Pag-IBIG, SMDC Forge Housing Finance Partnership

MANILA, Philippines — The Pag-IBIG Fund has partnered with property developer SM Development Corp. (SMDC) to expand housing options available through the government’s Expanded Pambansang Pabahay para sa Pilipino (4PH) Program. This collaboration aims to make homeownership more accessible and affordable for a wider segment of the Filipino population. Under a memorandum of understanding signed on Sept. 8, SMDC will offer preferential pricing to qualified Pag-IBIG housing loan borrowers on selected units within Pag-IBIG-accredited projects. This initiative is expected to help Pag-IBIG members find homes that align with their family’s needs, preferred locations, and budgets, facilitating affordable financing. Currently, SMDC projects accredited by Pag-IBIG include Coast Residences in Pasay, Spring Residences in Parañaque, select phases of Hill Residences in Quezon City, and SMDC Cheerful Homes 1 and 2 in Pampanga. Additionally, SMDC Heights, SMDC Nature, and SMDC Symphony Homes, encompassing high-rise, mid-rise, and house-and-lot developments, are under review. SMDC is also working to broaden its selection, with more developments in growth areas like Makati, Mandaluyong, and Pasay undergoing Pag-IBIG accreditation. Pag-IBIG Fund CEO Marilene Acosta emphasized the partnership's role in realizing the fund's objective. “Affordable financing truly serves its purpose when our members also have suitable homes to choose from. Through our partnership with SMDC, more Filipino workers can choose a home based on their family’s needs, preferred location and budget, then finance it affordably through Pag-IBIG,” she stated. Pag-IBIG is currently offering promotional interest rates of 4.5 percent for loans up to P4.9 million and 5.75 percent for loans above P4.9 million up to P10 million, valid until the end of the year. Jeffrey Lim, president of SM Prime and SMDC, highlighted the synergy between government and private sector efforts. “Government plays a critical role in making home financing more affordable, while developers like SMDC must provide homes and communities that deliver lasting value,” he said. “With DHSUD (Department of Human Settlements and Urban Development), Pag-IBIG Fund and SMDC working together, Filipino homebuyers can get more of what they need: better financing, the right space, a good location, convenient access and a community where they can build their lives.” This collaboration signifies a strengthened partnership between the government and the private sector to address the housing backlog and improve living conditions for Filipinos. Amidst rising housing costs in urban centers, such integration of public support and private development offers a crucial avenue for low and middle-income earners.