Pag-IBIG keeps low housing loan rates

Pag-IBIG Fund will maintain its low interest rates on housing loans through June 2025, continuing to offer affordable home financing despite rising market lending rates, fund officials announced Thursday.

This marks the second consecutive year the agency has maintained its rates in the face of rising financial pressures in the market.

The agency will keep its three-year repricing period at 6.25 percent per annum and its one-year repricing period at an even lower 5.75 percent.

This is in contrast to market rates, which range from 6.82 percent to 7.94 percent, with effective rates between 7.18 percent and 8.78 percent as of 29 January 2025. Despite these increases, Pag-IBIG’s affordable rates remain a beacon for Filipinos looking to own a home.

Pag-IBIG’s Affordable Housing Program also continues to offer a special 3-percent interest rate per annum for minimum wage earners, which is the lowest available rate in the housing market today, ensuring that low income workers have access to affordable housing.

“We recognize the importance of affordable home financing for Filipino workers. Thanks to Pag-IBIG Fund’s strong fiscal management, we can consistently offer rates that are within reach, helping more members achieve homeownership,” said Secretary Jose Rizalino L. Acuzar, head of the Department of Human Settlements and Urban Development and chair of the Pag-IBIG Fund Board of Trustees.

Acuzar highlighted the alignment of these efforts with President Ferdinand Marcos Jr.’s directive to address the housing needs of Filipinos.

Pag-IBIG CEO Marilene C. Acosta noted that the agency’s ability to maintain these rates is due to its efficient operations, a record-high performing loans ratio of 93.72 percent, and robust loan collections.

“We posted a record-high performing loans ratio of 93.72 percent at the end of last year, which means most of our members are diligently paying their home loans. This, combined with the quality of our investment portfolio, allows us to finance housing loans without needing to borrow externally,” Acosta said.

The efficient operation helps insulate members from rising market interest rates, directly benefiting borrowers.

She emphasized the financial advantages of Pag-IBIG loans, noting that the interest rates remain lower than the dividends earned on members’ savings, allowing them to grow their funds while financing their homes.

“As administrators of the workers’ fund, we remain deeply committed to providing affordable home loans and competitive dividends, empowering our members to achieve homeownership and a better life,” Acosta said.

This effort exemplifies Pag-IBIG Fund’s Lingkod Pag-IBIG Brand of Service — Tapat na Serbisyo, Mula sa Puso, ensuring that Filipinos continue to have access to affordable and sustainable housing options.