Pag-IBIG Housing Loan Monthly Amortization Table 2025

Pag-IBIG Fund is an institution that aims to help Filipino citizens by catering them with different types of loans such as a simple salary loan and multi-purpose loans. Their housing loans somehow have a different way of being computed. In this article, we will be teaching you how you can compute the Pag-IBIG Housing Loan monthly amortization and the table of the percentages.

Every year, the Pag-IBIG renews its table, making it member-friendly if I must say. This year, Pag-IBIG released the newest computations and monthly amortization table for those people or members looking to get a housing loan from Pag-IBIG. Since then, they are existent to assist Filipino workers in achieving their dreams by buying a house, renovating one, and funding their needs.

Read: How to Apply for Pag-IBIG Fund Multi-Purpose Loan (MPL)

What is a Pag-IBIG Housing loan amortization?

A Pag-IBIG Housing Loan amortization refers to the regular monthly payments a borrower makes to repay their housing loan from Pag-IBIG. Each monthly payment typically covers two components:

1. Principal – The portion of the payment that goes towards reducing the original loan amount.
2. Interest – The portion that goes towards paying the interest on the loan, calculated based on the outstanding principal.

How it Works:

• Amortization Schedule: When you take a Pag-IBIG housing loan, an amortization schedule is created, detailing each monthly payment over the life of the loan. In the early stages of repayment, a larger portion of the monthly payment goes toward interest, with less going toward the principal. As time passes, more of your payment goes toward reducing the principal.
• Fixed Monthly Payments: Your monthly amortization (payment) stays the same for the entire term unless you choose a repricing period. This means that the interest rate will only change at certain intervals (e.g., every 3 or 5 years), depending on the repricing option you selected.

Although there are calculators all around the net, it would still be better if you have a rough idea of how things work, right?

To give you a head start, Pag-IBIG recently upgraded their payment schemes and extended the allowed number of years to 30 years. Before, you can pay only at a maximum of 25 years.

Pag-IBIG housing loan monthly amortization table 2025

Having that said, the Pag-IBIG housing loan monthly amortization table this year effective 01 July 2024:

If you still think it’s rocket science, let me break it down for you a little bit. If you go an apply for a loan and your preferred payment period is 1 year, the interest overall would be 5.750%. Meaning if you go and apply for a loan worth Php100,000.00 the monthly amortization would be Php8,812.50 for twelve (12) months.

• Loan Amount (100, 000) x (5.750%) = 5, 750.00
• 5, 750.00 + 100, 000 = 105, 750.00
• 105, 750.00 / 12 = 8, 812.50 (Monthly Amortization)

You just have to take the principal amount and multiply it to the percentage which will be based on the repayment years. In this scenario, you’ll have to pay a little under Php9, 000.00 per month to satisfy the loan in a year.

Read: Pag-IBIG Housing Loan: Everything You need to Know

What are the documentation requirements you need upon the loan application?

You don’t need to go somewhere far to obtain the required documentation, as a matter of fact, you can have most of them in under a week. Here’s what you will need:

• Membership Status Verification Slip (MSVS)
• Housing Loan Application (two copies)
• Recent photo ID of the borrower

In addition to those documentation requirements, you would also need proof of income requirements. To see the list, go to Pag-IBIG Housing Loan. You would also need other requirements upon the release of the loan, you can also see that list on the link I gave.

Read: How to Apply Pag-IBIG Fund Housing Loan Online

Computing for the monthly amortization or simply knowing how it’s computed is not actually difficult. As a matter of fact, it just involves simple math and you just need to know what the percentage is. So what are you waiting for? Gather all of the requirements and expect Pag-IBIG to approve your loan.

Frequently Ask Questions (FAQ)

Does Pag-IBIG have a Ceiling on Interest Rate?

Yes, Pag-IBIG Fund has set ceiling interest rates for its housing loans, which vary depending on the loan amount, the chosen loan term, and the repricing period. While Pag-IBIG does not have a strict “ceiling” rate that it will never exceed, it offers fixed interest rates for certain periods (e.g., 1 year, 3 years, 5 years) to help borrowers lock in rates for a while. These rates may be subject to adjustments based on economic conditions.

How Does Pag-IBG Compute Housing Loan Affordability?

Pag-IBIG computes Housing Loan Affordability based on several factors to determine how much a borrower can comfortably repay. The affordability assessment ensures that the borrower’s monthly amortization (housing loan payments) will fit within their financial capacity without causing excessive financial strain.

Key Factors Considered in Pag-IBIG’s Affordability Computation

1. Gross Monthly Income:
   • Pag-IBIG uses your gross monthly income (before taxes and other deductions) to evaluate how much of your income can go toward loan payments.
2. Monthly Repayment Capacity:
   • Pag-IBIG generally allows up to 35% of your monthly gross income to go toward housing loan payments. This means that your monthly amortization should not exceed 35% of your income to ensure affordability.
   • Maximum Monthly Amortization = Gross Monthly Income × 35%
3. Loan Amount Eligibility:
   • Based on your repayment capacity (35% of your gross income), Pag-IBIG will compute the maximum loan amount you are eligible for. The higher your monthly income, the higher the loan amount you can afford.
4. Interest Rate and Loan Term:
   • Interest rates and loan terms also play a significant role in affordability. Lower interest rates and longer loan terms can reduce monthly payments, making a loan more affordable. Shorter terms may increase monthly amortization but reduce total interest paid.
5. Outstanding Debts or Financial Obligations:
   • If you have other existing loans or significant debts, these may affect your affordability, as Pag-IBIG takes into account your overall financial obligations to ensure you can meet your housing loan payments.
6. Loan to Value Ratio (LTV):
   • The LTV ratio is the amount of loan compared to the property’s value. Pag-IBIG may offer loans of up to 95% of the property’s value for loans under the Affordable Housing Program or up to 90% for regular housing loans. However, the loan you can afford will still be subject to your monthly income.

Affordability Computation Example

• Gross Monthly Income: ₱50,000
• Max Monthly Amortization: ₱50,000 × 35% = ₱17,500

Based on this, Pag-IBIG will compute the maximum loan amount you can afford based on the prevailing interest rate and loan term.

What is the Maximum Payment period for a Pag-IBIG Affordable Housing Loan?

The maximum payment period for a Pag-IBIG Affordable Housing Loan is 30 years. However, the loan term you qualify for depends on several factors, including:

• Age of the borrower: The loan term should not exceed the difference between the borrower’s age and 70 years old. For example, if you’re 40 years old, the maximum loan term would be 30 years, but if you’re 50 years old, the maximum term would be 20 years.
• Loan amount and property value: The term also depends on the loan amount and the value of the property.

The Affordable Housing Program (AHP) is specifically designed for low-income earners, with special interest rates as low as 3% per annum for eligible borrowers.

Borrowers can opt for a shorter loan term if they prefer to pay off the loan more quickly, though shorter terms come with higher monthly amortizations.

Read Also:

• A Guide on Bidding and Purchasing Pag-IBIG Foreclosed Properties
• Pag-IBIG Housing Loan: Everything you need to Know