PAG-IBIG Fund is expanding its home financing support by lowering promotional interest rates and increasing its maximum housing loan ceiling to P10 million, as the government seeks to make homeownership more affordable for Filipino workers.
The agency said the adjustments are intended to help reduce monthly housing payments amid higher commercial lending rates and support the government’s Expanded Pambansang Pabahay para sa Pilipino Program (Expanded 4PH).
Department of Human Settlements and Urban Development Secretary Jose Ramon Aliling, who also chairs the Pag-IBIG Fund Board of Trustees, said the lower rates are aimed at helping more workers qualify for housing loans.
“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,” Aliling said in a news release Tuesday.
“By lowering monthly amortization, we help more workers qualify for home financing, support stronger housing demand, and encourage more activity in the housing market,” he added.
Under the updated housing loan program, qualified borrowers for socialized housing may avail of a subsidized annual interest rate of 3 percent.
The rate allows monthly amortization as low as P4,005 for a house-and-lot package valued at P950,000.
For low-cost housing loans beyond the socialized housing threshold, Pag-IBIG offers a promotional interest rate of 4.5 percent for loans up to P4.9 million.
Loans exceeding P4.9 million and up to the new maximum ceiling of P10 million may avail of a promotional rate of 5.75 percent.
Aliling said improving access to housing financing could also generate wider economic activity through industries connected to home construction and ownership.
“Every home financed means work for builders, suppliers, transport providers, furniture makers, retailers, and many other sectors connected to housing,” he said.
Pag-IBIG Fund Chief Executive Officer Marilene Acosta said the agency’s financial position allows it to provide lending rates below those offered in the commercial market.
“We are able to offer these lower rates precisely because of our strong financial position. Our total assets and net income have grown steadily, our collections remain healthy, and our members continue to save with us in record numbers,” Acosta said.
Pag-IBIG data showed that members saved P90.24 billion during the first five months of 2026.
During the same period, the agency released P55.26 billion in housing loans, financing the acquisition of 34,641 homes.
The agency said the expanded loan ceiling and promotional rates are part of efforts to strengthen access to housing finance while supporting the government’s broader housing agenda.
Photo courtesy of R Land Development
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