Pag-IBIG lowers housing loan rates anew

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 P1 million, 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)

Israeli ambassador sees huge potential for business linkages

By Rhia de Pablo Updated April 04, 2009 12:00 AM

CEBU, Philippines - Having seen the huge potential of doing business linkages with the Philippines, Israel ambassador Zvi A. Vapni is now intensifying efforts to touch base with the business community to present win-win propositions that will jumpstart investment opportunities between the two countries.

In his visit to Cebu, Vapni said in a press conference that their primary goal is to create stronger business ties with the country since currently there is a fairly small cooperation between Israel and the Philippines.

He discussed that Israel is a world leader in high tech innovations especially in developing sophisticated software programs that are bought by the big economies of the world.

Examples of these technological breakthroughs are the flash drive and the technology behind chatting being used in applications like AOL, Google, and among others, which Vapni said are worth million dollars.

In this regard, Vapni is eyeing possible cooperation with the Philippines through the establishment of call centers and production facilities in the country that will provide support to their high tech innovations.

Aside from this, Israel is also known for its strength in agricultural technology, which is another area where there can be cooperation between the two countries.

“The focal point of our activity is to reach broader presence in different regions of the world. There is definitely a big potential for cooperation with our countries. Our business companies can help as advisers to provide technological assistance in agricultural technology here in the Philippines,” said Vapni.

He said that even in the field of tourism, the Philippines and Israel can develop a mutually beneficial relationship.

He stressed that aside from the Holy Land, Israel has more things to offer tourists such as the Dead Sea, the dramatic landscape of their rocky deserts and other worthwhile attractions.

While on the other hand, the Philippines can also offer other alternative tour packages for Israeli tourists.

“There are not enough Filipinos who go to Israel as tourists and there are also a few Israelis who come to the Philippines. There is still a lack of awareness on both sides but our tourists will definitely come here if they knew about the beautiful places they can visit. The potential of the Philippines as a business partner is very clear so there is no reason why we cannot develop stronger ties,” said Vapni.

He said that in Israel, there are 60,000 Filipinos who are mostly working as caregivers and are in demand because they have been known to provide quality service.

Currently, trading between the Philippines and Israel is only estimated to be $200 million while Israel exports to the country are worth $18 billion and these are through machineries and equipment.

He said that some Israeli companies are already working with some companies in the Philippines like PLDT, Globe and Smart and that they have developed good working relationships but these are still a few.

“We want to have a proactive attitude to enhance our business relations with the Philippines. The challenge right now is to introduce to the Philippines the possibility of looking at Israel as another partners and market to boost future investments between both countries. We are sure that there is a big potential to achieve that goal,” said Vapni.

The Israeli Embassy has tapped the Cebu Chamber of Commerce and Industry and is looking at the possibility of doing trade missions to Cebu and to Israel and had appointed Emily C. Benedicto as its honorary consul to intensify its efforts to boost cooperation with the Philippines.