Pag-IBIG extends low home loan rates until end-2025

MANILA, Philippines, June 15 ------ The Home Development Mutual Fund, commonly known as Pag-IBIG, is extending its low interest rates for home loans until the end of the year amid an improved financial standing and to address the country’s housing backlog.

In a statement, Pag-IBIG Fund said it kept interest rates steady until end-December, marking the second consecutive year of reduced rates. As such, the Pag-IBIG housing loan still carries an interest of 6.25 percent per year under the three-year repricing period. Its loan rate under its one-year repricing period is also unchanged at 5.75 percent per annum.

Its special interest rate for home loans of minimum-wage earners also remains at three percent per annum, the lowest in the market. Pag-IBIG CEO Marilene Acosta said the decision to maintain interest rates is due to the agency’s prudent fiscal management, strong collections and high-performing loan portfolio. “These continue to keep us financially sound, enabling us to finance our members’ housing needs without external borrowing,” Acosta said.

Further, Pag-IBIG housing loans offer members financial benefits, as interest rates remain lower than the dividends earned on their savings. During the first quarter, home loan releases reached P30.22 billion benefitting over 20,000 members. Pag-IBIG’s total assets surpassed P1.1 trillion in end-March, reflecting its robust financial standing and capacity to sustain long-term support for affordable housing. Currently, Pag-IBIG has 16.58 million active members.

Source: philstar.com