Pag-IBIG Fund raises housing loan limit to ₱10M to serve more Filipino workers

MANILA, Philippines — The Home Development Mutual Fund (HDMF), commonly known as the Pag-IBIG Fund, has raised its maximum housing loan amount per borrower to ₱10 million in a bid to make the program more accessible, especially to middle-income and higher-earning Filipino workers particularly in Metro Manila and other highly urbanized areas. The increase in loan ceiling reflects the agency’s mandate to serve Filipino workers from all income segments under the national government’s ‘Pambansang Pabahay para sa Pilipino’ (4PH) program, Pag-IBIG Fund CEO Marilene Acosta said. “At Pag-IBIG Fund, our mandate is to serve all Filipino workers. This means serving first-time homebuyers and members who need subsidized support, as well as middle-income and higher-earning members who also need affordable long-term financing to buy homes for their families,” Acosta said in a statement emailed to The Manila Times. Citing Pag-IBIG’s strong financial position, she said it was able to offer a higher loanable amount while keeping its housing loan rates not only affordable, but among the lowest in the market. “With the higher loan ceiling, qualified borrowers now have even better access to home financing payable for up to 30 years, with interest rates that may go as low as 5.75 percent a year depending on their chosen fixing period,” the Pag-IBIG chief executive said. “More importantly, this allows us to widen the reach of the Expanded 4PH Program so that more members, across more income segments, can gain access to decent and affordable homes, while eligible socialized housing borrowers continue to benefit from the 3 percent subsidized rate,” she added. Moreover, the broader Pag-IBIG Housing Loan Program was intended to make homeownership a practical alternative to renting for more Filipino workers, especially when available housing units are offered at prices that match members’ income and borrowing capacity, Acosta said. “For many families, rent is already one of their biggest monthly expenses. Through Pag-IBIG Fund’s affordable housing loan terms, monthly amortizations for reasonably priced homes can be lower than rent in many urban areas. This is the value we want to give our members: instead of paying rent month after month, they can use their hard-earned income to pay for a home they can eventually call their own,” she emphasized. Department of Human Settlements and Urban Development (DHSUD) Secretary Jose Ramon Aliling said the higher loan ceiling complements the program’s ongoing subsidized 3 percent housing loan rate for qualified buyers of socialized housing, enabling Pag-IBIG Fund to serve more members seeking homes beyond the socialized housing segment through affordable long-term financing. The increase is part of the government’s broader effort to make homeownership more accessible to Filipino workers across income segments, said Aliling, who chairs Pag-IBIG’s board of trustees. “With the higher ₱10-million loan ceiling, Pag-IBIG Fund can now serve more members, especially Filipino workers who seek homes in higher price segments but still require long-term and affordable financing to own homes near their workplaces, schools and sources of livelihood,” he said. “This move allows Pag-IBIG Fund to widen access to home financing across more income segments, in line with the directive of President Ferdinand R. Marcos Jr. to make decent and affordable housing more inclusive and accessible to more Filipino families,” the housing czar added. Given the oversupply of ready-for-occupancy condominium units specifically in the National Capital Region and other urban areas, the top officials stressed that the move was in support of the efforts to improve the take-up of available housing units. The DHSUD chief emphasized that the higher loan ceiling, combined with Pag-IBIG’s long-term home financing, could make the purchase of these units more affordable for qualified members. Urging developer-partners to recalibrate their prices, Aliling convinced them to offer reasonable packages and help bring their available units within the reach of Pag-IBIG Fund members. “When housing prices, borrower capacity and affordable financing meet, more Filipino workers can finally own homes of their own,” Aliling said. Higher maximum loan amount remains subject to credit evaluation, capacity-to-pay requirements, collateral appraisal and other housing loan guidelines to ensure that borrowing remains responsible and sustainable for members, Pag-IBIG said. Both Aliling and Acosta believed that higher loan ceiling would further strengthen Pag-IBIG’s role in bridging available housing supply to actual homebuyer capacity while encouraging developers to offer homes at prices that better match the income and financing ability of Filipino workers.

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