Pag-IBIG keeps housing loan rates low amid market rise

Pag-IBIG Fund will keep its housing loan interest rates low through June 2025, continuing its efforts to provide affordable home financing despite rising market rates, officials announced Thursday.

The fund’s three-year repricing period remains at 6.25% per annum, while the one-year repricing period is set at 5.75%. Market reports show home lending rates ranging from 6.82% to 7.94%, with effective rates between 7.18% and 8.78% as of January 29, 2025.

Pag-IBIG's Affordable Housing Program also offers a special 3% interest rate for minimum-wage earners, the lowest available in the market.

Secretary Jose Rizalino L. Acuzar, head of the Department of Human Settlements and Urban Development, credited Pag-IBIG’s fiscal management for maintaining affordable rates. "This effort aligns with President Ferdinand Marcos Jr.’s directive to address the housing needs of our countrymen," he said.

CEO Marilene C. Acosta attributed the low rates to the fund's efficient operations, high performing loans ratio of 93.72%, and robust collections. "Our members' payments allow us to finance housing loans without borrowing externally, protecting them from rising market interest rates," she said.

Acosta also highlighted the financial benefits of Pag-IBIG housing loans, noting the interest rates remain lower than the dividends earned on members’ savings, contributing to their financial growth.