Pag-IBIG Fund is set to offer a special 4.5 percent housing loan rate to qualified members seeking to purchase house-and-lot packages worth up to P1.8 million, as part of the Marcos Administration’s Expanded Pambansang Pabahay para sa Pilipino (4PH) Program. The promotional rate is expected to be available starting in October, as the agency joins the nationwide celebration of National Shelter Month.
Under the program, the first 10,000 housing loan applications from locally employed members and 1,000 applications from Overseas Filipino Workers will enjoy the subsidized 4.5 percent annual interest rate, fixed for the first three years of the loan. Once the program is implemented, eligible applications already in the pipeline will also be granted the special rate, in addition to the 11,000 slots.
The 4.5 percent rate is significantly lower than the current 6.25 percent for similar loans, making monthly payments more affordable for borrowers.
“We continue to heed the call of President Ferdinand R. Marcos Jr. to provide affordable and inclusive housing for every Filipino family,” said Department of Human Settlements and Urban Development Secretary Jose Ramon Aliling, who also chairs the Pag-IBIG Fund Board of Trustees. “Just last July, we introduced a subsidized 3 percent rate for the first five years of loans for socialized housing units. Now, we are further expanding access to affordable home financing by offering a special rate for loans of up to P1.8 million, which exceed the socialized housing ceiling. This is another important step in broadening access to dignified and sustainable homeownership.”
First-time homebuyers may qualify for the 4.5 percent promotional rate for loans of up to P1.8 million, provided they are active Pag-IBIG Fund members with at least 12 monthly savings. The program is open to members earning less than P47,856 per month in the National Capital Region, and less than P34,686 per month in areas outside NCR. All Overseas Filipino Workers, regardless of income, also qualify.
Loan proceeds may be used for the purchase of a residential house and lot, a residential lot, the construction or completion of a home, home improvement, or the purchase of a Pag-IBIG Fund Acquired Asset.
According to Pag-IBIG Fund Chief Executive Officer Marilene C. Acosta, the special rate allows members to save nearly P2,000 per month, or about P71,000 over the first three years of a P1.8 million loan payable over 30 years. Under this offer, the monthly amortization for this loan at the promotional rate of 4.5 percent is only P9,120.34, compared to P11,082.91 at the regular 6.25 percent rate.
“This program makes even non-socialized housing more affordable and responds to the needs of Filipino families who prefer house-and-lot units that offer more space, privacy and long-term value,” Acosta said. “Through this initiative, we not only provide substantial savings, we also help turn the dream of homeownership into reality. This effort supports President Marcos’ vision of a better, more secure life for every Filipino. At Pag-IBIG Fund, we remain committed to serving our members with compassion, efficiency and integrity, because every Filipino deserves a home they can truly call their own.”
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