Pag-IBIG Fund raises limit on housing loans to P10 million

Amid property oversupply

MANILA, Philippines — Home Development Mutual Fund or the Pag-IBIG Fund has raised its maximum housing loan amount per borrower to P10 million, aimed at easing the volume of unsold units and expanding affordable long-term home credit for middle-income workers.

The state-run fund said the higher ceiling, coming from P6 million, might still be payable for up to 30 years and comes with rates starting at 5.75 percent, depending on the fixing period.

Department of Human Settlements and Urban Development Secretary Jose Ramon Aliling, who also chairs the Pag-IBIG Fund Board of Trustees, said the adjustment broadens financing options across income segments.

“With the higher P10-million loan ceiling, Pag-IBIG Fund can now serve more members, especially Filipino workers who seek homes in higher price segments but still require long-term and affordable financing to own homes near their workplaces, schools and sources of livelihood,” Aliling said.

The agency also said the measure also supports efforts to cut the bloated housing inventory in Metro Manila and other urban centers.

Property analyst Colliers said the Metro Manila condominium market showed early signs of recovery in the first quarter, with the remaining inventory life improving to 6.8 years from a peak of 13.4 years in mid-2025.

Meanwhile, Pag-IBIG CEO Marilene Acosta said the fund’s strong financial footing allows it to raise the loan cap, while keeping rates among the lowest in the market.

The state-run fund earlier reported an 11-percent increase in its net income to P16.77 billion in the January to March period from P15.01 billion in the same period in 2025.

“More importantly, this allows us to widen the reach of the Expanded 4PH (Expanded Pambansang Pabahay para sa Pilipino Program) so that more members, across more income segments, can gain access to decent and affordable homes, while eligible socialized housing borrowers continue to benefit from the three percent subsidized rate,” Acosta said.

Pag-IBIG earlier said it would continue offering a three-percent annual interest rate under the 4PH, the government’s flagship housing program, amid the Middle East war burden.

Despite this, the agency said the higher maximum loan amount would remain subject to credit evaluation, capacity-to-pay requirements, collateral appraisal and other housing loan guidelines.