Pag-IBIG cuts home loan costs for Filipinos

Pag-IBIG Fund continues to offer more affordable home financing options under the Expanded Pambansang Pabahay para sa Pilipino Program, or Expanded 4PH, in line with President Ferdinand R. Marcos Jr.’s directive to make homeownership more accessible to Filipino workers, officials said.

The agency’s options include a subsidized rate of 3% for eligible socialized housing borrowers, promotional rates of 4.5% and 5.75% for low-cost to open-market homes, and a higher maximum housing loan amount of PHP 10 million.

Department of Human Settlements and Urban Development Secretary Jose Ramon P. Aliling, who also chairs the Pag-IBIG Fund Board of Trustees, said the agency’s lower rates serve a broader market, from minimum-wage earners to middle-income workers, by helping keep monthly payments within reach.

“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. “By lowering monthly amortization, we help more workers qualify for home financing, support stronger housing demand and encourage more activity in the housing market.”

Under the Expanded 4PH, Pag-IBIG Fund’s housing loan rates are structured to serve members across income segments.

Eligible socialized housing borrowers may avail themselves of the subsidized 3% rate, including for a house and lot worth PHP 950,000 with monthly amortization as low as PHP 4,005.

Qualified members may avail themselves of the 4.5% promotional rate for low-cost housing loans above the socialized housing threshold up to PHP 4.9 million, while loans above PHP 4.9 million up to PHP 10 million may qualify for the 5.75% promotional rate.

Pag-IBIG Fund, formally the Home Development Mutual Fund, is a government-run savings and housing finance institution that uses members’ savings to support affordable housing loans.

“Housing has a direct impact on the economy. Every home financed means work for builders, suppliers, transport providers, furniture makers, retailers and many other sectors connected to housing,” Aliling said. “This is why affordable home financing is not only good for Filipino families. It also helps create jobs, support businesses and move the economy forward.”

Officials said the promotional rates provide qualified members with more affordable monthly payments amid expectations that recent benchmark rate adjustments may lead to higher commercial housing loan rates.

Pag-IBIG Fund Chief Executive Officer Marilene C. Acosta said the agency’s ability to offer below-market rates is a direct result of its strong financial position and prudent lending discipline.

“We are able to offer these lower rates precisely because of our strong financial position,” Acosta said. “Our total assets and net income have grown steadily, our collections remain healthy, and our members continue to save with us in record numbers. That financial strength allows us to pass on real savings to borrowers through lower monthly payments, while continuing to grow the funds entrusted to us by our members.”

Officials pointed to Pag-IBIG Fund’s performance in the first five months of 2026 as the foundation for the better housing terms.

From January to May, members entrusted Pag-IBIG Fund with PHP 90.24 billion in savings, while the agency released PHP 55.26 billion in housing loans that financed 34,641 homes.

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

Acosta said the agency’s ability to make home financing more affordable while protecting members’ savings reflects the disciplined balance at the core of Pag-IBIG Fund’s dual mandate.

“Pag-IBIG’s housing and savings mandates are bound by one purpose, to help Filipino workers build financial security and achieve homeownership,” Acosta said. “Every housing loan we release draws strength from our members’ savings, while every peso we prudently manage keeps Pag-IBIG strong for the next family seeking a home. This balance allows us to deliver competitive savings returns and more affordable home financing at the same time, because the strength of one mandate sustains the other.”