Manila: The Pag-IBIG Fund on Monday announced its decision to uphold a 3 percent annual interest rate for eligible socialized housing loans under the Expanded Pambansang Pabahay para sa Pilipino (4PH) Program. This move aims to ensure affordable homeownership amidst market uncertainties stemming from the Middle East conflict.
According to Philippines News Agency, the Department of Human Settlements and Urban Development (DHSUD) Secretary Jose Ramon Aliling emphasized that the directive aligns with President Ferdinand R. Marcos Jr.'s commitment to maintaining the rate. The goal is to allow more Filipino workers to continue pursuing homeownership during global instability. Aliling, who chairs the Pag-IBIG Fund Board of Trustees, highlighted the importance of keeping monthly amortizations low to assist families in securing homes and sustaining employment in the housing sector.
The program offers the subsidized 3 percent rate for the first five years of the loan term to first-time homebuyers earning less than PHP47,856 monthly in the National Capital Region (NCR) and less than PHP34,686 in other regions. Additionally, all overseas Filipino workers (OFWs) are eligible regardless of their income level. An "Early Bird Promo" is also available, allowing the first 30,000 qualified borrowers to benefit from the 3 percent rate for the first 10 years of their loan.
The loan terms cater to socialized house-and-lot units priced up to PHP950,000 or condominium units up to PHP1.8 million. With a 100 percent loan-to-value ratio, no cash equity is required, and up to PHP100,000 in additional financing for home improvements is offered. Monthly payments are estimated at PHP4,005 for a house and lot and PHP7,589 for a condominium, often lower than prevailing rental costs. National government subsidies could further reduce the effective rate to as low as 1 percent.
Pag-IBIG Fund Chief Executive Officer Marilene Acosta attributed the agency's strong fiscal health to its ability to maintain the subsidized interest rate. Acosta stated that this financial stability enables more working Filipinos to pursue homeownership under the Expanded 4PH program.
To further assist its members, Pag-IBIG is organizing regional housing fairs across the country, following a successful launch in Central Luzon. Upcoming fairs are planned for South Luzon, Visayas, Mindanao, and the NCR. In 2025, Pag-IBIG Fund achieved a record housing loan performance, releasing PHP140.54 billion in loans to 90,727 Filipino workers and their families.
