Manila: The Pag-IBIG Fund has announced a significant reduction in promotional interest rates and an increase in its maximum home loan ceiling to PHP10 million. This initiative aims to ease monthly housing payments for Filipino workers as commercial lending rates rise.

According to Philippines News Agency, Department of Human Settlements and Urban Development Secretary Jose Ramon Aliling, who also chairs the Pag-IBIG Board of Trustees, emphasized that the subsidized and promotional rates align with the government's Expanded Pambansang Pabahay para sa Pilipino Program (Expanded 4PH). This effort is directed at making homeownership more accessible for Filipinos.

"Pag-IBIG's promo rates are about making homeownership more affordable at a time when many Filipino families are carefully weighing the cost of buying a home," Aliling stated in a news release. He further explained that by reducing monthly amortization, the initiative aims to help more workers qualify for home financing, boost housing demand, and stimulate activity in the housing market.

The program offers qualified borrowers for socialized housing a subsidized annual interest rate of 3%, resulting in a monthly amortization as low as PHP4,005 for a house-and-lot package valued at PHP950,000. Additionally, Pag-IBIG provides a promotional rate of 4.5% for low-cost housing loans that exceed the socialized housing threshold up to PHP4.9 million, and 5.75% for loans surpassing PHP4.9 million up to the new PHP10 million limit.

Aliling noted that a robust housing sector positively impacts the broader economy. "Every home financed means work for builders, suppliers, transport providers, furniture makers, retailers, and many other sectors connected to housing," he remarked.

Pag-IBIG Chief Executive Officer Marilene Acosta highlighted the agency's strong financial position as a key factor enabling it to offer these competitive lending rates. "We are able to offer these lower rates precisely because of our strong financial position. Our total assets and net income have grown steadily, our collections remain healthy, and our members continue to save with us in record numbers," she said.

Pag-IBIG's data revealed that members saved PHP90.24 billion in the first five months of 2026. In the same period, the agency disbursed PHP55.26 billion in housing loans, facilitating the purchase of 34,641 homes.