Pag-IBIG Housing Loan: Rates and Monthly Payments

Pag-IBIG’s regular housing loan lets a member borrow up to ₱10 million over a term of up to 30 years, with up to two co-borrowers on the same loan. The interest rate is not a single number. Pag-IBIG publishes six of them, and each one is listed against a repricing period.

The purposes Pag-IBIG lists for this loan:

• buy a house and lot
• buy a condominium unit
• buy a lot
• construct or improve a home
• buy a lot and construct on it
• purchase from an accredited partner-developer
• refinance an existing loan

The published interest rates

This is the rate table Pag-IBIG publishes for the regular housing loan, laid out the way Pag-IBIG publishes it. Each rate is listed against a repricing period.

This page does not have Pag-IBIG’s own explanation of what the repricing period means or how it is applied to a loan, so none is given here. Ask Pag-IBIG to spell that out before you sign anything.

The spread from end to end is 3.25 percentage points, from 6.500% to 9.750%. Every step down the table pairs a longer period with a higher rate: 5 years to 10 years adds 0.625 points, 10 to 15 adds another 0.625, 15 to 20 adds 0.750, 20 to 25 adds 0.625, and 25 to 30 adds 0.625.

The promo rates, and when they stop

Pag-IBIG publishes two promotional rates on the same page. Both are valid until 31 December 2026 and both cover the first 3 years of the loan term.

• 4.5% for a house and lot over ₱950,000, or a condominium unit over ₱1.8 million, up to ₱4.9 million.
• 5.75% for loans over ₱4.9 million up to ₱10 million.

A separate Affordable Housing Loan exists with rates as low as 3% for minimum-wage earners. That is a different program and is not covered here.

Read the 3-year limit literally. The promo rate applies to the first 36 months of the loan and not to the remaining term. What rate applies from year 4 was not part of what was read from the source, so this page does not state one. Ask Pag-IBIG what your rate becomes after the promo period before you sign anything.

Monthly payments by loan amount and term

The rates above are official. The payments below are not. They are standard annuity arithmetic run on those rates by this site, not Pag-IBIG quotations, and they cover principal and interest only.

Read the columns this way. Each one takes a term length and pairs it with the rate Pag-IBIG lists at that same duration, then assumes that rate holds for the whole term. That pairing is a modelling assumption made here so the terms can be compared on one line. It is not a Pag-IBIG quotation, and Pag-IBIG has not been asked to confirm it.

Why the payment stops falling after 25 years

Look along any row of that table. The monthly payment falls as the term lengthens, right up to 25 years, and then it goes back up at 30 years.

On a ₱2,000,000 loan the payment drops ₱15,781 going from 5 years to 10 years, then ₱4,525 going to 15 years, then ₱1,470 going to 20 years, then only ₱401 going to 25 years. Stretch it one more step to 30 years and the payment rises ₱228, from ₱16,955 to ₱17,183.

The reason is in the published rate table. The rate Pag-IBIG lists rises as the duration gets longer, and going from 25 years to 30 years adds 0.625 percentage points. Under the pairing described above, that extra rate costs more than the extra 5 years of spreading saves, so the payment turns back up. In this table a 30-year term at 9.750% carries both a bigger monthly payment and 5 more years of payments than a 25-year term at 9.125%.

That is an observation about the published rate table and the arithmetic on this page, not advice about which term to take. Which term suits you depends on things this page does not know, and on what Pag-IBIG actually quotes you.

What the whole loan costs

Monthly payment is the number most people check. Total interest is the number that says what the loan really cost. Same arithmetic, same official rates, and the same pairing of a term with the rate listed at that duration.

A ₱4,900,000 loan taken over 30 years is projected to cost ₱10,255,484 in interest alone. That is more than twice the amount borrowed, and it is ₱9,403,036 more interest than the same loan paid over 5 years.

Put another way, here is what one million pesos costs at each term.

Borrow ₱1,000,000 for 5 years and you pay ₱0.17 of interest per peso borrowed. Borrow the same ₱1,000,000 for 30 years and you pay ₱2.09 per peso, twelve times as much, for a monthly payment that is ₱10,974 lower.

What the promo rate is actually worth

The promo covers the first 3 years only, so the fair comparison is the first 36 months of payments, promo against the regular rate Pag-IBIG lists at that same duration. The same pairing assumption as the tables above applies here.

On the ₱2,000,000 loan the promo is worth ₱4,703 a month, or ₱169,325 across the first 36 months. On the ₱6,000,000 loan it is ₱16,535 a month, or ₱595,257 across the same 3 years.

That is real money, and it is also the trap. A 4.5% payment of ₱12,653 is what you can afford; the 8.500% payment of ₱17,356 is what the loan may cost you from year 4 onward. Budget against the higher figure, not the promo one, and confirm with Pag-IBIG what your rate becomes when the 3 years are up.

What this page does not cover

The Pag-IBIG page these figures came from also carries sections on the loanable amount by income, required documents, processing, fees, insurance and eligibility. Those answers were not read from the source for this page, so nothing is written about them here rather than guessed. Get them from Pag-IBIG directly.

Related

If you are choosing between paying a loan down faster and saving, note that interest avoided at 9.750% is worth more than a dividend earned at 7.12%. The Pag-IBIG MP2 guide has the declared dividend rates from 2021 to 2025, and the MP2 savings calculator will run your own monthly amount.

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