Pag-IBIG Fund approved more house loans amounting to P35.01 billion in the first four months this year, up by 10 percent from the year-ago level due to higher demand in bigger housing units.

“I can attribute it to the preference of borrowers to bigger housing units because of the pandemic. They will have more space which is beneficial especially when a family member gets sick. That person can be isolated,” Benjamin Felix Jr., Pag-IBIG Fund deputy chief executive officer, said Friday.

From the total loan release, P17 billion was borrowed by members in the National Capital Region, which represents 49 percent of all Pag-IBIG Fund borrowers. Compared to last year, the loans approved for NCR residents were higher by 13 percent.

Felix said the growth was driven by a growing population of families in the country’s business center.

“For Pag-IBIG, NCR also includes nearby provinces like Bulacan and Rizal. Most people concentrate in these areas because some businesses like corporations and mall operators have expanded outside Metro Manila,” he said.

Opting for condo units

While most Filipinos borrow money to purchase house and lot units, Felix said an increasing number of loan applicants opted to own condominium units.

“We are monitoring that because we’ve noticed there’s a shift. Condominiums are now more acceptable because they provide security personnel. Residents of units feel safer when they close their doors, unlike owners of house and lot units who are worried of trespassers climbing over their fences.”

Felix said condominium unit owners now represent five percent of the total owners of various housing types.

Pag-IBIG Fund lends up to P6 million, which is enough for a low-cost house and lot or condominium unit with three bedrooms.

Felix said the higher value of the total house loans from January to April this year partly reflected the increased prices of construction materials.

However, he stressed Pag-IBIG Fund will maintain reasonable loan terms “as long as the agency’s funds remain sustainable.”

For this year, Felix said the agency aims to provide up to P113 billion in house loans and P1 trillion for the next five years.

Last year, the agency lent P117.85 billion

Ideally, Felix said Pag-IBIG Fund must reach an annual growth of at least 15 percent in house loans. However, he said projected inflation rates might drag demand for house loans.

President Ferdinand Marcos Jr. expects at least 6.5 million Filipinos to own homes through affordable financing programs from various government agencies, including Development Bank of the Philippines and Government Service Insurance System.