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Pag-IBIG Fund’s Housing Loan Interest Rates (2018)

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

Interest rates in the Philippines are currently at relatively low levels, but with rising rates and the possibility that the Bangko Sentral ng Pilipinas (BSP) will further hike rates, housing loan 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 won’t have to pay every year anymore.

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 currently offered by PAGIBIG Fund effective from July 2018 onwards.

PAGIBIG 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%

How to use the table? Choose your desired fixed payment period in the first column, and the corresponding interest rate in the second column is the interest rate of your loan for that entire duration.

What’s “Fixed Pricing Period”?

The “fixed pricing period” is how long you want to lock-in your rates. This means the interest rate won’t change or won’t be “repriced” within that 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. Even if interest rates rise, your home loan rate is locked in and fixed in 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. Depending on the market conditions at that time, it’s possible that the new interest rate could be higher. We thus suggest that you choose a longer fixed pricing period to minimize the possibility of loan default 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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2 thoughts on “Pag-IBIG Fund’s Housing Loan Interest Rates (2018)”

  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

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