Pag-IBIG Fund Extends Low Housing Loan Rates Until June 2025
Manila, Philippines – In a significant move aimed at supporting Filipino homebuyers, the Pag-IBIG Fund has announced the extension of its low-interest housing loan rates until June 2025. This decision was confirmed by the government corporation on March 27, providing borrowers with continued access to affordable financing options amidst rising market rates.
Affordable Home Financing
The Pag-IBIG Fund, officially known as the Home Development Mutual Fund, serves as a pivotal financial institution under the Department of Human Settlements and Urban Development (DHSUD). By maintaining its current interest rates for the second consecutive year, the organization emphasizes its commitment to making home ownership more accessible for Filipino workers.
The fund will retain its three-year repricing period interest rate at 6.25 percent per annum, while the one-year repricing period will be set even lower at 5.75 percent. These rates notably undercut prevailing market home loan rates, which are reported to range from 6.82 percent to 7.94 percent with effective rates between 7.18 percent and 8.78 percent as of January 2025. ## Special Programs for Minimum-Wage Earners
Understanding the unique challenges faced by low-income earners, the Pag-IBIG Fund offers a special housing program with a remarkably low interest rate of 3 percent annually for minimum-wage workers. This initiative aims to provide essential support to members striving for home ownership, reflecting the government’s focus on inclusive housing solutions.
Housing Secretary Jose Rizalino Acuzar, who leads the Pag-IBIG Fund’s Board of Trustees, stated, “We recognize the importance of affordable home financing for Filipino workers.” He underscored the organization’s fiscal management, which allows it to provide sustainable rates that make home ownership attainable for more citizens. This approach is in line with President Ferdinand Marcos Jr.’s directive to address the housing needs of the Filipino population.
Sustaining Low Interest Rates
Pag-IBIG Fund CEO Marilene Acosta highlighted the agency’s operational efficiencies, an increasing ratio of performing loans, and strong collections as key factors that enable it to sustain low interest rates. “We posted a record-high performing loans ratio of 93.72 percent at the end of last year, meaning most of our members are diligently paying their home loans,” Acosta noted. She further explained that the agency’s strong performance allows it to fund housing loans independently, thus shielding members from fluctuations in market interest rates.
This decision to extend the low loan rates comes at a critical time when many Filipinos are navigating the economic challenges posed by inflation and rising living costs. As the Pag-IBIG Fund continues to prioritize affordable home financing, it positions itself as an essential ally in helping citizens achieve their dreams of home ownership.
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