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Pag-IBIG Housing Loan Interest Rates




You’re interested to own a property and you’ve already researched on how you can apply for a Pag-IBIG housing loan.

How much interest do you have to pay if you are to avail of a loan from Pag-IBIG?

The answer: it depends on the loan program you will enroll in and the length of your desired loan period.

Affordable Housing Loan Program

Those earning minimum wage or with gross monthly income not exceeding P17,500 may enroll under Pag-IBIG’s Affordable Housing Program. Borrowers may avail of a loan up to P750,000. The interest rate is either 4.5% or 6.5% in the first ten years of the loan, depending on the gross monthly income of the borrower.

For example, a borrower who wishes to pay only P2,000 monthly amortization, can borrow up to P394,722.32 under this program. This is the case for a loan approved with a 4.5% annual interest rate and 30-year repayment period.

To avail of this loan, the borrower must have a gross monthly income not more than P15,000 (for NCR employees and OFWs) and not more than P12,000 (for those from the other regions in the Philippine). In this scenario, the borrower will be paying P2,000 amortization every month for 10 years, and the interest rate may be repriced after the 10th year.

End-User Financing (EUF) Program

Availment of a higher loan amount up to P6 million depends on the borrower’s actual need, loan-to-appraisal value ratio, and capacity to pay, whichever is the lowest.

The lowest interest rate under the EUF Program is 6.985%, fixed for a period of three (3) years. This means that there will be no repricing or change in interest rate for 3 years. The borrower is given the option to choose the preferred fixing period of the loan upon application.

The annual interest rates depending on the fixing periods of the loan are as follows:

  • Fixed for 3 years: 6.985%
  • Fixed for 5 years: 7.825%
  • Fixed for 10 years: 8.775%
  • Fixed for 15 years: 9.385%
  • Fixed for 20 years: 9.675%
  • Fixed for 25 years: 10.000%
  • Fixed for 30 years: 11.375%

The required gross monthly income for the borrower will depend on the desired fixing period, length of loan payment, and loan amount. Assuming the borrower chose a 3-year fixing period (with interest rate of  6.985% per year), the required gross monthly income depending on the length of the loan period and total loan amount is summarized in this table.

Required Gross Monthly Income depending on Loan Term (in Years) and Loan Amount

Loan Term / Loan AmountP500,000P1 MillionP2 MillionP3 MillionP4 MillionP5 MillionP6 Million
5 YearsP28, 277.31P56, 554.63P131, 960.80P197, 941.23P263, 921.63P329, 902.03P395, 882.43
10 YearsP16, 575.89P33, 151.77P77, 354.13P116, 031.20P154, 708.23P193, 385.30P232, 062.37
15 YearsP12, 828.43P25, 656.86P59, 866.00P89, 799.00P119, 731.97P149, 664.97P179, 597.97
20 YearsP11, 062.83P22, 125.69P51, 626.60P77, 439.87P103, 253.17P129, 066.47P154, 879.77
25 YearsP10, 083.17P20, 166.37P47, 054.83P70, 582.27P94, 109.67P117, 637.10P141, 164.53
30 YearsP9, 489.94P18, 979.86P44, 286.37P66, 429.53P88, 572.73P110, 715.90P132, 859.07

To use this table, let’s say you want to take a P1 million loan from Pag-IBIG. You prefer to pay this for 20 years and you opted for a 3-year fixing period. Looking at the table, Pag-IBIG will require you to show proof that you are earning a gross income of at least P22,125.69 per month.

If you are ready to take a Pag-IBIG loan, check out our post on how you can apply for a PAG-IBIG housing loan!

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About this post: what is fixing period in pag ibig, what is repricing period in pag-ibig housing loan, pag ibig loan computation, repricing period pag ibig, repricing period pag-ibig meaning

3 thoughts on “Pag-IBIG Housing Loan Interest Rates”

  1. juan says:

    Barrowing Housing Loan from Pag-Ibig is not easy. I mean the procedure is complex.

  2. Marc says:
  3. Jimon Fernandez says:

    is this updated up to now? (April 28, 2017)
    T.I.A.

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