Pag-Ibig Fund extends low housing loan rates until June
The government corporation overseeing the national savings program has announced the extension of its low-cost housing loans until June 2025, keeping borrowing costs steady for the second consecutive year despite rising market rates.
The Home Development Mutual Fund, more commonly known as the Pag-Ibig Fund, said their officials confirmed the decision on March 27.
The government-owned and controlled corporation under the Department of Human Settlements and Urban Development (DHSUD) said this measure emphasizes their commitment to keeping homeownership within reach for more Filipino workers.
The agency said it would maintain its three-year repricing period at 6.25 percent a year and its one-year repricing period at an even lower rate of 5.75 percent a year.
Below market rates
It said these rates stand significantly below current market home loan rates, which range from 6.82 percent to 7.94 percent, with effective rates between 7.18 percent and 8.78 percent as of late January 2025.
For minimum-wage earners, it said that their affordable housing program would continue to provide a special 3-percent interest rate a year, the lowest in the market.
“We recognize the importance of affordable home financing for Filipino workers,” said Housing Secretary Jose Rizalino Acuzar, who is also the head of the 11-member Pag-IBIG Fund Board of Trustees.
“Thanks to Pag-IBIG Fund’s robust fiscal management, we can consistently provide our members with rates that are within their means and therefore open doors to homeownership for more members,” he added.
Acuzar said this effort aligns with President Marcos’ directive to address the housing needs of Filipinos.
Meanwhile, Pag-Ibig Fund chief executive officer Marilene Acosta highlighted that the agency’s ability to sustain low interest rates stems from its operational efficiencies, an increasing performing loans ratio, and strong loan payment collections.
“We posted a record-high performing loans ratio of 93.72 percent at the end of last year, meaning most of our members are diligently paying their home loans,” Acosta said.
“This, combined with the quality of our investment portfolio, allows us to finance housing loans without the need to borrow externally, shielding our members from rising market interest rates,” she added.
