Pag-IBIG promo rates, higher loan ceiling help lower monthly payments amid higher lending rates

Heeding President Ferdinand R. Marcos, Jr.’s directive to make homeownership more accessible to Filipino workers under the Expanded Pambansang Pabahay para sa Pilipino Program (Expanded 4PH), Pag-IBIG Fund continues to offer more affordable home financing options through its 3% subsidized rate for eligible socialized housing borrowers, ongoing promotional rates of 4.5% and 5.75% for low-cost to open-market homes, and higher maximum housing loan amount of P10 million, officials said.

Department of Human Settlements and Urban Development Secretary Jose Ramon P. Aliling, who also chairs the Pag-IBIG Board of Trustees, said the agency’s subsidized rate of 3% per annum for eligible socialized housing borrowers, and promotional rates of 4.5% and 5.75% per annum for low-cost to open-market homes, cater to a broader market, from minimum-wage earners to middle-income workers, by keeping 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,” Mr. 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’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 P950,000 with monthly amortization as low as P4,005, while qualified members may avail themselves of the 4.5% promo rate for low-cost housing loans above the socialized housing threshold up to P4.9 million, and the 5.75% promo rate for loans above P4.9 million up to P10 million.

“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,” Mr. 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 promo 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 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,” Ms. 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’s performance so far in 2026 as the foundation for these better housing terms. In the first five months of the year alone, members entrusted Pag-IBIG with P90.24 billion in savings, even as the agency released P55.26 billion in housing loans that financed 34,641 homes. These results, together with Pag-IBIG’s strong asset base and fiscal standing, further strengthen its capacity to sustain below-market housing loan rates while delivering competitive returns to members.

Ms. Acosta said this ability to make home financing more affordable while protecting members’ savings reflects the disciplined balance at the core of Pag-IBIG’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,” Ms. 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.”

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