Pag-IBIG widens housing loan support as Philippine property demand weakens
Financing measures include a subsidised 3% annual rate for low-income buyers and discounts of up to 30% on selected acquired properties.
Philippine state shelter agency Pag-IBIG Fund is expanding subsidised housing loans and promotional mortgage rates to encourage purchases during a residential property downturn. Chief executive Marilene Acosta presented the financing options at the National Housing Expo 2026 on October 19.
Minimum-wage workers and low-income households buying socialised housing qualify for a subsidised annual interest rate of 3%, Acosta said. Middle-income buyers can access promotional fixed rates of 4.5% and 5.75% for eligible purchases, with loan limits reaching ₱10 million. Selected acquired properties are also being offered at discounts of up to 30%.
The measures form part of support linked to the government's Expanded Pambansang Pabahay Para sa Pilipino (4PH) Program. More than 80 developers participated in the expo, which featured approximately 50,000 completed homes, including condominiums and house-and-lot properties.
The financing push follows a 7% year-on-year decline in combined residential pre-sales at Ayala Land Inc., SM Prime Holdings, Inc., Robinsons Land Corp. and Megaworld Corp. in the first half of 2026, according to S&P Global Ratings. Its corporate ratings analyst Johann Tan said economic pressures would take time to ease, with a meaningful housing market recovery delayed until the latter half of 2027.
Department of Human Settlements and Urban Development Secretary Jose Ramon Aliling said the sector had recorded its highest number of licences to sell since 2022, adding to unsold supply. The department is introducing an Enhanced Mortgage Program aimed at increasing buyers' purchasing capacity and easing upfront costs. It is also broadening arrangements for structured rentals and temporary accommodation.
