Pag-IBIG lowers home loan rates under Expanded 4PH program

Pag-IBIG Fund has introduced promotional housing loan rates of as low as 4.5 percent for members purchasing homes worth up to P10 million, expanding affordable homeownership opportunities under President Ferdinand R. Marcos Jr.'s Expanded Pambansang Pabahay para sa Pilipino (4PH) Program.

The initiative follows the agency's earlier decision to raise its maximum housing loan amount to P10 million per borrower, giving members greater flexibility in choosing homes that fit their needs and financial capacity.

Department of Human Settlements and Urban Development Secretary and Pag-IBIG Fund Board Chairman Jose Ramon P. Aliling said the new rates support the administration's efforts to widen access to affordable housing.

"We continue to heed the directive of President Marcos to make decent and affordable homes more accessible to Filipino families," Aliling said.

He noted that the Expanded 4PH Program already offers a three percent subsidized housing loan rate for eligible socialized housing borrowers and now extends additional support to middle-income workers through lower promotional rates.

Under the program, housing loans above the socialized housing price ceiling but up to the P2.5 million low-cost housing limit will carry an interest rate of 4.5 percent per annum, fixed for three years.

Meanwhile, loans exceeding P2.5 million up to P10 million will have a promotional interest rate of 5.75 percent per annum, also fixed for three years. After the fixed period, the loan will be repriced based on the borrower's selected repricing schedule.

Pag-IBIG Fund Chief Executive Officer Marilene C. Acosta said the lower rates translate into significant monthly savings for borrowers.

A P2.5 million loan payable over 30 years will have an estimated monthly amortization of P12,667 under the new 4.5 percent rate, compared with P15,393 under the previous 6.25 percent rate, resulting in monthly savings of about P2,726.

For a P10 million loan payable over 30 years, the estimated monthly amortization drops to P58,357 from P61,572 under the previous rate, saving borrowers around P3,215 per month.

"By lowering our three-year fixed rates from 6.25 percent to as low as 4.5 percent, we are helping our members save on their monthly amortization during the first three years of their loan," Acosta said.

She added that the savings could be used for daily household expenses or invested in Pag-IBIG Regular Savings or MP2 Savings to strengthen families' long-term financial security.

The promotional rates are available for qualified members applying for Pag-IBIG Housing Loans and Pag-IBIG Acquired Assets Long-Term Installment Payment programs until 31 December 2026.