State-run Pag-IBIG Fund said it will maintain its 3 percent subsidized interest rate for socialized housing loans even as the government raises price ceilings to help developers improve the quality of low-cost homes.
The Department of Human Settlements and Urban Development (DHSUD) and the Department of Economy, Planning and Development (DEPDev) recently issued updated price ceilings under Joint Memorandum Circular No. 2025-001.
The new rates are intended to reflect current construction costs and encourage developers to build safer, more durable units for Filipino workers under the Expanded Pambansang Pabahay para sa Pilipino program.
Under the new rules, the maximum selling price for a socialized house-and-lot unit is now P844,440 for a 24 to 26 square meter unit and P950,000 for units 27 square meters and larger.
For socialized condominiums, price ceilings have been set up to P1.8 million for buildings with more than five floors. In the National Capital Region and other highly urbanized cities, add-ons based on zonal values may increase the maximum price for select condominiums to P2 million.
DHSUD Secretary Jose Ramon Aliling said the goal of the housing agenda of President Ferdinand Marcos Jr. is to ensure workers have access to homes that are decent and built to last.
He said aligning project prices with today’s economic conditions allows the industry to deliver more homes at scale while keeping them attainable.
Pag-IBIG Fund chief executive Marilene Acosta said the agency’s strong fiscal position enables it to keep loan terms affordable.
She said the fund would work with developers to accelerate unit production and loan takeouts to meet the administration’s homeownership goals.
Qualified borrowers under the Expanded 4PH program can access the 3-percent interest rate for the first five years of the loan, with an option to extend for another five years.
The subsidy brings monthly payments to P4,005 for a P950,000 house-and-lot and about P8,432 for a P2 million condominium unit.
The agency also introduced an Early Bird Promo, where the first 30,000 qualified borrowers can lock in the 3-percent subsidized rate for the first 10 years of their loan.
