Pag-IBIG Fund will maintain its low interest rates on housing loans until June 2025, marking the second consecutive year of offering affordable home financing and defying the upward trend in market lending rates, top officials announced Thursday (March 27).

Pag-IBIG Fund continues to offer significantly lower rates as the agency has held its three-year repricing period steady at 6.25% per annum and maintains an even lower rate of 5.75% per annum for its one-year repricing period. This, despite the rise in home lending rates based on market reports, with indicative rates ranging from 6.82% to 7.94%, and effective rates between 7.18% and 8.78% as of the week ending Jan. 29, 2025.

Pag-IBIG’s Affordable Housing Program, meanwhile, also continues to provide a special 3% interest rate per annum for minimum-wage earners, remaining the lowest available rate in the market today.

“We recognize the importance of affordable home financing for Filipino workers. Thanks to Pag-IBIG Fund’s robust fiscal management, we can consistently provide our members with rates that are within their means and therefore open doors to homeownership for more members. This effort aligns with President Ferdinand Marcos Jr.’s directive to address the housing needs of our countrymen,” said Secretary Jose Rizalino L. Acuzar, head of the Department of Human Settlements and Urban Development and chair of the 11-member Pag-IBIG Fund Board of Trustees.

Pag-IBIG Fund Chief Executive Officer Marilene C. Acosta said that the agency’s ability to retain its low interest rates is the result of the efficiencies in its operations, the surge in its performing loans ratio, and robust collections of loan payments.

“We posted a record-high performing loans ratio of 93.72% to end last year, which means most of our members are diligently paying their home loans. 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. That is why I urge our borrowers to keep with their obligations because doing so will keep Pag-IBIG Fund – their fund – healthy. And when their fund is healthy, they can continue to enjoy low interest rates,” Acosta said.

Acosta further emphasized that Pag-IBIG housing loans offer members significant financial benefits, as interest rates remain lower than the dividends earned on their savings, allowing them to grow their funds even while financing their homes. “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. This exemplifies our Lingkod Pag-IBIG Brand of Service – Tapat na Serbisyo, Mula sa Puso,” she added.

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