Pag-IBIG home loan releases hit record-high P12.11B in December amid the pandemic

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Pag-IBIG Fund home loan releases hit a record-high in December as disbursement  reached P12.11 billion despite the economic downturn caused by the Covid-19 pandemic,  top officials of the agency announced on Wednesday (Jan. 27). This amount is P640  million higher, or a six percent increase, from the previous record of P11.47B that was  set in December 2019.

“Our home loan takeouts in December is the highest for a single month in Pag-IBIG  Fund’s history. Because of it, we were able to finance the acquisition of 12,275 homes for  our members in December alone, which is also a record-high. Amid the challenges, Pag IBIG has provided homes to more members during the pandemic, aiding in the  government’s efforts led by President Duterte, to keep Filipino families safe at home,”  said Secretary Eduardo D. del Rosario, who heads both the Department of Human  Settlements and Urban Development (DHSUD), and the 11-member Pag-IBIG Fund  Board of Trustees.

For year 2020, Pag-IBIG Fund released P63.75 billion in home loans allowing 63,750  members to acquire their own homes. Out of the total amount, 11 percent or P7.1 billion  were released as socialized home loans for the benefit of 16,975 Pag-IBIG Fund members  who belong to the minimum-wage and low-income sectors, del Rosario added.

Meanwhile, Pag-IBIG Fund Chief Executive Officer Acmad Rizaldy P. Moti expressed  optimism that the numbers will continue to rise especially as the economy has reopened.

“From September to December, our home loan releases were close to ‘pre-pandemic’  levels. We released more than P6 billion to P7 billion in home loans every month,  reaching its peak in December when releases reached over P12 billion. The year 2020  may not have been record-breaking in terms of numbers, but it was a story of grit and  resiliency as we were able to bounce back quickly,” Moti said.

He said that Pag-IBIG Fund was poised to achieve another milestone year in 2020 as the  combined home loan releases in January and February amounted to P12 billion, growing  17 percent compared to the same period in 2019. But as expected, home loan numbers  started to decline in March when strict community quarantine measures were imposed to  curb the spread of Covid-19. Home loan releases dipped to P3.8 billion in March and  P883 million in April. But, as restrictions were eased, home loan figures started to  recover in as early as May when disbursements jumped to P1.2 billion and rose even  higher to P2.9 billion in June. Loan releases continued to climb in the second half of  2020. And by the end of the third quarter, home loan releases had already recovered.

“Looking at the bigger picture, the improvement in numbers does not only mean  increased homeownership among Filipinos. It also means that Pag-IBIG Fund is able to  take part in ensuring the safety of our members and their families, especially during this  time of a pandemic. Rest assured that as 2021 unfolds, we will continue to be our  members’ reliable partner as we all journey to full recovery,” Moti added.

In total, Pag-IBIG Fund approved P84.53 billion in home loans to finance the acquisition  of 80,748 homes last year. Of this, the amount of P20.78 billion represents approved  home loan applications pending for release, the proceeds of which are ready for  disbursement upon submission by borrowers of post-approval requirements.