To ensure that the newly increased price ceilings for socialized housing remain affordable for the average Filipino worker, Pag-IBIG Fund officially announced today, January 6, 2026, that it will maintain its highly subsidized 3% annual interest rate for qualified borrowers under the Expanded Pambansang Pabahay Para sa Pilipino (4PH) Program.
This announcement comes as a vital “affordability bridge” following the government’s decision to raise socialized housing caps to ₱950,000 for house-and-lot units and up to ₱2 million for certain condominium projects.
“Under President Ferdinand R. Marcos Jr.’s housing agenda, our goal is clear. Filipino workers should have access to homes that are safe, decent and built to last, and that remain within their reach,” DHSUD Secretary Jose Ramon Aliling said.
Monthly Amortization Breakdown
The subsidized rate significantly lowers the barrier to entry for first-time homebuyers. At the 3% rate, the estimated monthly payments are:
House and Lot (₱950,000): Approximately ₱4,005 per month.
Condominium (₱2,000,000): Approximately ₱8,432 per month.
The “Early Bird” 10-Year Fixed Rate
In an aggressive move to jumpstart homeownership this year, Pag-IBIG CEO Marilene Acosta confirmed that the first 30,000 qualified borrowers will enjoy this 3% rate fixed for a full 10 years. Normally, the subsidized rate is only fixed for the first five years before undergoing repricing.
“Our strong fiscal position allows us to continue offering subsidized rates under the Expanded 4PH so our members can truly achieve their dream of owning a home,” Acosta said.
Why This is a Win-Win for the Industry
For developers, the higher price ceilings allow for better construction quality and safer building standards. For the buyers, the Pag-IBIG subsidy ensures that the increase in house prices does not translate into unattainable monthly costs. This synergy is expected to drive a massive wave of “take-outs” and new project groundbreakings in the first quarter of 2026.
JuanToBuild Tip: If you are a contractor or developer, now is the time to assist your clients with their Pag-IBIG pre-qualification. The “10-year fixed” slots are expected to be filled quickly!
