STATE-OWNED Pag-IBIG Fund is expanding access to home financing by maintaining subsidized and promotional housing loan rates while raising its maximum loan ceiling to P10 million, as it seeks to cushion borrowers from rising commercial lending costs and stimulate housing demand.
Subsidized and Promotional Rates Maintained
In a statement, the agency said eligible socialized housing borrowers may continue to avail themselves of a subsidized interest rate of three percent per annum under the Expanded Pambansang Pabahay para sa Pilipino (4PH) Program. Qualified members may obtain promotional rates of 4.5 percent for low-cost housing loans and 5.75 percent for open-market homes. The enhanced program also increased the maximum housing loan amount from previous limits to P10 million.
Government Officials Highlight Affordability
Department of Human Settlements and Urban Development Secretary Jose Ramon Aliling, who chairs the Pag-IBIG Board of Trustees, said the financing package is intended to make homeownership more affordable for a wider range of Filipinos, from minimum-wage earners to middle-income workers. He noted that lower rates reduce monthly amortization, enabling more workers to qualify for housing loans while supporting demand in the residential property market.
Under the program, borrowers purchasing a P950,000 socialized house and lot could pay monthly amortization as low as P4,005 at the three-percent interest rate. The 4.5-percent promotional rate applies to loans above the socialized housing threshold up to P4.9 million, while the 5.75-percent rate covers loans exceeding P4.9 million up to P10 million. Aliling said affordable housing finance also has broader economic benefits, noting that every housing project generates business for builders, suppliers, transport providers, furniture manufacturers and retailers.
Below-Market Rates Amid Rising Benchmarks
The agency said its below-market loan rates come at a time when benchmark interest rate adjustments could translate into higher borrowing costs from commercial lenders, allowing Pag-IBIG members to secure more affordable financing despite the prevailing interest rate environment.
Strong Financial Position Enables Lower Rates
Pag-IBIG Chief Executive Officer Marilene Acosta said the agency’s ability to offer lower-than-market interest rates stems from its strong financial position and prudent lending practices. She said Pag-IBIG’s assets and net income have continued to grow while collections remain healthy and members’ savings reached record levels, enabling the agency to pass on savings to borrowers without compromising returns for members.
From January to May 2026, Pag-IBIG members contributed P90.24 billion in savings, while the agency released P55.26 billion in housing loans that financed 34,641 homes. Officials said the agency’s financial performance has strengthened its capacity to sustain affordable housing loan rates while continuing to provide competitive returns on members’ savings. Acosta said Pag-IBIG’s housing and savings mandates complement each other, with members’ savings providing the resources to finance more housing loans while prudent fund management ensures the agency remains financially strong enough to support future borrowers.
