There’s more to loans than just getting the money and paying for it. If you have been a frequent visitor to this website and you are constantly in the look out for new articles, you should already know that Pag-IBIG Loans (both Housing Loan and Multi-Purpose Loan) come with interests.
Borrowing Money Comes With A Price
No one in his “right mind” will take the risk of lending you money knowing that you won’t pay it back! Well, only friends and relatives do that. And I can’t tell you the number of horror stories I’ve heard related to that. Someone puts it best, “A fool and his money are soon parted.”
That’s why banks, non-profit foundations and other lending companies always impose interest on loans. Well, it will not be called a loan if it doesn’t come with an interest.
Going back to the topic, the interest actually serves as an incentive to the one loaning you the money. Think of it this way: When you borrow money from someone, you are actually using his money for your own purpose and the other guy is risking his money to you in the hope of getting a reward as an exchange. In this context, the interest serves as the reward, or incentive for lending you the money.
On the part of the borrower, the interest is also the cost of borrowing the money in the first place. And naturally, the cost of borrowing money is directly affected by three important factors: loan amount, loan term and interest rate.
After using the Mortgage Calculator presented here on this website, one visitor concluded as follows: “I see it’s better to buy a property in cash than finance through PAG-IBIG. The interest almost exceed the principal, you can even buy another house with that interest!”
He was right about his observation on the “interest almost exceed the principal“. But if such is the case, why would people still use a Mortgage Loan to finance their property investment? One answer is that, most people can’t afford to pay a house in a single Spot Cash payment.
(See also: Pag-IBIG Housing Loan 101.)
Housing Loan Interest Rates
The Pag-IBIG Housing Loan Interest Rates have been presented here on this website for quite a while already. (As far as I can remember, way back when the site was still in its pre-launch stage.) You can find it at the Right Sidebar of this website, just directly above the Mortgage Calculator.
But for your convenience, and since we are already on this topic, we are presenting them below.
Housing Loan Interest Rates Table
| Loan Amt | Int. Rate |
| Up to P 400 k | 6% |
| Over P 400 k to P 750 k | 7% |
| Over P 750 k to P 1.0 M | 8.5% |
| Over P 1.0 M to P 1.25 M | 9.5% |
| Over P 1.25M to P 2.0 M | 10.5% |
| Over P 2.0 M to P 3.0 M | 11.5% |
From the table, it is clear that the interest rate for Pag-IBIG Housing Loan is 6% per annum for loan amount of up to P 400,000. And the maximum housing loan amount that you can get from Pag-IBIG is P 3 million with a corresponding interest rate of 11.5% per annum.
Note: The minimum amount that you can get from Pag-IBIG Housing Loan is PhP 100,000.
A reader of this website once dropped us a message: “Is the interest rate of Pag-IBIG Housing Loan fixed for the whole duration of the loan term?”
Good question and every Pag-IBIG Member who plans to avail of the Housing Loan should know about it.
The answer? That’s reserved for the next article of this series, plus the following will also be discussed:
- Housing Loan Defaults
- Pag-IBIG Multi-Purpose Loan Interest and Penalties
So stay in touch for the part 2 of this series and all the other articles we will be posting soon.
Update Notice: Part 2 has just been posted. Check out to learn more about Housing Loan Repricing, Defaults and Penalties for late payments.
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This is the first part of a two-part series of articles on Pag-IBIG Loan Interest rates, penalties and defaults. This article is written by Carlos Velasco.
tanong ko lang po kung ako po ay nasweldo monthly ng hanggang 25,000, hanggang magkanong halaga po ng property ang pwede ko pong i-loan?
@Jean:
There’s an article that goes “How Your Income Affects Your Loan Entitlement”, please check it by following this link:
https://www.pagibigfinancing.com/articles/2011/how-your-income-and-contributions-affect-your-housing-loan-entitlement/
just wanna ask po about sa multi purpose loan eto din po b ung puede kng mag additional loan kung nakaloan n po ng housing loan? gusto ko po kasi mag additonal loan para sa pag paparenovate ng ni loan ko n house sa cabuyao. ano-ano po b ang requirements?
@neilen:
That’s right. You may use the MPL Loan proceeds to finance some minor renovations. Please check this link for an explanation of the Multi-Purpose Loan:
https://www.pagibigfinancing.com/articles/2010/the-pag-ibig-multi-purpose-loan/
pwede po ba ako mag-voluntary member? i was employed, and have a monthly salary gusto ko lang po mag-voluntary member para masigurado ko na naihuhulog yunng share ko as a pag-ibig member, somme copany kassi nagkakalttas sila pero di naaman pala naihuhulog…..
is true na interest duration lets say 15 years loaning like 504K, interest is already computed for the whole duration therefore its like 312K yung interest, then the total is 816K.
is it true na eventhough u pay advance, yung monthly amort lang mababawasan pero never mababawasan yung interest, so lets say 4,600 ung monthly amort, then if you pay advance, may tendency na maging 3k na lang yun depende sa computation, but yung interest will never be lessen.
magandang araw po,tungkol po pahuhulog sa housing loan ask ko lang pow yung almost 2yrs na po aq di nkakahulog sa house na loan ko.pwede ko pa po bang ituloy ang pag huhulog?paano ko po mapapchange ang home billing address ko sa pag ibig.nglipat pow ksi kmi ng bahay at mdyo ngkron ng problem.as of now willing ko po sana uling hulugan ang housing loan ko kung pwede pa po?thanks
hi, i have almost the same question with LANI. Will the monthly amortization change if lets say you’re always making advance payment to the principal? how does it works? please enlighten us with this!
Thank you and more power to you admin keep it up your a big help to pagibig members!
@marcus:
For smaller amounts of advance payments, it may not be practical to give you a new schedule each time you pay advance.
But for bigger amounts of payment, yes it will shorten the life of your loan.
@eloisa:
yes, you can be a voluntary member.
@Lani:
It helps if you read the article about the Amortization Schedule.
Here’s the link:
https://www.pagibigfinancing.com/articles/2011/mortgage-calculator-and-amortization-schedule-plus-how-to-save-on-your-loan-payments/
@jacquelineranzaso:
Sorry, you can’t pay any missed contributions.
As to the change of BIlling Address, please update your record by going to the branch.
hi Admin,
we had applied a housing loan worth 859,000 and with a loan term of 30 years, therefore we have to pay php 7,600 per month including the interest and the insurance…my questions are “what if we will pay in advance, let say 10,000 per month, could it be possible? if so, in my compution we can fully paid the principal amount in less than 10 years,then “what will happen to the interests,do we still need to pay the interests for the length of 30 years?”
please help me coz i’m confused!
thanks a lot and more power to you!
Hi po ask ko lang po kung panu ko kung may online inquiry ang pag ibig?
ask ko lang din po kung pwede ko bang bayaran ng direct yung balance ko ng pag ibig calamity loan ko sa branch ng pag ibig.
tsaka po may table po ba sa ammortization or penalty if di u nakakapa bayad ng clamity loan almost 3 years ko na po kasing di nhuhulugan yung clamity loan ko. since nung lumipat ako ng company na pinagtrtrabahuhan ko.
Thanks and more power
@Michael:
If you were not able to pay for your dues against your MPL Loan, Pag-IBIG will be using your Total Accumulated Value (TAV) to pay it up.
As to the online facility, you may use the one at the official webite, but it’s not fully functional yet.
@Marcus:
Advanced payment are welcomed by Pag-IBIG the calculation is quite complicate so I’d rather refer you to the branch.
hi po. tanong ko pa sana kung totoo ung nabasa ko na pag may advance 3 months payments sa loan ko (housing loan) mababawas po ba sa principal loan ko ung next payments ko? plan ko po sana dagdagan payments ko para matapos ko nang mabilis ung loan ko. saka last month po pinapunta ko mama ko sa pag ibig para macheck ung balance ko. talaga po bang di naka update ung pag enter sa payments? kasi po ung naka pasok papalng sa payments ko ung payments ko last June 2011, amy mga advance payments pa po ako.. looking forward po sa answer ninyo and God bless..
” In my case i’m a seaman and as you know we work in a contract by contract basis, how about if i’m not onboard for say 3 or 4 months, is their any payments break in our case since i am an oeerseas worker if i wish to have a housing loan? pls.let me know…thanks..
hello po good pm..plan ko pong mag loan ng MPL kc gamitn ko sa business..maka aprove kya ako kapag mag loan ako 300k at ang montly contribution ko tinaas ko ng php500 at nsa abraod ako ngaun at maari ba na if ma aprove ako ang aswa ko ang represintative ko tumangap ng pera dahil sya ang ipa open ko sa plano naming naitayo business..at kung hindi pwide na asawa ko ang kukuha ng pera panoo ko makuha ang pera gayong nasa hongkong ako..i am look forward to hear from your reply thank you ang GOD Bless
Lovelycora,
I’m afraid you can’t get that much amount. The MPL Loan actually depends on your TAV. Please read this:
https://www.pagibigfinancing.com/articles/2011/more-on-pag-ibig-multi-purpose-loan/
gud am po…pwede po bang bayaran ko agad ung remaining balance ng 1st short-term loan ko in full payment para makaproceed ako agad sa 2nd loan para mas malaki ang ma loan ko..tnx and more power
Hi Ryan,
Yes, that’s possible. Go visit the branch if you have the time.
tnx admin…last question ko po kung paano po ako magkakakaroon ng id mula sa pagibig…tnx a lot,god bless…
Ryan,
You may use this link to process your MID.
https://www.pagibigfundservices.com/
gud afternoon…ask q lng po kung pano magkaroon ng hdmf transaction card at ung security code..tnx a lot
RyanPaulo,
It depends on the transaction. Some are free, but for a housing loan, you only have to pay for the application which is 3,000.
how to get a security code?? thank you! 🙂