Pag-Ibig cuts home loan rates to as low as 4.5%

MANILA, Philippines – The Pag-Ibig Fund has cut housing loan rates to as low as 4.5 percent for homes priced above the socialized housing ceiling, offering qualified borrowers cheaper financing until the end of 2026.

In a statement on Thursday, Pag-Ibig said housing loans or installment payments above the socialized housing ceiling—currently set at P950,000 for house-and-lot units and P1.8 million for condominium units—up to the P2.5-million low-cost housing ceiling will carry an interest rate of 4.5 percent per annum.

READ: Pag-Ibig rolls out P10K emergency loan amid ME war fallout

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Meanwhile, Pag-IBIG will charge a 5.75% annual interest rate on loans above P2.5 million up to P10 million.

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Pag-IBIG will fix both promotional rates for three years before repricing the loans based on the borrower’s chosen repricing period.

The state-run fund said the lower rates would translate to smaller monthly payments for borrowers during the initial years of their loans.

For instance, a P2.5-million housing loan payable over 30 years would have a monthly amortization of about P12,667, or roughly P2,700 less than under the previous 6.25% rate.

“We know that buying a home is one of the biggest and most important decisions a family will make,” Pag-IBIG Fund Chief Executive Officer Marilene Acosta said.

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“By lowering our three-year fixed rates from 6.25 percent to as low as 4.5 percent, we are helping our members save on their monthly amortization during the first three years of their loan. These savings can help families manage their daily needs, or even be set aside in their Pag-IBIG Regular Savings or MP2 Savings so they can better prepare for the future while taking the important step toward owning a home,” she added.

Qualified members may avail themselves of the promotional rates for housing loan and acquired-assets installment applications filed until Dec. 31, 2026. /pai INQ

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