Promo rates, higher loan ceiling bring down Pag-IBIG payments

MANILA, Philippines — The Home Development Mutual Fund, commonly known as Pag-IBIG Fund, is extending below-market housing loan rates and maintaining its higher loan ceiling, leveraging its strong financial position to keep homeownership affordable for Filipinos.

In a statement, the fund said eligible socialized housing borrowers could still avail themselves of the subsidized three percent rate and the ongoing promotional rates of 4.5 percent and 5.75 percent for low-cost to open-market homes.

It also maintained the higher maximum loan amount of P10 million.

“Pag-IBIG’s promo rates are about making homeownership more affordable at a time when many Filipino families are carefully weighing the cost of buying a home,” Department of Human Settlements and Urban Development Secretary Jose Ramon Aliling said.

Aliling, who also chairs the Pag-IBIG Board of Trustees, said that by lowering monthly amortization, the fund helps more workers qualify for home financing, supports stronger housing demand and encourages more activity in the housing market.

The promo rates provide qualified members with more affordable monthly payments, amid expectations that recent benchmark rate adjustments may lead to higher commercial housing loan rates.

Under the Expanded Pambansang Pabahay para sa Pilipino Program, eligible socialized housing borrowers may avail of a subsidized rate of three percent, including for a house-and-lot worth P950,000, with a monthly amortization as low as P4,005.

Qualified members may avail themselves of the 4.5 percent promo rate for low-cost housing loans above the socialized housing threshold, up to P4.9 million and the 5.75 percent promo rate for loans above P4.9 million to P10 million.

Pag-IBIG CEO Marilene Acosta said the fund’s ability to offer below-market rates is a direct result of its strong financial position and prudent lending discipline.

“Our total assets and net income have grown steadily, our collections remain healthy and our members continue to save with us in record numbers,” she said.

Acosta said the financial strength allows the fund to pass on real savings to borrowers through lower monthly payments, while continuing to grow the funds entrusted to us by our members.

In the January to May period, members entrusted the fund with P90.24 billion in savings, even as the agency released P55.26 billion in housing loans to finance the acquisition of 34,641 homes.

“These results, together with Pag-IBIG’s strong asset base and fiscal standing, further strengthen its capacity to sustain below-market housing loan rates while delivering competitive returns to members,” Pag-IBIG said.