For many Filipino workers, the question is no longer only whether they can afford to buy a home, but also whether the monthly payment fits within the family budget.

Pag-IBIG Fund is seeking to answer that concern with its new tiered housing loan rates under President Ferdinand Marcos Jr.’s Expanded Pambansang Pabahay para sa Pilipino, or Expanded 4PH Program, offering lower rates for borrowers buying homes across socialized, low-cost, medium-cost and open-market housing packages.

The rates are structured across three price bands, anchored by the 3% subsidized rate for socialized housing and complemented by promotional rates for low-cost, medium-cost and open-market homes. The promotional rates for homes above socialized housing are available for applications filed on or before Dec. 31, 2026.

Department of Human Settlements and Urban Development Secretary Jose Ramon P. Aliling, who chairs the Pag-IBIG Fund Board of Trustees, said the tiered rates support President Marcos’ directive to make decent and affordable housing accessible to more Filipino families.

“Our 3% rate for socialized housing has already helped bring homeownership closer to many minimum-wage earners. With these new promotional rates, we are extending that opportunity to more Filipino workers and their families,” Aliling said.

Socialized housing: 3% subsidized rate

At the base of the new tiered structure is Pag-IBIG Fund’s 3% per annum subsidized rate for socialized housing.

This covers horizontal developments, or house-and-lot units, priced up to 950,000, and vertical developments, or condominium units, priced up to 1.8 million. For vertical developments in the National Capital Region and other highly urbanized cities, the socialized housing ceiling may reach up to 2 million.

The 3% subsidized rate is the program’s strongest affordability feature, designed to bring monthly payments within reach of minimum-wage earners and first-time homebuyers.

What makes the offer even more compelling is Pag-IBIG Fund’s Early Bird Promo. Under the promo, the first 30,000 first-time homebuyers may enjoy a 3% subsidized rate for the first 10 years of their loan term, giving families a longer period of lower, more predictable monthly payments as they settle into their new homes.

For a borrower taking out a P950,000 housing loan payable over 30 years, the 3 percent rate is equivalent to monthly payments of about 4,005. For many minimum-wage earners and young families, that can mean the difference between postponing homeownership and finally moving into a home of their own.

Low-cost housing: 4.5% promotional rate

For low-cost housing packages priced above the socialized housing ceiling up to P4.9 million, Pag-IBIG Fund is offering a 4.5 percent promotional rate fixed for the first three years of the loan.

This tier covers homes above socialized housing, including economic housing and Level 2/3 housing packages, giving members more options beyond entry-level units while keeping monthly payments more manageable.

Under Pag-IBIG Fund’s promotional loan terms, a P2.5 million housing loan payable over 30 years at 4.5 percent is equivalent to monthly payments as low as 12,667. By comparison, a loan computed using standard commercial rates and the 20-year maximum term commonly used by commercial lenders has monthly payments of about 20,140.

That gap highlights how much easier the monthly obligation can become for families hoping to move from renting to owning. The difference can help cover moving costs, basic appliances, school expenses, or additional family savings while they settle into their new home.

Medium-cost and open-market housing: 5.75% promotional rate

For homes priced between P4.9 million and P10 million, the Pag-IBIG Fund is offering a 5.75 percent promotional rate, also fixed for the first three years.

This tier covers medium-cost housing packages priced between P4.9 million and P6.6 million, as well as open-market homes priced above P6.6 million and within the Pag-IBIG Fund’s housing loan ceiling of P10 million.

Under Pag-IBIG Fund’s promotional loan terms, a P5 million housing loan payable over 30 years at 5.75 percent is equivalent to monthly payments as low as P29,179. By comparison, a loan computed at usual commercial rates and the 20-year maximum term commonly used by commercial lenders would have monthly payments of about P40,280.

For borrowers eyeing a higher-value home, that difference can translate into greater breathing room in the monthly household budget during the first three years of the loan.

The new tier also reflects Pag-IBIG Fund’s higher housing loan ceiling of P10 million, giving members more room to choose homes that match their needs, income, and family situation.

Applications under the 4.5 percent and 5.75 percent promotional rates must be filed on or before 31 December 2026.

Savings for a better future

Pag-IBIG Fund Chief Executive Officer Marilene C. Acosta said the lower monthly payments are intended to give Filipino workers more room in their household budgets as they build a better life for their families.

“Our goal is to make homeownership more affordable for more Filipino workers, while helping them keep more of their hard-earned money for their savings, their families and their future,” Acosta said. “With these lower monthly payments, we are making borrowing more affordable despite current market conditions.”

Acosta said Pag-IBIG Fund can offer lower rates because of its strong fiscal position and prudent management of its funds, allowing the agency to provide affordable home financing while protecting its members’ savings.

“Pag-IBIG Fund can offer these lower rates because of our strong fiscal position and prudent management of our funds. This is how we heed the call of President Marcos to make decent and affordable homes more accessible to Filipino families, while ensuring that our members’ savings remain safe and well-managed,” Acosta said.