Pag-IBIG Housing Loan Calculator
Calculate Pag-IBIG housing loan amounts, monthly payments, and income requirements
Calculate Pag-IBIG Housing Loan
Loanable Amount Based on Property Value
Maximum value: ₱6,000,000 (Pag-IBIG limit)
Loan and Repayment Details
Maximum: ₱6,000,000
Interest rate: 9.750%
Income Details
Example Calculation
Sample Pag-IBIG Loan
Property Value: ₱3,000,000
Loan Amount: ₱2,700,000 (90% LTV)
Repayment Period: 30 years
Interest Rate: 9.75% (30-year fixed)
Gross Monthly Income: ₱60,000
Results
Monthly Principal & Interest: ₱23,197.18
Monthly Insurance: ₱607.50
Total Monthly Payment: ₱23,804.68
Required Income: ₱68,013.36/month
Income Qualification: Not qualified (needs ₱8,013 more)
Pag-IBIG Interest Rates
Loan Limits & Requirements
Maximum Loan Amount
₱6,000,000
LTV Ratios
• Economic Housing: 95%
• Above ₱2.5M: 90%
Income Requirement
Monthly payment ≤ 35% of gross income
Insurance
0.0225% of loan amount monthly
Pag-IBIG Loan Tips
Choose longer fixed periods if you expect rates to rise
Keep monthly payment under 35% of gross income
Consider property value vs. income limitations
Factor in insurance premium costs
Prepare equity for down payment
Understanding Pag-IBIG Housing Loans
What is Pag-IBIG Fund?
The Pag-IBIG Fund (Home Development Mutual Fund) is a government-owned corporation in the Philippines that provides affordable financing options for Filipino homebuyers. "Pag-IBIG" stands for "Pagtutulungan sa Kinabukasan: Ikaw, Bangko, Industriya at Gobyerno" (Working together in the Future: You, Banks, Industry, and Government).
Key Features
- •Maximum loan amount: ₱6,000,000
- •Repayment terms: 1 to 30 years
- •Fixed interest rates for chosen periods
- •Income-based qualification (35% rule)
Calculation Formulas
Monthly Payment
Income-Based Loan Amount
Monthly Insurance
P = Principal, M = Monthly Income, i = Monthly Interest Rate, n = Number of Months
Frequently Asked Questions
How much housing loan can I get from Pag-IBIG?
The maximum housing loan amount from Pag-IBIG is ₱6,000,000. However, your actual loanable amount depends on two factors: (1) the appraised value of the property (up to 95% for economic housing ≤₱2.5M or 90% for properties above ₱2.5M), and (2) your income capacity (monthly amortization should not exceed 35% of your gross monthly income). The lower of these two amounts will be your maximum loanable amount.
What is the difference between repayment period and fixed pricing period?
The repayment period is the total duration you'll pay the loan (1-30 years). The fixed pricing period is how long your interest rate remains fixed. For example, if you choose a 30-year repayment with a 5-year fixed pricing period at 6.5%, you'll pay 6.5% interest for the first 5 years. After year 5, Pag-IBIG will adjust your rate based on market conditions, which could be higher or lower. Choosing a 30-year fixed pricing period locks your rate at 9.75% for the entire loan duration.
How much monthly income do I need to qualify for a ₱2,000,000 loan?
For a ₱2,000,000 loan with a 30-year term at 9.75% interest rate, you would need a gross monthly income of at least ₱49,094. This is calculated based on Pag-IBIG's rule that your monthly amortization (₱17,183) should not exceed 35% of your gross monthly income. For shorter terms or different interest rates, the required income varies. Use the calculator above to determine your specific income requirement.
What is included in the monthly amortization?
Your monthly amortization includes three components: (1) Principal payment - the portion that goes toward paying down your loan balance, (2) Interest payment - the cost of borrowing based on your loan rate, and (3) MRI Premium (Mortgage Redemption Insurance) - calculated at 0.0225% of the loan amount monthly. This insurance ensures your loan is paid off if you pass away or become permanently disabled before full repayment.
Can I borrow ₱500,000 from Pag-IBIG?
Yes, you can borrow ₱500,000 from Pag-IBIG provided you meet the income requirements. For a 30-year term at 9.75% interest, you need a minimum gross monthly income of ₱12,274. For a 10-year term at 7.125% interest, you need at least ₱16,679 monthly income. Additionally, the property value must support this loan amount based on LTV ratios (the property should be valued at least ₱526,316 for economic housing or ₱555,556 for properties above the economic limit).
What is the economic housing limit and why does it matter?
The economic housing limit is ₱2,499,999.99. It matters because properties at or below this value qualify for a higher loan-to-value (LTV) ratio of 95%, meaning you can borrow up to 95% of the property value. Properties above this limit have a 90% LTV ratio. For example, for a ₱2,000,000 property, you can borrow up to ₱1,900,000 (95%), but for a ₱3,000,000 property, you can only borrow up to ₱2,700,000 (90%). This affects your required down payment.
How do I calculate my monthly principal payment?
To calculate your monthly principal payment, first determine your total monthly principal and interest payment using the amortization formula. Then calculate the monthly interest (loan amount × monthly interest rate). Subtract the monthly interest from the total to get your principal payment. For example, on a ₱2,000,000 loan at 9.75% for 30 years: total P&I = ₱17,183, monthly interest = ₱16,250, so principal payment = ₱933 in the first month. As you pay down the loan, your principal portion increases while interest decreases.
Can I pay extra to reduce my loan term?
Yes, Pag-IBIG allows advance payments and lump sum payments to reduce your loan term and total interest paid. Making extra payments goes directly toward your principal balance, which reduces future interest charges. For example, adding just ₱5,000 extra per month on a ₱2,000,000 30-year loan could save you years of payments and hundreds of thousands in interest. Check with Pag-IBIG about any prepayment terms or penalties, though typically there are none for housing loans.
What documents do I need to apply for a Pag-IBIG housing loan?
Required documents typically include: (1) Completed loan application form, (2) Valid government-issued ID, (3) Proof of income (pay slips, ITR, audited financial statements for self-employed), (4) Property documents (title, tax declaration, technical description), (5) Recent member contribution receipts, (6) Spouse's consent if married, and (7) Pictures of the property. Additional documents may be required depending on employment status (employed, self-employed, OFW) and property type (house and lot, condominium, lot only).
How long does Pag-IBIG loan approval take?
Pag-IBIG housing loan processing typically takes 2-4 weeks for initial approval, depending on document completeness. The entire process from application to loan release can take 1-3 months, including property appraisal, title verification, and legal documentation. To expedite the process, ensure all required documents are complete and accurate when you apply. You can track your application status online through the Pag-IBIG Virtual Pag-IBIG portal or by contacting your assigned loan processor.