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PAG-IBIG’s Housing Loan Interest Rates (2019)




Now may be a good time to get a housing loan. Why?

Interest rates are currently at relatively low levels, but with the Bangko Sentral ng Pilipinas (BSP) continuously increasing rates in the past months, housing loan interest rates charged by Philippine banks will surely follow.

If you’re able to lock in a low interest rate, you can save on future interest expense the moment rates start to rise. Imagine, for example, getting a housing loan for only 3% interest this year, fixed for 30 years.

You’ll definitely save a lot assuming home loan interest rate rises to, say, 5%! That’s a nominal 2% interest which you will be able to save and won’t have to pay anymore every year.

In the Philippines, an easy and convenient housing loan option is, of course, the PAGIBIG loan administered by the Home Development Mutual Fund, more popularly known as PAGIBIG Fund.

Here are housing loan interest rates offered by PAGIBIG Fund this 2019.

PAGIBIG Fund’s Housing Loan Interest Rates

Loan Duration (Fixed Pricing Period)Housing Loan Interest Rate
1 Year5.375%
3 Years6.375%
5 Years7.270%
10 Years8.035%
15 Years8.585%
20 Years8.800%
25 Years9.050%
30 Years10.000%

As you can see, the rates are relatively cheaper and competitive compared to those offered by Philippine banks.

How to use the interest rate table above? First, choose your desired fixed payment period in the first column. Then you can see, in the second column, the corresponding interest rate of your loan.

Of course, the interest rates shown above are quoted “per annum”, that means those are the interest rates per year during the fixed pricing period.

What is “Fixed Pricing Period”?

What is the “fixed pricing period” column? The “fixed pricing period” is how long you want to lock-in your rates. This means the interest rate will not change or won’t be “repriced” within the duration of the locked-in period.

For example, if you want a 20-year fixed pricing period, your PAGIBIG housing loan will have an interest rate of 8.800% fixed for 20 years, as shown in the table above. Even if PAGIBIG’s interest rates will change in the future, your home loan rate is locked in and fixed for 20 years — saving you some money if and when interest rates rise.

After the “fixed rate period” your loan will be “repriced,” which means a new interest rate may be charged on your loan. If, for example, you chose a 1-year fixed repricing period, after one year, your PAGIBIG housing loan will have a new interest rate.

Depending on market conditions at the time of repricing, it’s possible that the new interest rate could be higher. It could stay the same, but rarely will it go below the original interest rate. We thus suggest that you choose a longer fixed pricing period to minimize the possibility of loan default (i.e., cannot pay the loan anymore) which could be due to a repriced, and possibly higher, monthly amortization.

3% Housing Loan Interest Rate

Good news to all minimum wage workers! PAGIBIG Fund has recently reduced the housing loan interest rate, specifically for this segment of borrowers.

PAGIBIG has lowered the annual interest rate from 4.5% to 3%, but only for minimum wage earners.

Here are the eligibility requirements to qualify for a low 3% interest per year under the PAGIBIG Affordable Housing Program (AHP):

  • For minimum-wage workers in the National Capital Region (NCR) not earning more than P15,000 gross monthly income; OR
  • Workers in other regions (outside NCR) with a gross monthly income of P12,000
  • Housing loan must not exceed P450,000

Interested to get a Pag-IBIG loan? Read our guide on how to apply for a PAG-IBIG housing loan!

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4 thoughts on “PAG-IBIG’s Housing Loan Interest Rates (2019)”

  1. Nieco Pama says:

    Kaya pala.. nagbawas ang bill ko more than 100..kaya yung monthly ko na 3060.00 ay naging 2911.00 na lang…

  2. Franc says:

    Hello po, yung pong sabi niyong fixed housing loan interest rate, pag nagtatanong po ako s mga real estate agent ng tcp at monthly amort papalo siya ng halos 200% interest rate

  3. Celso P. Engracio says:

    Celso engracio
    HLID no. 315018358815
    Full payment Sept to Dec. 2018, dapat nga Jan 1,400 bbyaran k ngyn. Pwde po b mgprint out pdla nga kyo mula 2017 to 2018. Para makita k hulog k s inyo nakatira 1008 sta. Clara at. sampaloc Manila code 1008.

  4. Aaron says:

    Paki claro nga po kung sa 8.8% na interest rate ay annual or sa buong 30 years na yun? Kasi ang computations ng mga agent lumalabas ay annual cya

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