MANILA – The Pag-IBIG Fund has introduced promotional home loan interest rates aimed at making homeownership more affordable for Filipino workers under the Expanded Pambansang Pabahay Para sa Pilipino (4PH) Program.
In a news release on Thursday, the agency said the move follows its previous decision to raise its maximum housing loan limit to PHP10 million per borrower for financing options expansion to better match members’ needs, income and family situations.
Department of Human Settlements and Urban Development (DHSUD) Secretary and Pag-IBIG Fund Board Chairman Jose Ramon Aliling noted that these promotional rates are part of continuous efforts to widen access to affordable home financing and revitalize the local housing industry.
“Under Expanded 4PH, Pag-IBIG Fund has made socialized housing more affordable for low-income earners through our 3 percent subsidized housing loan rate for eligible socialized housing borrowers,” he said.
“We then increased our housing loan limit to PHP10 million per borrower to give more members, particularly those in the middle class, a better opportunity to choose a home that matches their needs and capacity,” he added.
Under the new scheme, housing loan or installment amounts above the socialized housing price ceiling—currently up to PHP950,000 for house-and-lot units and up to PHP1.8 million for condominium units—and up to the low-cost housing ceiling of PHP2.5 million will carry a promotional interest rate of 4.5 percent per annum, fixed for three years.
Meanwhile, loan amounts ranging above the PHP2.5 million low-cost housing ceiling up to PHP10 million will have an interest rate of 5.75 percent per annum, also fixed for three years.
Following the three-year fixed period, the loan will be repriced based on the borrower’s chosen repricing framework.
Pag-IBIG Fund Chief Executive Officer Marilene Acosta emphasized that the promotional rates will directly translate to lower monthly amortizations, particularly during the initial three years of the housing loan.
For instance, a PHP2.5-million loan payable over 30 years will carry an estimated monthly amortization of about PHP12,667 under the 4.5 percent promotional rate.
This reflects a monthly savings of around PHP2,726 compared to the PHP15,393 amortization under the previous 6.25 percent rate.
For a PHP10-million loan stretched over 30 years, the monthly payment drops to approximately PHP58,357 under the 5.75 percent promotional rate, yielding around PHP3,215 in monthly savings against the previous rate’s PHP61,572 amortization.
“By lowering our three-year fixed rates from 6.25 percent to as low as 4.5 percent, we are helping our members save on their monthly amortization during the first three years of their loan,” she said.
She added that the savings can help families manage their daily needs, or have them placed in their Pag-IBIG Regular Savings or MP2 Savings.
Qualified members can avail themselves of the promo for Pag-IBIG Housing Loan and Pag-IBIG Acquired Assets Long-Term Installment Payment applications received until Dec. 31, 2026.
Citing that members have different needs, incomes and capacities, Acosta said the promotional rates would give them wider access to affordable home financing which would, in turn, revitalize the local housing industry. (PNA)