THE Home Development Mutual Fund or the Pag-IBIG Fund is offering a special 4.5 percent housing loan rate to qualified members seeking to purchase house-and-lot packages worth up to P1.8 million.
In a statement, the agency said the new rate is expected to be available by October, as part of its celebrations of National Shelter Month.
Pag-IBIG said this offering is part of the Marcos administration’s Expanded Pambansang Pabahay para sa Pilipino (4PH) Program.
“Under the program, the first 10,000 housing loan applications from locally employed members and 1,000 applications from overseas Filipino workers (OFWs) will enjoy the subsidized 4.5 percent annual interest rate, fixed for the first three years of the loan. Once the program is implemented, eligible applications already in the pipeline will also be granted the special rate, in addition to the 11,000 slots,” the Pag-IBIG Fund said.
The agency said the 4.5 percent rate is significantly lower than the 6.25 percent for similar loans, which would make monthly payments more affordable for borrowers.
“We continue to heed the call of President Ferdinand Marcos Jr. to provide affordable and inclusive housing for every Filipino family,” Housing Secretary and Pag-IBIG Fund Board of Trustees Chairman Jose Ramon Aliling said.
“Just last July, we introduced a subsidized 3 percent rate for the first five years of loans for socialized housing units. Now, we are further expanding access to affordable home financing by offering a special rate for loans of up to P1.8 million, which exceeds the socialized housing ceiling. This is another important step in broadening access to dignified and sustainable homeownership,” he added.
Those buying homes for the first time may qualify for the new rate for loans up to P1.8 million, if they are active Pag-IBIG Fund members that have at least 12 monthly savings.
This program is also open to members that are earning less than P47,856 per month in the National Capital Region, and less than P34,686 per month in areas outside the capital region.
It is also available to all OFWs, regardless of their income, who are also qualified for the program.
Pag-IBIG Chief Executive Officer Marilene Acosta said the special rate will allow members to save close to P2,000 per month or about P71,000 over the first three years of a P1.8 million loan payable over 30 years.
With the offer, monthly amortization for the loan at the promotional rate of 4.5 percent is only P9,120.34, compared to P11,082.91 at the regular 6.25 percent rate.
“This program makes even non-socialized housing more affordable and responds to the needs of Filipino families who prefer house-and-lot units that offer more space, privacy and long-term value,” Acosta said.
