STATE-RUN Pag-Ibig Fund will maintain its subsidized three percent interest rate for socialized housing loans under the Expanded Pambansang Pabahay para sa Pilipino (4PH) program, a move expected to shield low-income homebuyers from rising global uncertainties while sustaining activity in the housing sector.
The decision comes as tensions in the Middle East continue to drive oil price volatility, raising concerns over inflation and borrowing costs. By keeping rates low, Pag-Ibig is effectively insulating a key segment of the property market from external shocks, ensuring that demand for entry-level housing remains intact.
Impact on homebuyers and affordability
For buyers, the fixed three percent rate — available to qualified borrowers for the first five years and up to 10 years under a limited promo — translates to significantly lower and more predictable monthly payments.
Monthly amortizations are estimated at around P4,005 for house-and-lot units worth up to P950,000 and about P7,589 for condominium units priced up to P1.8 million — levels that are below typical rental costs.
This effectively improves affordability at a time when higher fuel costs could otherwise erode household purchasing power. Additional government subsidies could even bring rates down to as low as one percent, further widening access to homeownership.
Support for developers and job creation
Beyond buyers, the policy is expected to stabilize demand for socialized housing, providing developers with a more predictable pipeline of projects. This is critical as rising construction and financing costs — often linked to global oil prices — pose risks to project viability.
Pag-Ibig officials noted that keeping amortizations low helps sustain housing production and the jobs it generates, reinforcing the sector’s role as a domestic economic driver.
The agency is also rolling out regional housing fairs to connect buyers, developers and financing in one venue, further lowering transaction costs and accelerating sales uptake. / KOC