Pag-IBIG launches 3% loan rate under Expanded 4PH

Pag-IBIG Fund has introduced a special 3% interest rate on housing loans under the Expanded Pambansang Pabahay para sa Pilipino (Expanded 4PH) Program, aiming to make homeownership more accessible for low- and middle-income Filipinos.

The subsidized rate is fixed for the first five years of the loan term and applies to eligible Pag-IBIG members from the lowest income segments up to the seventh income decile, as well as all overseas Filipino workers (OFWs).

The special offer covers the purchase of socialized housing units, including house-and-lot packages, condominium units, and Pag-IBIG Acquired Assets.

Announced on July 25, the initiative aligns with the Bagong Pilipinas governance agenda to provide affordable, dignified, and sustainable housing for every Filipino family.

“We are pleased to report that Pag-IBIG Fund has once again stepped forward in its commitment to helping more Filipinos secure dignified homes,” said Secretary Jose Ramon P. Aliling, head of the Department of Human Settlements and Urban Development (DHSUD) and chairperson of the Pag-IBIG Fund Board of Trustees.

“Together with the enhancements under the Expanded 4PH Program—which now covers both vertical and horizontal housing developments—Pag-IBIG Fund’s wider home financing options ensure that more Filipinos can finally achieve homeownership,” he added.

“This is our solid commitment to President Marcos’ vision of providing decent shelter through a sustainable housing program under the Bagong Pilipinas banner.”

The Expanded 4PH Program is a flagship housing strategy under the Marcos administration, aimed at addressing the country’s estimated housing backlog of over 6.5 million units by increasing supply, improving affordability, and partnering with private developers.

Aliling also emphasized the role of the private sector, revealing that developers have pledged to build more than 250,000 socialized housing units nationwide, accelerating progress toward the government’s targets.

The subsidized loan rate is expected to reduce monthly amortizations significantly for qualified borrowers, making it easier for families to transition from renting to owning homes.

With typical Pag-IBIG interest rates for socialized housing ranging from 4.5% to 6.5%, the new 3% rate represents a substantial reduction in borrowing costs, especially over the first five years of the loan term.

The offer is part of a broader effort to empower low-income earners, especially informal workers and OFWs, many of whom remain locked out of traditional mortgage financing due to limited financial capacity or credit access.

Pag-IBIG Fund, the country’s leading government-run home financing agency, reported record-high loan releases in recent years, with over PHP 126 billion disbursed in 2024, benefiting more than 100,000 members.

Under the Expanded 4PH Program, more than 1 million housing units are targeted for construction by 2028, as part of the administration’s vision for inclusive and livable urban communities.

Eligible borrowers are encouraged to apply through Pag-IBIG branches or partner developers to avail of the special interest rate, subject to standard loan application requirements.