Pag-IBIG Fund Davao branch raked in about a billion pesos under its end-user financing for housing projects as of November 2007 making the Southern Mindanao Group achieved 116 percent performance for its housing services. Most of the homebuyers from the other parts of Mindanao chose Davao City to locate their residence or second home.
The Southern Mindanao group surpassed their target by hitting 116 percent or about P1.454 billion which were spent to fund some 3,797 units as against the 2007 target of only P1.258 billion.
Davao City (to include Davao del Sur area) was able to deliver some 2,079 units valued at P957,175,000; General Santos City with 795 units with cost at P265,317,000; Tagum (including Davao Oriental and Compostela Valley Provinces) had 715 units with P165,598, 000 funding and Cotabato (to include Maguindanao, North Cotabato, Sultan Kudarat and Cotabato City) had 208 with P66,664, 000.
Pag-IBIG Fund vice presdient for Southern Mindanao operations Jose W. Banzon, Jr. attributed the increase in housing availment to their new scheme where interest rates were brought down making housing units affordable to homebuyers.
He said they observed that homebuyers in Davao City are mostly families sending their children in colleges and universities.
“This is the wisest decision they make because it is more advantageous nowadays to buy a house than rent one where the amortization is much lower than renting a house,” he said.
For a P300,000 house and lot package one would only get an interest rate of 6 percent or an amortization of about P1,800. Before the same package was charged 9 percent interest rate and the monthly amortization of P2,700.