Pag-IBIG Fund said Monday it will maintain its housing loan interest rates low until June 2025, bucking the trend of rising market lending rates.
The state-run home financing agency said it would keep its three-year repricing period rate at 6.25 percent per annum and its one-year repricing period rate at 5.75 percent.
This compares to market rates for home loans, which the agency said ranged from 6.82 percent to 7.94 percent in indicative terms, and 7.18 percent to 8.78 percent in effective terms, as of the week ending Jan. 29, 2025.
Pag-IBIG’s Affordable Housing Program will also continue to offer a 3-percent annual interest rate for minimum-wage earners, the agency said.
“We recognize the importance of affordable home financing for Filipino workers,” said Jose Rizalino L. Acuzar, head of the Department of Human Settlements and Urban Development and chairman of the Pag-IBIG Fund Board of Trustees.
“This effort aligns with President Ferdinand Marcos Jr.’s directive to address the housing needs of our countrymen,” said Acuzar.
Pag-IBIG Fund chief executive Marilene Acosta attributed the agency’s ability to maintain low rates to efficient operations, a high performing loans ratio, and strong loan payment collections.
“We posted a record-high performing loans ratio of 93.72 percent to end last year, which 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 the need to borrow externally, which in turn insulates our members from rising market interest rates,” she said.
Acosta said Pag-IBIG housing loan interest rates remain lower than the dividends earned on member savings.
“As administrators of the workers’ fund, we remain deeply committed to providing affordable home loans and competitive dividends, empowering our members to achieve homeownership and a better life,” she said.