MANILA, Philippines — In a major bid to expand housing access for middle-class and low-income Filipino workers, the Home Development Mutual Fund has slashed its financing rates. Pag-IBIG Fund is introducing highly competitive promotional housing loan rates for properties priced above the standard socialized housing ceiling up to a maximum tier of ₱10 million.
The new pricing matrix operates under the umbrella of President Ferdinand R. Marcos Jr.’s Expanded Pambansang Pabahay para sa Pilipino (4PH) Program, giving workers significantly cheaper borrowing terms to match their growing family needs.
The promotional program specifically targets homes that exceed socialized caps but still fall within manageable low-to-mid cost brackets. Jose Ramon P. Aliling—Secretary of the Department of Human Settlements and Urban Development (DHSUD) and Chairman of the Pag-IBIG Fund Board—confirmed that the subsidized structures are designed to stimulate real estate demand and protect household budgets.
The new interest rates are firmly locked into specific structural brackets:
[ PAG-IBIG EXPANDED 4PH RATE MAP ]
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[ THE 4.5% MID-LOW BRACKET ] [ THE 5.75% ACQUISITION TIER ]
• **The Covered Ceiling:** Applies to home loans tracking above the • **The High-Value Extension:** Applies to premium property loans
socialized limit (₱950k for house-and-lot units; ₱1.8M for condos) • tracking above the ₱2.5 million low-cost threshold all the
up to the **₱2.5 million** low-cost housing marker. • way up to the newly expanded **₱10 million** borrower cap.
• **Fixed Safety Buffer:** The **4.5 percent interest per annum** is • **Middle-Class Cushion:** Features a fixed **5.75 percent interest
rigidly fixed for an initial three-year block before repricing.** • per annum**, similarly locked for the first three years.
According to Pag-IBIG Fund Chief Executive Officer Marilene C. Acosta, the adjusted pricing will provide immediate, tangible relief through drastically lowered monthly bills.
A comparative breakdown of a standard 30-year payment term highlights how much liquidity is being handed back to home buyers under the promotional cuts:
| Loan Principal Amount | Amortization under Previous Rate (6.25%) | Amortization under Promo Rate | Projected Monthly Cash Savings |
| ₱2.5 Million Loan (Low-Cost) | ₱15,393 / month | ₱12,667 / month (At 4.50%) | ₱2,726 saved per month |
| ₱10.0 Million Loan (Expanded) | ₱61,572 / month | ₱58,357 / month (At 5.75%) | ₱3,215 saved per month |
The Structural Advantage: “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,” Acosta emphasized. “These savings can help families manage their daily needs, or even be set aside in their Pag-IBIG Regular Savings or MP2 Savings.”
The promo complements Pag-IBIG’s foundational 3 percent subsidized housing loan rate reserved exclusively for bottom-tier, low-income socialized housing borrowers. The state framework has officially mapped out an entry window for members looking to secure these rates:
[ THE EXPANDED 4PH PROMOTIONAL ENTRY CORRIDOR ]
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[ Eligible Targets ] ──► The promotional interest rates apply directly to standard **Pag-IBIG Housing Loans**
and the group's **Acquired Assets Long-Term Installment Payment** frameworks.
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[ Firm Cutoff Date ] ──► Qualified borrowers must file their formal paperwork and have their packages officially
received by the agency on or before **December 31, 2026**.
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[ Post-3 Year Shift ]──► Once the initial three-year promotional fixed period expires, the loans will transition into standard
market repricing structures based on the borrower's chosen lock-in cycle options.
Interested Pag-IBIG members can check property eligibilities, calculate customized amortization horizons, or submit their applications through the Virtual Pag-IBIG online portal or by visiting any nearby branch hub nationwide.
