Pag-IBIG Fund Raises Housing Loan Limit to P10 million

The Pag-IBIG Fund has increased its maximum housing loan amount to ₱10 million as part of efforts to expand the reach of President Ferdinand R. Marcos Jr.'s Expanded Pambansang Pabahay para sa Pilipino (Expanded 4PH Program). The move is also intended to help absorb the growing number of unsold housing units, particularly condominium units in major urban areas. The higher loan ceiling complements Pag-IBIG’s existing 3% subsidized housing loan rate for qualified socialized housing borrowers. It allows the agency to provide affordable long-term financing to members seeking homes that cost more than those in the socialized housing category. According to Jose Ramon Aliling, who chairs the Pag-IBIG Fund Board of Trustees, the increase aims to make homeownership more accessible across different income groups. He said workers looking for homes near their jobs, schools, or sources of income can now access larger loans while still benefiting from affordable financing terms. Aliling also noted that the policy could help reduce the oversupply of ready-for-occupancy condominium units in Metro Manila and other urban areas. He encouraged property developers to adjust pricing and create more affordable packages so that available units become attainable for Pag-IBIG members. Meanwhile, Marilene Acosta said the higher loan limit reflects Pag-IBIG’s commitment to serving Filipino workers across all income levels, including first-time buyers, middle-income earners, and higher-income members. She emphasized that Pag-IBIG can offer larger loans because of its strong financial position while maintaining some of the lowest housing loan rates in the market. Under the updated policy, qualified borrowers may obtain housing loans payable for up to 30 years, with interest rates that can be as low as 5.75% annually, depending on the chosen fixing period. Socialized housing borrowers will continue to enjoy the 3% subsidized rate. Acosta added that affordable housing loans can make owning a home a more practical option than renting, especially when housing prices are aligned with members’ incomes and borrowing capacity. Pag-IBIG clarified that approval for larger loans will still depend on factors such as credit evaluation, repayment capacity, property appraisal, and compliance with existing housing loan guidelines. Officials believe the policy will help connect available housing supply with qualified buyers while encouraging developers to offer homes at more affordable prices. Source: Philippine News Agency (PNA)