Pag-IBIG offers promo housing loan rates

MANILA, Philippines — The Expanded Pambansang Pabahay para sa Pilipino Program continues to make home ownership more affordable for Filipino workers as Pag-IBIG Fund offers promotional housing loan rates for members buying homes above the socialized housing price ceiling of P10 million.

The new promotional rates build on Pag-IBIG Fund’s earlier move to increase its maximum housing loan amount to P10 million per borrower, giving members more financing options for homes that better match their needs, income and family situation.

Department of Human Settlements and Urban Development Secretary and Pag-IBIG Fund board chairman Jose Ramon Aliling said the promotional rates form part of Pag-IBIG Fund’s continuing efforts under the Marcos administration’s Expanded 4PH Program, which has widened access to affordable home financing, revitalized the housing industry and continues to help more Filipino families achieve home ownership.

“We continue to heed the directive of President Marcos to make decent and affordable homes more accessible to Filipino families,” Aliling said. “Under Expanded 4PH, Pag-IBIG Fund has made socialized housing more affordable for low-income earners through our three percent subsidized housing loan rate for eligible socialized housing borrowers.”

The increased housing loan limit of P10 million per borrower gives more members, particularly those in the middle class, a better opportunity to choose a home that matches their needs and capacity.

“Now, through these promotional rates, we are making those housing options even more affordable so more Filipino workers can take the next step toward owning a home,” Aliling said.

Under the promotional rates, housing loan or installment amounts above the socialized housing price ceiling, currently up to P950,000 for house-and-lot units and up to P1.8 million for condominium units and up to the low-cost housing ceiling of P2.5 million, shall have an interest rate of 4.5 percent per annum, fixed for three years. Meanwhile, housing loan or installment amounts above the P2.5-million low-cost housing ceiling up to P10 million shall have an interest rate of 5.75 percent per annum, also fixed for three years.

After the three-year fixed period, the loan shall be repriced based on the borrower’s chosen repricing period.

Pag-IBIG Fund chief executive officer Marilene Acosta said the lower rates will be felt directly by members through reduced monthly amortizations, especially during the first three years of their housing loan.

For example, a P2.5-million loan payable over 30 years will have an estimated monthly amortization of about P12,667 under the new 4.5 percent promotional rate, compared to about P15,393 under the previous 6.25 percent rate, or savings of around P2,726 per month. Meanwhile, a P10-million loan payable over 30 years will have an estimated monthly amortization of about P58,357 under the new 5.75 percent promotional rate, compared to about P61,572 under the previous 6.25 percent rate, or savings of around P3,215 per month.

Qualified members may apply for the promotional rates for Pag-IBIG Housing Loan and Pag-IBIG Acquired Assets Long-Term Installment Payment until Dec. 31, 2026.

“Affordable home financing and saving for the future are at the heart of Pag-IBIG Fund’s mandates, and we know that our members have different needs, incomes and capacities,” Acosta said. “Our goal is to make homeownership more affordable for more Filipino workers, while helping them keep more of their hard-earned money for their savings, their families and their future,” she added.