Millions of Filipino workers looking to buy homes in expensive urban areas now have access to significantly higher government financing after Pag-IBIG Fund lifted its maximum housing loan to P10 million — a AED4 million jump from the previous P6 million cap.
The state-run fund said the expanded ceiling comes as Metro Manila grapples with an estimated 30,000 unsold ready-for-occupancy condominium units, a figure cited by property consultancy Colliers Philippines. The move is broadly seen as a signal to the market that demand-side financing, rather than developer-side pricing alone, will be part of the government’s response to the oversupply.
Repayment terms remain at a maximum of 30 years, with interest rates set between 5.75% and 9.75% depending on the chosen fixing period. Members enrolled under the Expanded Pambansang Pabahay para sa Pilipino — known as the Expanded 4PH Program — retain access to a subsidized 3% annual interest rate, a figure Pag-IBIG had already maintained for a second consecutive time in March.
Existing loan qualifications stay in effect. Borrowers must have at least 24 monthly savings contributions on record and must not exceed age 65 at the time of application, with loan maturity capped at age 70. The fund said all applications remain subject to credit evaluation, capacity-to-pay assessment, and collateral appraisal.
Department of Human Settlements and Urban Development Secretary Jose Ramon Aliling, who also serves as chair of the Pag-IBIG Fund Board of Trustees, framed the change as part of President Ferdinand Marcos Jr.’s broader housing agenda.
“With the higher PHP10-million loan ceiling, Pag-IBIG Fund can now serve more members, especially Filipino workers who seek homes in higher price segments but still require long-term and affordable financing to own homes near their workplaces, schools, and sources of livelihood,” Aliling said.
“This move allows Pag-IBIG Fund to widen access to home financing across more income segments, in line with the directive of President Ferdinand R. Marcos Jr. to make decent and affordable housing more inclusive and accessible to more Filipino families,” he added.
Aliling also called on private developers to respond in kind, urging them to revisit pricing structures and put forward more competitive packages alongside the fund’s expanded capacity.
Pag-IBIG Fund CEO Marilene Acosta pointed to the rental market as the practical benchmark for the policy’s impact, arguing that loan repayments on moderately priced homes could undercut what many urban families already pay in rent each month.
“For many families, rent is already one of their biggest monthly expenses. Through Pag-IBIG Fund’s affordable housing loan terms, monthly amortizations for reasonably priced homes can be lower than rent in many urban areas,” Acosta said.
“This is the value we want to give our members: instead of paying rent month after month, they can use their hard-earned income to pay for a home they can eventually call their own,” she added.
