Pag-IBIG fund to maintain 3% of public housing rate under Expanded 4PH during Middle East conflict
The Pag-IBIG Fund said it will maintain its 3% annual interest rate for qualified housing loans under the Expanded Pambansang Pabahay para sa Pilipino Program, to keep home ownership affordable at a time when the conflict in the Middle East continues to destabilize global oil markets and cause oil price volatility.
This move supports the directive of President Ferdinand R. Marcos, Jr. to keep decent and affordable housing accessible to Filipino workers, especially those from the low and middle income sectors who want to achieve home ownership.
“In accordance with the directive of President Ferdinand R. Marcos, Jr., the Pag-IBIG Fund will maintain a 3% interest rate for qualified housing loans under the Expanded 4PH so that more Filipino workers can continue to pursue home ownership even in times of global uncertainty,” said Department of Human Settlements chairman and Urban Development Fund Board Secretary Aliling Ramon, Ramon, Ramon, Ramon. They are not trusted. “By keeping the monthly discount low, we are helping more working families protect their homes while supporting stable housing production and the jobs we create, in line with national efforts to keep the economy stable.”
Under the program, first-time home buyers, especially those earning less than P47,856 per month in the National Capital Region and below P34,686 without NCR, they can qualify for 3% subsidized rate for the first five years of the loan tenure. All overseas Filipino workers, regardless of their income, may be eligible. Separately, under the Pag-IBIG Fund’s Early Bird Promo, the first 30,000 qualified borrowers may enjoy the same rate of 3% for the first 10 years of their home loan, allowing them to save more and benefit from affordable and predictable monthly tax payments for a long time.
The loan amount can be used to purchase housing and residential units worth up to P950,000 and P1.8 million respectively. It also provides until P100,000 in additional financing for home improvements, such as connecting utilities and home appliances, and has a 100% loan-to-value ratio, meaning no equity is required. With these terms, the monthly deductions are about P4,005 per house unit and land cost to arrive P950,000 and approx P7,589 for the condominium unit that costs to arrive P1.8 million, the prices are lower than the monthly rental cost. In addition, eligible borrowers may benefit from additional subsidies provided by the national government, which may lower the annual interest rate to 1% and make monthly payments even lower.
Meanwhile, Pag-IBIG Fund chief executive officer Marilene C. Acosta said the retention of the 3% rate reflects Pag-IBIG Fund’s strong financial position and its continued commitment to implement President Marcos’ housing agenda in a way that keeps home ownership within easy reach of working Filipino families.
“We continue to heed the direction of President Marcos in helping to uplift the lives of Filipino workers by keeping home ownership accessible to those who need it most,” said Ms. Acosta. “Our strong financial position allows the Pag-IBIG Fund to keep the 3% subsidy rate in place so that more working Filipinos can continue to pursue home ownership under the Expanded 4PH.”
Ms. Acosta added that, beyond keeping loan rates low, the Pag-IBIG Fund also makes it easier and more affordable for members to look for a home through regional housing fairs that bring together high-quality homes available for sale, partner developers, and the financial support of the Pag-IBIG Fund in one place. Earlier this year, the Pag-IBIG Fund launched its series of regional housing fairs through the Central Luzon Housing Fair. Similar demonstrations are planned to be held in South Luzon, Visayas, Mindanao, and the National Capital Region in the coming weeks. The Central Luzon fair gathered more than 40 developers, financial institutions, and government agencies in one place and provided assistance on site for loan applications.
“Through these regional housing fairs, we make it easier and more affordable for members to find a home by bringing quality homes available for sale, partner developers, and Pag-IBIG Fund financing together in one place,” said Ms. Acosta. “That is how the Pag-IBIG Fund will continue to provide more Filipino families with viable options for homeownership, turning affordable subsidies into real home ownership opportunities.”
The Pag-IBIG Fund’s ability to support this support is supported by its record performance in housing debt in 2025, when we issue P140.54 billion in housing loans benefiting 90,727 Filipino workers and their families, demonstrating both its financial strength and its continued ability to help more members achieve home ownership.
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