PAG-IBIG’s Housing Loan Interest Rates (2020)


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

Interest rates are currently at relatively low levels, and if you’re able to lock in a low interest rate, you can save on huge 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. No bank can offer that right now in the Philippines!

You’ll definitely save a lot assuming home loan interest rates start to rise, say, to 10%! That’s a nominal 7% 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 2020.

*See additional resource: PAG-IBIG Housing Loan Requirements, Fees and Processing Time

PAGIBIG’s Housing Loan Interest Rates

Loan Duration (Fixed Pricing Period)Interest Rate per Year
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 and low-income workers! PAGIBIG Fund has recently reduced the housing loan interest rate, specifically for this segment of borrowers.

PAGIBIG has lowered the annual interest rate of its Affordable Housing Loan Program (AHP) from 4.5% to a very low 3%, but again, this only applies to minimum wage and low-income earners.

The loan may be used for any of these purposes:

  • Purchase of fully developed residential lot or adjoining residential lots not exceeding one thousand square meters (1,000 sq. m.);
  • Purchase of a residential house and lot, townhouse or condominium unit, which may be: (1) old or brand new; (2) a property mortgaged with the Fund; or (3) adjoining houses and lots / townhouses / row houses / condominium units. Note that the subdivision project where said residential units are located must have complied with all the required facilities pursuant to BP No. 220.
  • Construction or completion of a residential unit on a residential lot owned by the borrower or a relative of the borrower;
  • Home improvement on the house owned by the borrower or a relative of the borrower, or on a property currently secured under a Contract-to-Sell (CTS), or Deed of Conditional Sale (DCS) between Pag-IBIG Fund and the buyer; or
  • Refinancing of an existing housing loan; provided, that the borrower must be regularly paying without any payment made beyond thirty (30) days past due for the last six (6) months from date of application.

The maximum loanable amount is P750,000 and the maximum repayment period is thirty (30) years.

Depending on the borrower’s monthly salary, the allowable loan amount and applicable interest rate are as follows:

Gross Monthly Income of Borrower (NCR)Maximum P15,000Maximum P17,500
Gross Monthly Income of Borrower (Other Regions)Maximum P12,000Maximum P14,000
Loanable AmountUp to the Socialized Housing Loan CeilingMaximum P750,000
Interest Rate3%6.5%

Based on the table above, borrowers earning a maximum salary of P15,000 per month in NCR (Cluster 1) and maximum P12,000 in the other regions (Cluster 2) with loan amount of up to the socialized housing loan ceiling shall be charged interest rate of 3% for the first five (5) years of the loan.

Meanwhile, borrowers who are earning a maximum of P17,500 in NCR (Cluster 1) and up to maximum P14,000 in the other regions (Cluster 2) and borrowing a maximum amount of P750,000 shall be charged interest rate of 6.5% for the first 10 years of the loan.

The 5- and 10-year periods mentioned are the same as the “fixed pricing period” explained in the preceding section. At the end of the 5-year or 10-year fixing pricing period, the interest rate shall be repriced by PAGIBIG. For borrowers that chose a 3-year or 5-year fixing period, the interest rate, as per PAGIBIG’s policy, is to reprice based on the prevailing interest rate or increase the rate by two percent (2%), whichever is lower.

Apart from the salary requirement, the member may borrow from PAGIBIG under the AHP as long as he or she has met these other conditions:

  • At least 24 monthly savings. Lump sum payment of the required 24 months savings is allowed;
  • Not more than 65 years old, and not more than 70 years old maturity of the date of loan application;
  • Has the legal capacity to acquired and encumber real property;
  • Passed satisfactory background/credit and employment/business checks of Pag-IBIG Fund
  • Has no outstanding Pag-IBIG Fund Short-Term Loan (STL) in arrears at the time of loan application;
  • Has no Pag-IBIG Fund Housing Loan that was foreclosed, cancelled, bought back due to default, or subjected to dacion en pago. If with existing Pag-IBIG Fund Housing Loan account, either as principal borrower or co-borrower, it must be updated.

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

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10 thoughts on “PAG-IBIG’s Housing Loan Interest Rates (2020)”

  1. Ask ko lng po if mag loloan po ako na halagang 250thousand tpos 3yrs ko po babayaran mag knu po kya magiging monthly ko po

  2. Hope Darling Musico

    Hello po,ask ko lang po paano mag apply ng pangpagawa ng bahay,,at kano po interest ng 2million..salamat po

  3. Hi paanu po makukuha ung friend ng housing NSA Saudi po sia pued ko po bang ako maglakad at kumuha sa knya kaso my problema wala sia gaanu requirements my tin num sia at page ibig membership matagal n kc po sia Saudi tapos LA po CIA contrata dito kc housewife n po sia ng tagarito

  4. 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

    1. Annual interest rate po yun. Ibig sabihin kung ang loan mo ay 1 million aat naghuhulog ka buwan buwan ang interest na binabayaran mo ay 1milllion x 8%x (1/12) sa. Kung ang hulog mo ay 8,000 kada buwan, ibabawas muna yung interest na 6,667 yung balance mula sa 8,000 na 1,333 ay ibabawas sa principal. Ibig sabihin nun yung principal loan mo ay 998,667 pagkatapus ng unanga bayad. sa susumod na buwan, magbabayad ka ulet ng 8,000. Ibabawas muna ulet ang interest ng loan (998,677×8%) x (1/12) =6,657 tapus yung balanse na 1,342 ibabawas sa principal loan. ganun po ang calculation buwan buwan.

      Iyun naman pong fixed interest loan rate, ibig sabihin sa loob ng 15 years hindi magbabago interest rate ng loan monkhit magtaas pa sila. pagkatapus ng 15 years kung anu amg interest rate nila sa taon na yun (maaring mas mataas) yun ang babayaran mong interest hanggang matapus ang loan mo

  5. Celso P. Engracio

    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.

  6. 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

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