Pag-IBIG Fund said it will maintain its low interest rates on housing loans until June 2025.
In a press statement, Pag-IBIG Fund said it held its three-year repricing period steady at 6.25 percent per annum and maintains an even lower rate of 5.75 percent per annum for its one-year repricing period.
This is the second consecutive year that Pag-IBIG is offering affordable home financing despite the rise in home lending rates based on market reports, the Fund said.
It cited those reports as saying indicative rates range from 6.82 to 7.94 percent and effective rates are between 7.18 and 8.78 percent as of the week ending Jan. 29, 2025.
Pag-IBIG said its Affordable Housing Program also continues to provide a special 3 percent interest rate per annum for minimum-wage earners,still the lowest rate in the market.
Pag-IBIG Fund Chief Executive Officer Marilene Acosta said the agency is able to retain its low interest rates due to efficiencies in its operations, the surge in its performing loans ratio, and robust collections of loan payments.
Repricing allows borrowers to adjust their payment terms, the Fund said. For example, upon application, a borrower can avail the one-year fixed rate of 5.75 percent. The borrower can also choose the fixed rate for three years of 6.25 percent then choose another repricing plan thereafter, it added.
Acosta said Pag-IBIG posted a record-high performing loans ratio of 93.72 percent at the end of last year, which means most of borrowers were 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,” Acosta said.
“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 Acuzar, head of the Department of Human Settlements and Urban Development and chair of the 11-member Pag-IBIG Fund Board of Trustees.
