STATE-RUN Pag-Ibig Fund has lowered housing loan rates for members buying homes worth up to P10 million, a move aimed at making homeownership more affordable under the government’s Expanded Pambansang Pabahay para sa Pilipino (4PH) Program.
The new promotional rates, available until Dec. 31, 2026, follow Pag-Ibig Fund’s decision to increase its maximum housing loan amount to P10 million per borrower, expanding financing options for middle-income and other qualified members.
Under the program, housing loans above the socialized housing price ceiling and up to the low-cost housing ceiling of P2.5 million will carry an interest rate of 4.5 percent per year, fixed for three years. Loans above P2.5 million up to P10 million will be charged 5.75 percent annually, also fixed for three years.
The socialized housing ceiling is currently set at P950,000 for house-and-lot units and P1.8 million for condominium units.
Department of Human Settlements and Urban Development (DHSUD) Secretary and Pag-Ibig Fund Board chairman Jose Ramon Aliling said the Expanded 4PH Program has already introduced a three percent subsidized housing loan rate for eligible socialized housing borrowers and increased the maximum housing loan limit to P10 million.
Reduced Monthly Amortizations
Pag-Ibig Fund Chief Executive Officer Marilene Acosta said the lower rates would reduce monthly amortizations, particularly during the first three years of a housing loan.
For a P2.5-million loan payable over 30 years, the estimated monthly amortization would fall to about P12,667 under the 4.5 percent promotional rate from roughly P15,393 under the previous 6.25 percent rate, resulting in monthly savings of about P2,726.
Meanwhile, a P10-million loan with a 30-year term would have an estimated monthly amortization of about P58,357 under the new 5.75 percent rate, compared with around P61,572 under the previous rate, translating to savings of approximately P3,215 a month.
After the three-year fixed-rate period, loans will be repriced based on the borrower’s selected repricing term.
The promotional rates apply to Pag-Ibig Housing Loan and Pag-Ibig Acquired Assets Long-Term Installment Payment applications received through the end of 2026.
Acosta said the reduced rates are intended to help members manage household expenses while building long-term savings and pursuing homeownership.
