How To Calculate Penalty Of Pag Ibig Housing Loan?

A Pag-IBIG housing loan is a very useful tool. It helps you finance your home and allows you to pay it off over time. But what happens if you fail to adhere to the payment schedule? The good news is, Pag-IBIG has a penalty system in place that helps keep borrowers in check.

Let’s take a look at how the penalty system works and how to calculate your penalty should you miss a payment.

How Penalties Work

If you fail to make your scheduled payment on time, you will be charged a penalty of 2% per month on the amount that was due. This penalty will accumulate until the full amount is paid or until it reaches 10%.

So, for example, if you miss one month’s payment of P5,000, then your penalty would be P100 (2% of P5,000). If you miss two months’ payments, then your total penalty would be P200 (2% of P5,000 x 2). And so on.

It’s important to note that these penalties are only applied when payments are late; they do not apply when payments are made early or on time. Also, if your loan balance is zero (i.e., if you have paid off all of your loans), then no penalties will be assessed regardless of when payments are made.

How To Calculate Penalty

Calculating your Pag-IBIG housing loan penalty is actually quite straightforward. All you need to do is take the amount due for each missed month and multiply it by 0.02 (which represents the 2% monthly interest rate).

For example, if the amount due for one missed month was P5,000, then your total penalty would be P100 (P5,000 x 0.02). Again, this does not apply if the loan balance is zero or if payments were made early or on time; it only applies when payments are late.


The Pag-IBIG housing loan’s penalty system helps ensure that borrowers adhere to their payment schedules and also serves as an incentive for them to make timely payments as well.

Understanding how this system works and how to calculate penalties can help borrowers remain in compliance with their loans and avoid any potential financial issues down the road. With this knowledge in hand, borrowers can rest assured knowing that their loans will remain in good standing as long as they fulfill their obligations on time each month.


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