Pag-Ibig keeps housing interest rate at 3% 

Despite the government approving higher price ceilings for socialized homes, the Pag-Ibig Fund said it would maintain the 3-percent subsidized housing loan rate to keep monthly payments affordable.

In a statement, the fund said it was keeping the interest rate low to help qualified members afford homes that meet safety and quality standards—a key reason for the higher price ceilings.

“Our strong fiscal position allows us to continue offering subsidized rates under the Expanded Pambansang Pabahay para sa Pilipino (Expanded 4PH) Program so our members can truly achieve their dream of owning a home,” Pag-Ibig Fund CEO Marilene Acosta said.

The 3 percent housing loan rate, first implemented in July 2025, applies to the first five years of loans under the Expanded 4PH Program.

This can be extended for another five years, especially following the government’s decision to raise price ceilings for socialized housing.

The increase in price caps was formalized through new Implementing Rules and Regulations (IRR) issued by the Department of Human Settlements and Urban Development (DHSUD) and the Department of Economy, Planning and Development.

According to DHSUD Secretary Jose Ramon Aliling, the higher price ceilings will allow developers to “build better socialized housing units and sustain construction.”

“This strengthens the housing industry’s capacity to deliver more homes at scale, while keeping Expanded 4PH firmly focused on affordability to make homeownership more attainable for Filipinos,” Aliling said.

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Under the IRR, house-and-lot units now have maximum selling prices ranging from P844,440 to P950,000, depending on unit size.

Condominium projects with five floors or more are now capped at P1.8 million. In Metro Manila and other highly urbanized cities, eligible units may include an additional P200,000 based on zonal value, making some condos sell for up to P2 million.

With the 3-percent interest rate maintained, qualified borrowers would only pay around P4,005 per month for house-and-lot units priced up to P950,000, and about P8,432 per month for condominium units priced up to P2 million.

The first 30,000 qualified borrowers, through the fund’s “Early Bird Promo,” may enjoy the subsidized rate for the first 10 years of the loan.