How Much Is The Interest Rate Of Pag Ibig Housing Loan?

Are you considering taking out a housing loan from the Pag-IBIG Fund? If so, you’re likely wondering how much interest you will be paying. After all, understanding the conditions of your loan is integral to making an informed decision as to whether or not it’s the right choice for you.

Read on to find out what you need to know about Pag-IBIG housing loan interest rates.

How Much Is The Interest Of Pag Ibig Housing Loan?

The interest rate for Pag-IBIG (Home Development Mutual Fund) housing loans changes over time, but as of my knowledge, it is 5.750% to 10.000%.

Pag Ibig Housing Loan interest rates

Rates per Repricing Period, effective 01 January 2022

Repricing Period Interest Rate
1-Yr Fixing 5.750%
3-Yr Fixing 6.375%
5-Yr Fixing 6.625%
10-Yr Fixing 7.375%
15-Yr Fixing 8.000%
20-Yr Fixing 8.625%
25-Yr Fixing 9.375%
30-Yr Fixing 10.000%

Interest Rate Calculation

The interest rate on housing loans offered by the Pag-IBIG Fund is calculated using a formula that takes into account several factors, including but not limited to the amount of the loan, its maturity period, and the prevailing benchmark interest rate set by Bangko Sentral ng Pilipinas (BSP).

This benchmark rate fluctuates over time, so it’s important to be aware that your interest rate may go up or down depending on current market conditions.

The maximum interest rate currently set by BSP is 8% per annum. The minimum rate is 6%, meaning that regardless of market fluctuations, your loan will never incur an interest rate higher than 8% or lower than 6%. It is also important to note that loan terms can range from 5 years up to 30 years. Generally speaking, longer loans tend to have lower interest rates.

Affordable Payments

Pag-IBIG Fund loans are designed with affordability in mind interest payments are kept low in order for borrowers to be able to comfortably meet their financial obligations.

As such, Pag-IBIG Funds have continued offering competitively low interest rates despite recent increases in BSP’s benchmark rate.

For example, if you take out a 5-year loan with a principal amount of PHP500,000 and an 8% annual percentage rate (APR), your total monthly payment would be approximately PHP11,000 ($220). That equates to just under 4% of your monthly salary after taxes (assuming an income of PHP30,000 per month).

How Much Is The Down Payment For Pag Ibig Housing Loan?

The amount of down payment required for a Pag-IBIG housing loan varies depending on the loan amount and type of property being purchased. However, in general, Pag-IBIG requires a minimum down payment of 10% of the total cost of the property.

This amount may be higher for certain types of properties or in certain areas. It’s best to check with Pag-IBIG directly for the most up-to-date information on their down payment requirements.


When it comes to taking out a housing loan from Pag-IBIG Funds, knowing exactly how much interest you’ll be paying over the life of the loan is key in deciding whether or not it makes sense for your budget and lifestyle.

With competitively low rates set at both minimum and maximum levels and flexible repayment periods ranging from 5 years up 30 years not to mention very affordable monthly payments, Pag-IBIG Funds offer one of the best home financing deals around today.

So why wait? Apply now and start living in your dream home sooner!


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