05/08/2025
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Pag-IBIG Fund rolls out special 3% loan rate under Expanded 4PH to make housing more affordable
Pag-IBIG Fund announced Friday, July 25, that it is offering a special subsidized interest rate of 3 percent per annum for the first five years of housing loans under the Expanded Pambansang Pabahay para sa Pilipino (Expanded 4PH) Program. 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, for the purchase of socialized housing units — which now include house-and-lot units, condominium units, and Pag-IBIG Acquired Assets.
The initiative supports President Ferdinand R. Marcos Jr.’s directive to expand access to affordable and dignified housing, in line with the administration's Bagong Pilipinas vision.
“We are pleased to report that Pag-IBIG Fund has once again stepped forward in its commitment to helping more Filipinos secure dignified homes,” said Secretary Jose Ramon P. Aliling, head of the Department of Human Settlements and Urban Development (DHSUD) and chairperson of the Pag-IBIG Fund Board of Trustees. “Together with the enhancements under the Expanded 4PH Program - which now covers both vertical and horizontal housing developments - Pag-IBIG Fund’s wider home financing options ensure that more Filipinos can finally achieve homeownership. This is our solid commitment to President Marcos’ vision of providing decent shelter through a sustainable housing program under the Bagong Pilipinas banner.”
Aliling also cited the support from the private sector, noting that developers have committed to building more than 250,000 socialized housing units nationwide under the Expanded 4PH Program, significantly accelerating the government’s housing efforts.
Under the Pag-IBIG Housing Loan for the Expanded 4PH Program, first-time homebuyers - particularly those earning less than 47,856 pesos per month in the National Capital Region and less than 34,686 pesos outside NCR - may avail of the subsidized 3 percent interest rate for the first five years of the loan. All overseas Filipino workers, regardless of income, also qualify for the special rate. The loan may be used to purchase quality socialized house-and-lot units and condominium units under accredited Expanded 4PH projects, priced up to 850,000 pesos and 1.8 million pesos, respectively. It may also be used to purchase Pag-IBIG Acquired Assets with net selling prices that fall within these ceilings. The program further offers additional financing of up to 100,000 pesos for home improvements, such as utility connections and home fixtures, and provides a 100 percent loan-to-value ratio, meaning borrowers are not required to provide cash equity.
Pag-IBIG Fund Chief Executive Officer Marilene C. Acosta emphasized that the agency’s ability to offer low interest rates stems from its strong collection efficiency, eliminating the need for external borrowing. She added that the initiative aligns with Pag-IBIG Fund’s 10-year plan to deliver double-digit dividends on members’ savings while allocating half of its housing portfolio to loans with a 3% interest rate through efficient asset management.
“We at Pag-IBIG Fund remain fully committed to fulfilling our twin mandates: promoting savings and providing affordable home financing for Filipino workers,” Acosta said. “Our robust financial position allows us to extend this special subsidized rate under the Expanded 4PH Program, enabling even more members - including private-sector workers, government employees, uniformed personnel, OFWs, self-employed individuals, and informal-sector workers - to achieve sustainable homeownership. This initiative significantly advances our goal of making Pag-IBIG Fund even more impactful in the lives of Filipino workers, fully supporting President Marcos’ vision of a Bagong Pilipinas.”
