Pag-IBIG Fund targets 3% loan rate

Pag-IBIG Fund aims to distribute home loans amounting to P156.86 billion this year.

Kathryn Jose·5 April 2025, 12:56 am·1 min read

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Pag-IBIG Fund CEO Marilene Acosta on Friday said the state-owned home loan provider aims to offer a low annual interest rate of 3 percent by 2035.

She said the rate will be applied to half of its loan portfolio.

“This means lower monthly payments and higher financial capacity for many families to meet their basic needs,” Acosta said during Pag-IBIG’s performance report delivered at Dusit Thani, Makati City.

For this year, Pag-IBIG Fund announced it will continue to lend at 5.75 percent for the one-year repricing and 6.25 percent per annum for the three-year repricing.

Compared to Pag-IBIG Fund, home loans from private lenders have remained pricey post-pandemic as private banks ensure sufficient protection for all their depositors.

Private universal and commercial banks have been lending at about 7 to 8 percent for a three-year term, according to Easy Property Match, an online property listing platform.

Pag-IBIG Fund aims to distribute home loans amounting to P156.86 billion this year. From this, 45 percent will be allocated to borrowers in Metro Manila and nearby areas, namely, Cavite and Bulacan.

The government agency targets to fund the construction of 111,648 housing units this year.

A substantial share of 41 percent or 46,230 housing units will be located in Metro Manila and nearby provinces, up by 17 percent from 39,430 units last year.

The Department of Human Settlements and Urban Development estimates a backlog of 10 million housing units by 2028 if housing projects are delayed.