Pag-IBIG promotional rates, high loan ceilings help reduce monthly payments among high lending rates

Obedience to the order of President Ferdinand R. Marcos, Jr. to make home ownership more accessible to Filipino workers under the Expanded Program of Pambansang Pabahay para sa Pilipino (Extended 4PH), the Pag-IBIG Fund continues to provide more affordable home financing options with its 3% subsidy rate for borrowers and 5% ongoing housing promotion. 5.75% down payment on homes in the open market, and a maximum mortgage loan amount of P10 million, officials said.

The Secretary of the Department of Human Settlements and Urban Development Jose Ramon P. Aliling, who is also the chairman of the Pag-IBIG Board of Trustees, said that the subsidy rate of this organization is 3% per year for those who borrow houses that live in the community, and promotion rates of 4.5% and 5.75% per year for low cost to the open market, from the market to small houses. middle-income workers, keeping monthly payments affordable.

“The Pag-IBIG advertising standards are about making home ownership more affordable at a time when many Filipino families are carefully weighing the cost of buying a home,” said Mr. He is not tempted. “By lowering the monthly payment, we help more workers qualify for housing subsidies, support the strong demand for housing and encourage more activity in the housing market.”

Under the Expanded 4PH, Pag-IBIG home loan rates are designed to help members in all income brackets. Eligible subsidized housing borrowers may qualify for a 3% subsidy rate, including a house and share worth P950,000 and a monthly payment as low as P4,005, while eligible members may qualify for a 4.5% subsidized rate for affordable housing loans above the subsidized housing threshold for more than P59 million, with a loan amount of up to at 59%. P4.9 million up to P10 million.

“Housing has a direct impact on the economy. Every funded house means working for builders, suppliers, transport providers, furniture makers, retailers and many other sectors connected to housing,” said Mr Aliling. “That's why affordable housing financing not only helps Filipino families but also helps create jobs, support businesses and drive the economy forward.”

Officials said the promotional rates provide eligible members with more affordable monthly payments, amid expectations that recent rate adjustments may lead to higher rates for commercial mortgages.

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 practices.

“We are able to offer these low 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 at record rates. That financial strength allows us to pass on real savings to borrowers with lower monthly payments, while continuing to grow the funds entrusted to our members.”

Officials pointed to Pag-IBIG's performance so far in 2026 as the basis for these better housing goals. In the first five months of the year alone, members entrusted Pag-IBIG with P90.24 billion in savings, just as the agency disbursed P55.26 billion in housing loans that financed 34,641 houses. These results, along with Pag-IBIG's strong asset base and financial position, further strengthen its ability to sustain below-market mortgage rates while delivering competitive benefits to members.

Ms. Acosta said this ability to make housing financing more accessible while protecting members' savings shows the right balance at the core of Pag-IBIG's dual mandate.

“Pag-IBIG's housing and savings activities are committed to one goal, to help Filipino workers build financial security and achieve home ownership,” said Ms. Acosta. “Every home loan we disburse is powered by our members' savings, while every peso we manage wisely keeps Pag-IBIG strong for the next family looking for a home. This balance allows us to deliver competitive savings benefits and affordable housing financing at the same time, because the strength of one mandate supports the other.”

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