Pag-IBIG Fund has increased its maximum housing loan amount per borrower to P10 million, a move aimed at expanding access to affordable home financing for middle-income and higher-earning Filipino workers while helping absorb the growing supply of available housing units, particularly in Metro Manila and other highly urbanized areas.
The adjustment, announced on Tuesday, strengthens the Expanded Pambansang Pabahay para sa Pilipino (Expanded 4PH) program by allowing more members to finance homes beyond the socialized housing segment through long-term, low-cost loans.
The higher loan ceiling complements Pag-IBIG’s continued offering of a subsidized 3-percent housing loan rate for qualified socialized housing borrowers, ensuring that support remains in place for low-income members while expanding options for other income groups.
Department of Human Settlements and Urban Development Secretary Jose Ramon P. Aliling, who also chairs the Pag-IBIG Fund Board of Trustees, said the move is intended to make homeownership more inclusive across income brackets.
“With the higher ₱P10-million loan ceiling, Pag-IBIG Fund can now serve more members, especially Filipino workers who seek homes in higher price segments but still require long-term and affordable financing to own homes near their workplaces, schools, and sources of livelihood,” Aliling said.
He said the adjustment is also designed to address the oversupply of ready-for-occupancy condominium units in Metro Manila and other urban centers, where take-up has slowed despite strong inventory.
“This is also our call to developers: let us make the numbers meet. Pag-IBIG Fund is expanding the financing available to qualified borrowers,” he said, urging developers to recalibrate pricing and offer more accessible packages to align with members’ borrowing capacity.
Pag-IBIG Fund CEO Marilene C. Acosta said the higher loan ceiling reflects the agency’s mandate to serve Filipino workers across all income segments, supported by its strong financial position.
“At Pag-IBIG Fund, our mandate is to serve all Filipino workers,” Acosta said. “Because of our strong financial position, we are able to offer a higher loanable amount while keeping our housing loan rates among the lowest in the market.”
She said qualified borrowers may now access long-term financing of up to 30 years, with interest rates as low as 5.75 percent per year, depending on the chosen fixing period, while socialized housing borrowers will continue to benefit from the 3-percent subsidized rate under the Expanded 4PH Program.
Beyond expanding access, Acosta said the program is also designed to make homeownership a more practical alternative to renting, particularly in urban areas where rental costs continue to rise.
“For many families, rent is one of their biggest monthly expenses,” she said. “Through Pag-IBIG Fund’s affordable housing loan terms, monthly amortizations for reasonably priced homes can be lower than the rent in many urban areas.”