The government’s decision to raise the maximum Pag-IBIG housing loan to P10 million is expected to do more than help Filipinos buy homes.
Housing officials say it could also provide a fresh boost to economic activity by stimulating demand across a wide range of industries.
The Department of Human Settlements and Urban Development (DHSUD) welcomed the higher loan ceiling, saying the expanded financing program will make
homeownership more accessible, particularly for middle-income earners looking to purchase homes and condominium units in urban areas where property prices have climbed sharply in recent years.
DHSUD Secretary Jose Ramon Aliling said the move strengthens President Ferdinand Marcos Jr.’s Expanded Pambansang Pabahay para sa Pilipino (4PH) Program by allowing more families to qualify for larger housing loans.
“Through the higher Pag-IBIG loan ceiling, we are expanding the reach of the Expanded 4PH Program so that more Filipinos can own homes,” Aliling said.
The housing chief expects the increase to drive stronger demand for residential properties, especially in Metro Manila and nearby growth centers where rising property values have pushed housing beyond the reach of many workers and professionals.
The policy could also provide relief to developers carrying unsold housing inventory, a segment that has expanded in recent years as elevated interest rates and affordability concerns tempered buyer demand.
Beyond the property sector, Aliling said housing investments generate ripple effects throughout the economy. New residential projects create jobs and business opportunities not only in construction but also in manufacturing, transportation, retail, furniture, appliances, and other support industries.
“At the same time, housing investments help drive economic activity because many sectors benefit from new developments,” he said.
The revised Pag-IBIG program allows qualified members to borrow up to P10 million with repayment terms of as long as 30 years, subject to standard credit evaluation requirements.
Aliling also urged developers to support the initiative by offering more competitive housing packages, saying a combination of accessible financing and affordable housing supply would help translate stronger borrowing power into actual homeownership.
For the government, the higher loan cap represents more than a housing measure. It is also a bet that homebuilding can remain a powerful engine of economic growth.
