4PH home buyers get low 4.5% on loans

To back participants in the Marcos administration’s flagship shelter program, the Expanded Pambansang Pabahay para sa Pilipino (4PH), the Pag-IBIG Fund will offer a special 4.5-percent housing loan rate to qualified members seeking to purchase house-and-lot packages worth up to P1.8 million.

The special rate will start in October as the agency joins the nationwide celebration of National Shelter Month.

Under the program, the first 10,000 housing loan applications from locally employed members and 1,000 applications from overseas Filipino workers will enjoy the subsidized 4.5-percent annual interest rate, fixed for the first three years of the loan.

In comparison, the average lending rate for similar loans is 6.25 percent.

“We continue to heed the call of President Ferdinand R. Marcos Jr. to provide affordable and inclusive housing for every Filipino family,” said Department of Human Settlements and Urban Development Secretary Jose Ramon Aliling, who also chairs the Pag-IBIG Fund Board of Trustees.

“Just last July, we introduced a subsidized three-percent rate for the first five years of loans for socialized housing units. Now, we are further expanding access to affordable home financing by offering a special rate for loans of up to P1.8 million which exceeds the socialized housing ceiling. This is another important step in broadening access to dignified and sustainable homeownership,” Aliling said.

Middle-class rates

New homebuyers may qualify for the concessional rates if they are active Pag-IBIG Fund members with at least 12 months of savings.

The program is open to members earning less than P47,856 per month in the National Capital Region and less than P34,686 per month in areas outside the NCR. All overseas Filipino workers, regardless of income, also qualify.

Loan proceeds may be used to purchase a residential house and lot, a residential lot, to construct or finish a home, for home improvement, or to purchase a Pag-IBIG Fund Acquired Asset.

Pag-IBIG Fund CEO Marilene C. Acosta said the special rate would allow members to save nearly P2,000 per month, or about P71,000 over the first three years of a P1.8-million loan payable in 30 years.

Under this offer, the monthly amortization at the promotional rate of 4.5 percent is only P9,120.34, compared to P11,082.91 at the regular 6.25-percent rate.

“This program makes even non-socialized housing more affordable and responds to the needs of Filipino families who prefer house-and-lot units that offer more space, privacy, and long-term value,” Acosta said.

“Through this initiative, we not only provide substantial savings, we turn their dream of homeownership into reality. This effort supports President Marcos’ vision of a better, more secure life for every Filipino. At Pag-IBIG Fund, we remain committed to serving our members with compassion, efficiency and integrity, because every Filipino deserves a home, they can truly call their own,” she said.