Pag-IBIG offers subsidized 3% loan rate for socialized housing

State-run home mortgage firm Pag-IBIG Fund is offering a special subsidized interest rate of 3% for the first five years of housing loans under its Expanded Pambansang Pabahay para sa Pilipino (Expanded 4PH) Program, the agency said on Friday.

The initiative aims to significantly enhance housing affordability for a broader range of Filipinos, aligning with President Ferdinand R. Marcos Jr.’s "Bagong Pilipinas" vision for expanded access to dignified housing.

The special rate is available to eligible members from the lowest income segments up to the seventh income decile, as well as all overseas Filipino workers. It covers the purchase of socialized housing units, including house-and-lot units, condominium units, and Pag-IBIG Acquired Assets.

First-time homebuyers, particularly those earning below 47,856 pesos ($817) monthly in the National Capital Region and 34,686 pesos outside NCR, are eligible for the subsidized rate. Overseas Filipino workers qualify irrespective of income.

The loan can be used for quality socialized house-and-lot units up to 850,000 pesos and condominium units up to 1.8 million pesos under accredited 4PH projects, or Pag-IBIG Acquired Assets within these price ceilings. The program also offers up to 100,000 pesos for home improvements and a 100% loan-to-value ratio, eliminating the need for cash equity.

Pag-IBIG Fund CEO Marilene Acosta attributed the agency's ability to offer low interest rates to its strong collection efficiency, which she said negated the need for external borrowing. She reiterated the agency’s commitment to providing affordable home financing, asserting that the initiative will make sustainable homeownership accessible to a wider array of Filipino workers.