay seeks lower interest rate for Pag-IBIG housing loan

CEBU CITY, Philippines  – Vice President Jejomar Binay wants another round of adjustment in housing loan interest rates of the Home Development Mutual Fund or Pag-IBIG Fund to make it more affordable to its members.

Current interest rates range from six percent per annum for loans of P400,000 and below to 8.5 percent for loans from P750,000 to P1 million.

Binay said he wants a lower interest rate to give poor Filipinos the chance to have a decent house through its various housing programs.

No specific figure has been given yet, but he said he had already ordered the Housing and Urban Development Coordinating Council (HUDCC) under him to study the reasonable interest level that would be affordable to members earning the minimum wage.

“We will be looking forward to a low interest. What we want is for the poor to have their own houses, so we will make it a reality,” Binay said.

He is looking at one of the possibilities of giving a house that is worth P100,000 to its members at only P350 a month if the loan term is for the maximum of 30 years.

“I’ve been a mayor for 20 years so I know the sentiments of the people. But that’s only the P100,000 house, the land is not yet included there,” he said.

With the prevailing interest rate, a member must pay P599 monthly loan amortization for 30 years.

Binay said he would find a way to lower the interest rate without necessarily affecting the revenue generation of the agency.

Pag-IBIG operates from its revenue since it is self-sustaining and not receiving subsidy from the national government, he added.

Meanwhile, Binay said he is planning to push for high-rise buildings as housing project because in some areas, lack of space for individual houses is a problem.

He said it would be a replication of what the city government of Makati has done during his term as mayor when they built tenements and rented the units to the people.

But this time, instead of leasing it, units will be sold at a reasonable price, he explained.

He said he would need the help of local government units in the various housing programs of the council in terms of providing the lot for the housing project while the council would take charge of site development. –Jessica Ann Pareja (The Philippine Star)