The government is making homeownership more affordable after the Home Development Mutual Fund (PAG-IBIG Fund) lowered housing loan interest rates and doubled down on financing support by increasing the maximum loan amount to P10 million.
Speaking at a Palace briefing on Wednesday, Presidential Communications Office Undersecretary and Palace Press Officer Claire Castro said the enhanced loan packages form part of President Ferdinand R. Marcos Jr.’s directive to expand access to affordable housing under the Expanded Pambansang Pabahay para sa Pilipino (4PH) Program.
“Kahit ano pa ang budget mo, may house financing option na angkop para sa iyo! Naging posible ang mga hakbang na ito dahil sa maingat na pagma-manage ng pondo at pagpapahiram ng pera ng PAG-IBIG sa mga miyembro nito,” Castro said.
Under the revised program, PAG-IBIG reduced the subsidized interest rate for socialized housing loans to 3 percent, while promotional rates were lowered to 4.5 percent for low-cost housing and 5.75 percent for open-market housing, easing monthly amortizations for borrowers.
The agency also raised the maximum housing loan to P10 million, allowing members to finance higher-value properties and giving them access to a wider range of housing options.
The enhanced financing package comes as the government seeks to narrow the country’s housing backlog by making formal home financing more accessible, particularly to low- and middle-income families. Lower borrowing costs and a higher loan ceiling are expected to improve housing affordability while stimulating demand for residential developments.
Castro said the improved loan terms were made possible by PAG-IBIG Fund’s strong financial position and prudent management, enabling it to offer more competitive financing without compromising the sustainability of its lending operations.
The Palace said the latest measures reinforce the administration’s broader housing agenda by expanding access to affordable, flexible, and sustainable financing, supporting both homebuyers and the continued growth of the country’s housing sector.
