Pag-Ibig cuts socialized housing loan rate to 3%
The Home Development Mutual Fund, or Pag-Ibig Fund, announced on Friday a new “special subsidized” interest rate to make socialized housing more accessible, as part of the government’s push to expand affordable homeownership.
In a statement, Pag-Ibig said a special 3-percent interest rate would apply to the first five years of housing loans under the Expanded Pambansang Pabahay para sa Pilipino (Expanded 4PH) Program.
The rate is available to eligible first-time homebuyers from the lowest income segments up to the seventh income decile—those earning below P47,856 per month in Metro Manila and P34,686 in other regions.
Overseas Filipino Workers are also qualified to avail themselves of the program.
The subsidized rate will apply to the purchase of socialized housing units, including house-and-lot packages priced up to P850,000 and condominium units worth up to P1.8 million.
It may also be used to finance the purchase of Pag-Ibig-acquired assets priced within those ceilings.
Beneficiaries of the program may also avail themselves of additional financing of up to P100,000 for home improvements, including utility connections and basic fixtures.
There is also a 100-percent loan-to-value ratio, meaning borrowers are not required to provide cash equity.
For his part, Housing Secretary Jose Ramon Aliling highlighted private sector support, noting that developers have committed to building over 250,000 socialized housing units nationwide under the Expanded 4PH Program.
“Together with the enhancements under the Expanded 4PH Program, which now covers both vertical and horizontal housing developments, Pag-Ibig Fund’s wider home financing options ensure that more Filipinos can finally achieve homeownership,” Aliling said.
Meanwhile, Pag-Ibig Fund CEO Marilene Acosta said the agency’s ability to offer low interest rates was driven by its strong collection efficiency, which removes the need for external borrowing.
She added that the initiative supports Pag-Ibig Fund’s 10-year plan to deliver double-digit dividends on members’ savings, while ensuring that half of its housing loan portfolio carries a 3-percent interest rate through efficient asset management.
“This initiative significantly advances our goal of making Pag-Ibig Fund even more impactful in the lives of Filipino workers,” Acosta added.
