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. The initiative seeks to provide better financing options to match the diverse needs, income levels, and family situations of its members.
According to Philippines News Agency, the agency's recent decision to increase its maximum housing loan limit to PHP10 million per borrower complements these promotional rates. The Department of Human Settlements and Urban Development (DHSUD) Secretary and Pag-IBIG Fund Board Chairman, Jose Ramon Aliling, emphasized the continuous efforts to widen access to affordable home financing, thereby supporting the local housing industry.
Under the Expanded 4PH Program, the Pag-IBIG Fund has made socialized housing more accessible to low-income earners by offering a 3 percent subsidized housing loan rate for eligible socialized housing borrowers. Additionally, the increased loan limit aims to provide middle-class members with better opportunities to select homes that meet their needs and financial capacity.
The new scheme introduces promotional interest rates for housing loans or installment amounts. Loans above the socialized housing price ceiling of PHP950,000 for house-and-lot units and PHP1.8 million for condominium units, up to the low-cost housing ceiling of PHP2.5 million, will have a promotional interest rate of 4.5 percent per annum, fixed for three years. For loan amounts exceeding PHP2.5 million and up to PHP10 million, the interest rate will be 5.75 percent per annum, also fixed for three years. After this period, the loan will be repriced based on the borrower's chosen framework.
Pag-IBIG Fund Chief Executive Officer Marilene Acosta highlighted how these promotional rates will result in lower monthly amortizations during the initial three years of the housing loan. For example, a PHP2.5-million loan over 30 years will have an estimated monthly amortization of around PHP12,667 under the 4.5 percent rate, yielding significant monthly savings compared to the previous rate. Similarly, a PHP10-million loan over the same period will see monthly payments reduced to approximately PHP58,357 under the 5.75 percent rate.
Acosta further noted that the savings from these lower rates could support families' daily needs or be invested in Pag-IBIG Regular Savings or MP2 Savings. Eligible members can apply for the promo rates for Pag-IBIG Housing Loan and Pag-IBIG Acquired Assets Long-Term Installment Payment applications until December 31, 2026.
She emphasized that by tailoring the financing options to cater to varying member needs, incomes, and capacities, the promotional rates facilitate broader access to affordable housing finance, ultimately invigorating the local housing sector.
