Pag-Ibig keeps 3% housing rate
The Pag-Ibig Fund will continue offering socialized housing loans at a 3-percent annual interest rate in response to household consumption shocks, one month into the escalating Middle East war.
This is the second time the fund has maintained the rate, following its January announcement to retain it amid higher price ceilings. The rate has been in place since July 2025 and applies to loans under the Expanded Pambansang Pabahay para sa Pilipino Program (Expanded 4PH).
Department of Human Settlements and Urban Development Secretary Jose Ramon Aliling said the move aims to provide Filipinos with affordable homeownership during a period of global uncertainty.
“By keeping monthly amortizations low, we are helping more working families secure a home of their own while supporting sustained housing production and the jobs it generates, in step with broader national efforts to keep the economy stable,” Aliling, who also chairs Pag-Ibig’s Board of Trustees, said.
First-time homebuyers earning less than P47,856 per month in Metro Manila and P34,686 outside the region are qualified for the subsidized rate for the first five years of the loan term. Overseas Filipino workers, regardless of income, are also eligible.
Meanwhile, the first 30,000 qualified borrowers under Pag-Ibig’s “Early Bird Promo” may enjoy the 3-percent rate for the first 10 years of their loan.
The loans can be used to purchase socialized house-and-lot units priced up to P950,000 and condominium units up to P1.8 million, with monthly amortizations of about P4,005 and P7,589, respectively.
Borrowers may also access up to P100,000 in additional financing for home improvements, such as utility connections and fixtures, under a 100-percent loan-to-value ratio.
Eligible borrowers may further benefit from government subsidies that can bring the interest rate as low as 1 percent.
Pag-Ibig Fund said its strong fiscal standing allows it to sustain the low rate, with its reserves rising 21 percent to P160.41 billion in 2025, the highest in the agency’s history. Housing loans released last year totaled P140.54 billion, benefiting 90,727 Filipino families.
