Is It a Good Time to Apply for a Pag-IBIG Housing Loan?

housing loan service

housing loan serviceFilipinos who want to have their own house this year should consider applying for a Pag-IBIG Fund loan, as it has offered its lowest-ever interest rate for a P450,000 loan.

The government agency provides the financing program to low-income households under the Affordable Housing Program, according to Pag-IBIG Fund deputy CEO Marlene Acosta.

Housing Assistance

Acosta said that Pag-IBIG Fund decided to offer the new annual interest rate of 3% after they recorded P65.1 billion of total loans issued in 2017. Applications for home financing comprised P27.7 billion, or 42.5% of the total takeout value. For comparison, the lowest fixed interest rate for a regular housing loan is “5.375% per annum for a one-year fixed re-pricing period,” she noted.

The record-low interest rate for Pag-IBIG home loans may entice more people to take out a loan, so real estate agents should update themselves with prices of different properties in the country, including developments in provinces such as Cavite’s Lancaster. A review website such as Property Survey serves as a good option both for buyers and agents who want to compare prices.

Comparing Interest Rates

When shopping around for interest rates, buyers should also take note whether they want a fixed or variable interest rate. The latter helps you manage your finances more efficiently since you only need to pay an exact monthly mortgage payment. However, it can be more expensive than variable rates.

Variable-rate loans may be cheaper yet your monthly payments may increase when market rates are on an upswing, aside from making it hard for you to estimate just how much you need to pay each month.

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Pag-IBIG Fund’s housing loan has been the go-to option for many Filipinos who want to realize their dream of being a homeowner. While the loanable amount may be quite small, the low-interest rate should be a good enough reason to apply for financing this year.