The state-run housing lender Pag-Ibig Fund has raised its maximum housing loan ceiling to P10 million, aiming to help more middle-income Filipinos purchase homes and boost sales of unsold condominium units in Metro Manila and other urban areas.
Support for Expanded Housing Program
In a statement, Pag-Ibig said the move supports the Expanded Pambansang Pabahay para sa Pilipino (Expanded 4PH) Program while addressing the oversupply of ready-for-occupancy condominium units in key cities.
“With the higher P10-million loan ceiling, Pag-Ibig Fund can now serve more members, especially Filipino workers who seek homes in higher price segments but still require long-term and affordable financing,” said Department of Human Settlements and Urban Development Secretary Jose Ramon Aliling.
Boost to Real Estate Sector
The increase could provide a lift to the real estate sector, particularly condominium developers facing slower take-up rates amid elevated interest rates and affordability concerns. Aliling urged developers to recalibrate prices and offer more affordable packages to match borrowers’ purchasing capacity.
“This is also our call to developers: let us make the numbers meet,” he said, noting that affordable financing alone would not be enough if housing prices remain beyond the reach of most workers.
Financial Strength and Low Interest Rates
Pag-Ibig Fund Chief Executive Officer Marilene Acosta said the agency remains financially strong enough to offer larger loan amounts while keeping interest rates among the lowest in the market. Qualified borrowers may avail themselves of repayment terms of up to 30 years, with interest rates as low as 5.75 percent, depending on the chosen fixing period. Socialized housing borrowers will continue to enjoy the subsidized 3 percent interest rate on housing loans.
Encouraging Homeownership
Acosta said the expanded loan ceiling could also encourage more Filipinos to shift from renting to homeownership, especially in urban areas where monthly amortizations for reasonably priced homes may already be comparable to rental costs. The higher loan limit remains subject to credit evaluation, collateral appraisal, and capacity-to-pay requirements, Pag-Ibig Fund said.
