SM Development Corporation (SMDC) and the Home Development Mutual Fund, commonly known as Pag-IBIG Fund, have formalized their partnership to help make homeownership more accessible to qualified Filipino workers and families in the Philippines and abroad.
The two organizations signed a Memorandum of Understanding (MOU) on September 8, covering homebuyer education, seller preparation, initial buyer guidance, and planned programs designed to help prospective homeowners better understand their housing and financing options.
The partnership brings selected Pag-IBIG-accredited SMDC projects together with clearer information and support for homebuyers. This comes as Pag-IBIG Fund recently increased its maximum housing loan amount to ₱10 million for qualified members, giving borrowers more financing possibilities.
Among the SMDC projects currently accredited by Pag-IBIG Fund are Coast Residences in Pasay City, Spring Residences in Parañaque City, Hill Residences in Quezon City, and SMDC Cheerful Homes 1 and 2 in Pampanga. Additional SMDC projects in Makati City, Mandaluyong City, and Pasay City are currently undergoing accreditation.
SMDC Vice President and Head of Design, Innovation and Strategy Jessica Sy said the partnership reflects the importance of helping Filipino families find practical pathways toward owning a home.
Meanwhile, Department of Human Settlements and Urban Development (DHSUD) Secretary Jose Ramon P. Aliling emphasized the importance of collaboration between government and the private sector in expanding affordable homeownership opportunities under the administration's Expanded 4PH program.
Homebuyer education is also a key component of the partnership. SMDC is preparing its sellers to provide initial guidance on Pag-IBIG financing, participating projects, basic requirements, and the next steps for prospective buyers. The company has also established a help desk where buyers can inquire about participating projects, request indicative computations, and learn about the documents they need to prepare.
Pag-IBIG Fund remains responsible for determining borrower eligibility, property appraisal, actual loan amounts, and loan approval based on the borrower's income, capacity to pay, and applicable program rules.
Pag-IBIG Housing Loans are available for up to ₱10 million per qualified borrower, with repayment terms of up to 30 years. Qualified socialized housing borrowers may avail themselves of the subsidized 3% rate, while eligible borrowers purchasing homes above the socialized housing ceiling may qualify for promotional rates of 4.5% or 5.75%, depending on the loan amount. These promotional rates are available until December 31, 2026.
The partnership will also reach Filipinos living and working abroad. SMDC is preparing housing caravans and roadshows in selected locations in the Philippines and overseas to provide information on accredited housing options and Pag-IBIG financing.
Through the collaboration, SMDC and Pag-IBIG Fund aim to give Filipino homebuyers clearer information, better guidance, and more opportunities to explore homeownership options that match their needs and financial capacity.
