Pag-IBIG posts P73 billion in members’ savings 

Member savings collections of the Home Development Mutual Fund, commonly known as Pag-IBIG, reached a record high P73 billion from January to November last year, giving the agency more flexibility to implement its programs, according to a report by Phiippine Star.

During the Laging Handa briefing yesterday, Pag-IBIG department manager for public media affairs Jack Jacinto said Pag-IBIG members saved P72.88 billion from January to November last year.

Jacinto said this is the highest recorded savings for any 10-month period as well as full-year figures and is part of Pag-IBIG’s record-high accomplishments last year in terms of collections and loan releases.

This allowed Pag-IBIG to surpass its target of collecting some P70 billion in savings, of which 50 percent will come from its Modified Pag-IBIG 2 Savings (MP2), a voluntary program for its members.

During the period, Pag-IBIG also released a record P104 billion in housing loans that benefited 93,600 members. It effectively closed in on its goal of providing P110 billion in home loans.

Its short-term loans also increased to P50 billion and aided 2.4 million members. Home loan payments also jumped to a record P131 billion.

Pag-IBIG’s total actively contributing members also went up to 15.1 million as of end-November from the 13.5 million in 2021.

Given Pag-IBIG’s record performance in 2022, Jacinto said the agency is in good financial standing even without an increase in the contribution of its members until 2024.

“We can comply with benefits and demands for loans even if we don’t increase our contribution,” Jacinto said.

Nonetheless, Pag-IBIG will still conduct dialogues with labor and employer groups over the coming months to discuss the need to hike contributions.

“Consultations will be done to prepare and study for the increase because it was still in 1986 when Pag-IBIG last raised contributions for members and employers,” Jacinto said.

“Higher contribution will mean higher savings and expanded benefits for our members,” he said.

Pag-IBIG was originally scheduled to raise contribution rates in 2021 but was deferred for three years due to the impact of the pandemic on members and the business community.

Under the Marcos administration, Pag-IBIG intends to finance at least 708,000 housing units.

Under the Pag-IBIG’s Affordable Housing Program, eligible borrowers have a special subsidized rate of three percent per annum for home loans of up to P580,000 for socialized subdivision projects.

Standing out as the lowest interest in the loan market, Pag-IBIG first offered the subsidized rate five years ago to help more members, particularly those from the minimum-wage sector, acquire their homes.