Pag-IBIG keeps low 3% rate as higher price ceilings lift quality of socialized homes

Filipino workers are expected to benefit from better-quality socialized housing following the government’s approval of higher price ceilings for socialized subdivision and condominium projects, while Pag-IBIG Fund continues to provide affordability through its subsidized housing loan rates under the Expanded Pambansang Pabahay para sa Pilipino (Expanded 4PH) Program.

The updated ceilings, issued under the Implementing Rules and Regulations of the Department of Human Settlements and Urban Development (DHSUD) and the Department of Economy, Planning, and Development (DEPDev) Joint Memorandum Circular No. 2025-001, are intended to reflect current cost conditions and enable developers to deliver improved unit quality and safer housing standards.

“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 P. Aliling said. “By updating the price ceilings, we are aligning project prices with today’s cost conditions so developers can build better socialized housing units and sustain construction. This strengthens the housing industry’s capacity to deliver more homes at scale, while keeping Expanded 4PH firmly focused on affordability to make homeownership more attainable for Filipinos.”

Under the IRR, the maximum selling price for socialized house-and-lot units has been adjusted to P844,440 for a minimum unit size of 24 to 26 sq. m., and P950,000 for 27 sq. m. and above.

For socialized condominium projects, price ceilings were also updated based on building classification and unit size, with maximum selling prices set at up to P1.8 million for projects above five floors with unit sizes of 27 sq. m. and above.

For eligible socialized condominium projects in the National Capital Region and other highly urbanized cities, the IRR also allows maximum add-ons based on zonal value of up to P200,000, bringing the allowable maximum selling price for select categories to as high as P2.0 million.

Pag-IBIG Fund Chief Executive Officer Marilene C. Acosta said the Fund will continue to support Expanded 4PH by keeping housing loan terms affordable for qualified members, in line with President Marcos Jr.’s push to expand access to homeownership. She added that Pag-IBIG Fund will work closely with housing stakeholders, including partner developers, to help speed up unit production and takeouts under the program.

“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. “Even as better socialized homes become available under the new ceilings, we will keep loan terms affordable and work closely with our partners to help fast-track the availability of more housing units for Filipino workers.”
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Under the Pag-IBIG Housing Loan for the Expanded 4PH, qualified members may avail of loans at a subsidized 3% interest rate for the first five years of the loan, extendible for another five years for qualified borrowers. This lowers monthly payments to P4,005 for house-and-lot units priced up to P950,000, and about P8,432 for condominium units priced up to P2 million. Through the agency’s Early Bird Promo, the first 30,000 qualified borrowers may enjoy the subsidized rate for the first 10 years of the loan.