Pag-Ibig keeps 3% interest rate amid higher house prices

MANILA, Philippines – Home Development Mutual Fund, or Pag-IBIG Fund, will keep its 3 percent subsidized housing loan rate even as the government raises price ceilings for socialized homes, the agency announced Tuesday.

The rate, first implemented in July 2025, applies to the first five years of loans under the Expanded Pambansang Pabahay para sa Pilipino (Expanded 4PH) Program.

READ: Pag-Ibig cuts socialized housing loan rate to 3%

The update comes alongside new Implementing Rules and Regulations issued by the Department of Human Settlements and Urban Development (DHSUD) and the Department of Economy, Planning, and Development (DEPDev), which raised the maximum selling prices for socialized housing units. 

House-and-lot units are now priced between P844,440 and P950,000, while condominium projects with five floors or more are capped at P1.8 million. 

Eligible condominium projects may also add up to P200,000 based on zonal value, bringing certain units to a maximum of P2 million.

READ: PEZA, Pag-Ibig partner up for housing program

According to Pag-IBIG, the 3 percent interest rate can now be extended for another five years, helping keep monthly payments manageable even as prices rise. 

Under the program, house-and-lot units priced up to P950,000 would require monthly payments of around P4,005, while condominium units costing up to P2 million would have payments of about P8,432. INQ