Pag-IBIG Fund keeps 3% socialized housing rate amid Middle East conflict

Pag-IBIG Fund said it shall maintain its 3% annual interest rate for qualified socialized housing loans under the Expanded Pambansang Pabahay para sa Pilipino Program, keeping homeownership affordable at a time when the conflict in the Middle East continues to unsettle global oil markets and drive volatility in oil prices.

The move supports President Ferdinand R. Marcos Jr.’s directive to keep decent and affordable housing within reach of Filipino workers, especially those from the low- and moderate-income sectors seeking to achieve homeownership.

“In keeping with the directive of President Ferdinand R. Marcos Jr., Pag-IBIG Fund shall maintain the 3% interest rate for qualified socialized housing loans under the Expanded 4PH so that more Filipino workers can continue to pursue homeownership even during a time of global uncertainty,” said Department of Human Settlements and Urban Development Secretary Jose Ramon P. Aliling, who chairs the Pag-IBIG Fund Board of Trustees.

“By keeping monthly amortizations low, we are helping more working families secure a home of their own while supporting sustained housing production and the jobs it generates, in step with broader national efforts to keep the economy stable.”

Under the program, first-time homebuyers, particularly those earning less than PHP 47,856 per month in the National Capital Region and less than PHP 34,686 outside NCR, may qualify for the subsidized 3% rate for the first five years of the loan term.

All overseas Filipino workers, regardless of income, may also qualify. Separately, under Pag-IBIG Fund’s Early Bird Promo, the first 30,000 qualified borrowers may enjoy the same 3% rate for the first 10 years of their housing loan, allowing them to save more and benefit from affordable and predictable monthly amortizations for a longer period.

The loan may be used to purchase socialized house-and-lot and condominium units priced at up to PHP 950,000 and PHP 1.8 million, respectively. It also provides up to PHP 100,000 in additional financing for home improvements, such as utility connections and home fixtures, and carries a 100% loan-to-value ratio, meaning no cash equity is required.

At these terms, the monthly amortization is about PHP 4,005 for a house-and-lot unit worth up to PHP 950,000 and about PHP 7,589 for a condominium unit worth up to PHP 1.8 million, amounts that are lower than the cost of monthly rent. In addition, eligible borrowers may further benefit from an additional subsidy provided by the national government, which may bring down the annual interest rate to as low as 1% and make monthly payments even lower.

Meanwhile, Pag-IBIG Fund Chief Executive Officer Marilene C. Acosta said maintaining the 3% rate reflects Pag-IBIG Fund’s strong fiscal standing and its continuing commitment to carry out President Marcos’ housing agenda in a way that keeps homeownership within reach of working Filipino families.

“We continue to heed the direction of President Marcos in helping uplift the lives of Filipino workers by keeping homeownership affordable for those who need it most,” Acosta said. “Our strong fiscal standing allows Pag-IBIG Fund to keep the subsidized 3% rate in place so more working Filipinos can continue pursuing homeownership under the Expanded 4PH.”

Acosta added that, beyond keeping loan rates low, Pag-IBIG Fund is also making it easier and less costly for members to look for a home through regional housing fairs that bring together quality housing units available for sale, partner developers, and Pag-IBIG Fund financing support in one venue.

Earlier this year, Pag-IBIG Fund launched its series of regional housing fairs through the Central Luzon Housing Fair. It is set to hold similar fairs in South Luzon, the Visayas, Mindanao, and the National Capital Region in the coming weeks. The Central Luzon fair gathered more than 40 developers, financing institutions, and government agencies in one venue and provided on-site assistance for loan applications.

“Through these regional housing fairs, we are making it easier and less costly for members to find a home by bringing quality housing units available for sale, partner developers, and Pag-IBIG Fund financing together in one place,” Acosta said.

“That is how Pag-IBIG Fund will continue providing more Filipino families with practical pathways to homeownership, turning affordable financing into real opportunities to own a home.”

Pag-IBIG Fund’s capacity to sustain this support is backed by its record housing loan performance in 2025, when it released PHP 140.54 billion in housing loans benefiting 90,727 Filipino workers and their families, reflecting both the strength of its finances and its continued ability to help more members achieve homeownership.