MANILA – Filipinos may soon be able to secure a home loan in just seven days, as presidential frontrunner Ferdinand “Bongbong” Marcos Jr. is determined to revive an initiative to address the burgeoning housing backlog in the country.
Previously implemented by the Home Development Mortgage Fund (HDMF), more commonly known as the Pag-IBIG Fund, the 7-Day Takeout Policy will shorten the application process for low-cost home loans.
“We recognize the desire of every Filipino family to have a decent and secure home. We will strive to provide the Filipino worker with a home that restores their dignity and hope for a better future,” Marcos said in a statement. press on Sunday.
It can be recalled that Pag-IBIG was created by the then President, Ferdinand Marcos, in 1978 by Presidential Decree No. 1530, specifically to meet the need for a national program of savings and financing of affordable housing for Filipino workers.
The withdrawal policy would significantly reduce the waiting time for loan approval, which currently ranges from three to four months.
Government data shows that the country’s total housing need will reach 6.8 million units by the end of 2022 and could reach 22 million units by 2040 if not met.
According to the Philippine Statistics Authority (PSA), the country’s official total population as of May 1, 2020 reached 109.0 million, which equates to nearly 24.8 million households with an average family size of 4.4. members.
The budget or low-cost housing segment consists of units with a sale price between PHP 580,000 and PHP 1.7 million.
Meanwhile, social housing projects cost no more than PHP 580,000 for horizontal development and PHP 750,000 for vertical development.
“Unlike previous efforts, we will strive to take a whole-of-society approach to solving our growing housing problem. We must have convergence among all stakeholders as we institute regulatory and policy reforms,” Marcos added. .
In addition to providing Pinoys with a decent life, housing development can also help revive economic activity through job creation, consumption and indirect tax revenue.
Its downstream effects on 80 industries also bode well for our bid to recover from the negative impact of the Covid-19 pandemic. (RP)