IN A MOVE that continues to support affordable housing for Filipino workers, the Pag-IBIG Fund announced it will maintain its low interest rates on housing loans until June 2025, marking the second consecutive year of keeping rates below prevailing market levels.
Top officials of the agency made the announcement on Thursday, March 27, 2025, emphasizing the fund’s ongoing commitment to providing accessible home financing despite the steady increase in market-based lending rates.
Pag-Ibig will continue offering a 6.25 percent per annum rate for its three-year repricing period and an even lower 5.75 percent per annum rate for the one-year repricing option. These rates remain well below market benchmarks, which, as of Jan. 29, show indicative home lending rates ranging from 6.82 percent to 7.94 percent, with effective rates between 7.18 percent and 8.78 percent.
In addition, the agency’s Affordable Housing Program for minimum-wage earners remains in effect, offering a special three percent interest rate per annum—the lowest available in the market today.
“We recognize the importance of affordable home financing for Filipino workers,” said Secretary Jose Rizalino Acuzar, chairperson of the 11-member Pag-Ibig Fund Board of Trustees and head of the Department of Human Settlements and Urban Development.
According to Pag-Ibig Fund chief executive officer Marilene Acosta, the fund’s ability to maintain its low rates is a direct result of efficiencies in its operations, a strong performing loans ratio and robust collections.
“We posted a record-high performing loans ratio of 93.72 percent at the end of last year. That means most of our members are diligently paying their home loans,” Acosta said.
“This, combined with the quality of our investment portfolio, allows us to finance housing loans without needing to borrow externally—shielding our members from rising market interest rates.”
Acosta further emphasized that Pag-Ibig housing loans not only offer lower monthly amortizations but also allow members to earn more from their savings, as interest rates on loans remain below the dividends paid on their contributions. / KOC