Pag-IBIG Fund has rolled out promotional housing loan rates for members purchasing homes above the socialized housing ceiling, reducing borrowing costs for loans of up to P10 million.

Under the program, housing loans above the socialized housing ceiling up to P2.5 million will carry an interest rate of 4.5 percent per year, fixed for three years. 

Loans above P2.5 million up to P10 million will have a 5.75-percent annual interest rate, also fixed for three years. After the fixed period, rates will be repriced based on the borrower’s chosen repricing term.

The promotional rates follow Pag-IBIG’s earlier move to increase its maximum housing loan amount to P10 million per borrower.

Housing Secretary Jose Ramon Aliling said the initiative aims to make home financing more accessible, particularly for middle-income members seeking larger housing loans.

Pag-IBIG CEO Marilene Acosta said the reduced rates would translate to lower monthly amortizations during the first three years of a loan.

For a P2.5-million loan payable over 30 years, the estimated monthly amortization would be about P12,667 under the new 4.5-percent rate, compared with about P15,393 under the previous 6.25-percent rate.