Pag-IBIG Loans: Interest Rates, Penalties And Defaults, Part 2 of 2

This is the second part on this series of articles about the Pag-IBIG Interest rates, penalties and defaults, as the title clear suggests.

In part 1, we mentioned about the going rate of Pag-IBIG Housing Loan. In case you missed it, please click here to read the article.

In this article, we’ll touch on the following subjects:

  • Housing Loan Re-pricing
  • Late Payment Penalty on Housing Loan
  • Interest Rate for Pag-IBIG Multi-purpose Loan (MPL)
  • Penalty for Late Payment on MPL Loan

These topics will be discussed in the succeeding paragraphs.

Pag-IBIG Housing Loan Repricing

Pag-IBIG Fund says that Housing Loans over 400,000 and up to 3,000,000 is subject to re-pricing every three years at the rate at par with the prevailing market rates. The re-pricing shall be based on the outstanding balance of the loan. The interest rate to be used shall not exceed the following:

Pag-IBIG Housing Loan Repricing Interest Rate

Original Loan Amt Int. Rate
Over P 400 k to P 750 k 9.00%
Over P 750 k to P 1.0 M 10.50%
Over P 1.0 M to P 1.25 M 11.50%
Over P 1.25M to P 2.0 M 12.50%
Over P 2.0 M to P 3.0 M 13.50%

Question: What about the housing loans P 400,000 and below? Are they going to re-price it also?

Answer: Yes, Pag-IBIG may still reprice the balance every three years, but the rate to be used is still the original rate.

Pag-IBIG Housing Loan Penalty

pag-ibig housing loan repricing rateAnd what if you miss a single payment?

Pag-IBIG Fund imposes a penalty on non-payment of a full monthly amortization including the other obligations (such as membership contributions, insurance premiums, interest due and principal) which are already tucked into the monthly amortization due. The penalty is set at “1/20 of 1% of the amount due for every day of the delay.”

That’s not much for a single month, but if it becomes a habit, it could lead to a default which will be explained below.

Pag-IBIG Housing Loan Default

When you get a loan, you actually agree to pay all the obligations that go with it. In the case of Pag-IBIG Housing Loan, that means paying the monthly amortization, membership contributions, the insurance and all.

In case you fail to pay three consecutive payment dues, your account is already considered in default. If that happens, the entire balance becomes due and demandable. And since Pag-IBIG Housing loan is secured by the land title, Pag-IBIG will also indorse your property for foreclosure. Plus, it also puts a lien on your TAV – that’s your savings with the Pag-IBIG Fund.

Now the word default is a nasty thing when applied to a housing loan. You want to avoid it as much as possible.

Multi-Purpose Loan Interest Rates

The Pag-IBIG Multi-Purpose Loan is among the cheapest loan available on the market. But this loan depends on the amount you have contributed so far. The longer you have contributed and the bigger the contribution, the more loan money you can get.

As to the interest rate, it is a mere 10.75% per annum at the time of this writing. And you can pay this loan in 24 months time.

Multi-Purpose Loan Penalty For Missed Payment

Small at it may be, for some reasons, some members who availed of the Pag-IBIG MPL Loan miss paying for amount as scheduled. In such cases, the Pag-IBIG Fund imposes a penalty equivalent to 0.5% of the unpaid amount for every month of delay.

If you want to know more about the Pag-IBIG Multi-Purpose Loan, the following articles are very helpful:


This is the second and final part of a series of articles on Pag-IBIG Loan Interest rates, penalties and defaults. This article is written by Carlos Velasco.

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  • ed

    So many topics have already been discussed at this website but i’m not so sure if you have had an article about the refinancing of an existing mortgage. The purpose is when you have an existing house/lot loan of 700k at 11% interest rate per annum from the bank and planning to take advantage of the lower 7% per annum at pag-ibig. If predictably granted, can we really benefit from it or it’s almost same as bank will impose other charges to borrower. An article like what you normally did would really help us here. Thanks.

  • admin

    I really appreciate your suggestion. That’s a good topic indeed. We’ll put that on the pipeline together with the other up-coming articles.

    Many thanks!

  • VR

    hi i have a question, i missed one month of payment, dated june, and now the bill for the month of july arrived, do i have to pay all of the total bill for 2 months or is it possible to pay one month only? leaving one month to be carried out next billing? what will happen, thanks

  • claire

    good pm! po ask ko lang po iyon niloan ko po bahay amount of 129k for 2 years po. mag 4 months straight na po kc ngayon na di ako naka bayad ano na po mangyayari pag ganito? foreclosure po ba na iyon?

  • admin

    Actually if you missed 3 monthly payments, that’s already subject for foreclosure. Please refer your case to the Pag-IBIG branch where you got the housing loan.

    Ideally, you should pay both.

  • Joery

    How much is my maximum loanable amount when I am already contributing to HDMF for almost 6 years now?

  • ambo29

    What is the basis for this 24 months contribution requirements in making housing loan? Is it 24 months contribution prior to making housing loan, or have 24 months contribution and become a member yet stop paying the membership contribution (for any reasons)for two years for example and now want to apply for housing loan? Please enlighthen me on this. Thank you.

  • Eden M.Bautista

    Hi!I just want to ask my monthly billing statement.I had received my last billing statement only last January 2011 and the statement date Dec.15,2010.I have been paying the monthly amortization regularly for my housing loan but I haven’t received billing statement since then.Please provide me a copy of my payments.Thank you!

  • Egnard Baguio

    Can i inquire through enternet how much is my current balance on my housing loan?

  • fatzie

    my billing date for my loan is every 29th of the month and i missed last month’s bill. I am planning to pay 2 months’ bill on the 5th of next month instead of the 29th of this month. pwede ba yun?


    Hello po. I am an OFW and i am acquiring a loan for PHP750,000 thru pag-ibig. I f ever after 1 year we want to pay half of the loan, what is the procedure? And the interest rate it will change also?

  • kath

    hi admin

    ask ko lang po ung housing loan ko sa pag-ibig. acquired assets sya dito sa may dasmarinas cavite. for conversion na sya ng title skin as owner, kumpleto na sana requirements ko pero kailangan din pala ng tax declaration ng building. tinanong ko sa munisipyo wala daw po.
    possible po ba un na walang tax declaration ung bahay pero dati na syang nahuhulugan ng previous owner?
    di ko na mahanap ung dating developer at sabi sa munisipyo kailangan kong ipa-assess ung bahay at kumuha ng building at occupancy permit?

  • Johny Delacruz

    Hi Sir/Madam,

    If i pay my housing loan monthly amortization in advance, let us say 3 to 4 months, will i get any rebates?? What are the benefits in paying such loans in advance??

    Thank you very much.

  • admin

    The rebate is not assured, but sometimes Pag-IBIG is giving it. The main advantage about paying extra on your amortization is that you can save on the interest dues.

    Please refer to this article for more information:

    It could be possible. Some property owners are really careless about it. Where did you buy this property from? You should check it with them.

    The procedure is very simple. You just pay it upfront by going to the Pag-IBIG Branch. Make sure to keep your Official Receipt and ask them for a new schedule of amortization.
    The interest rate will normally be the same, but you will be paying lesser now as a result of that bulk payment.


    Sorry, but that’s not possible yet.

    Please ask it from the Pag-IBIG branch that handles your account.

    The maximum is P 3M.

  • imb

    sir, may i know what procedures to undertake and what office in pag-ibig shall i go to when i want to pay the loaned amount so i can already have the title of condo unit i acquired through PHINMA. urgent po

  • Angelito M. Sta. Ana

    Please supply the year initial membership of Mr. Angelito Medina Sta. Ana

  • kath

    It could be possible. Some property owners are really careless about it. Where did you buy this property from? You should check it with them.

    Acquired assets po sya ng pag-ibig. So sa pag-ibig ung property? May nag advise lang skin before kaya nung nagcheck me sa pag-ibig andun sya sa list ng acquired assets. Then nalaman ko na dati na rin syang nahuhulugan ng previous owner. The property is in Resortville Lancaan Dasmarinas Cavite. Maraming lots nun na for sale ng Pag-ibig.

  • Betty

    I have a residential lot in Rosario,Batangas. I plan to avail of housing loan to construct a house. What do I do to proceed with my loan application. Can I file my loan application here in Manila? Thanks po.

  • maricel aquino

    mam / sir may husband is OFW we have lot only in high view hills pwede po ba siya mag avail ng loan for contruct a house. for example loan lang po namin 500,000 pay for 5yrs anu po mga requirment for application.thank you so much

  • norvi

    just want to ask how about i want the pag ibig to refinance my housing loan that is in the bank, it that possible?

  • admin

    That’s possible. Please coordinate with your bank also.

    Of course. FOr the requirements of Housing Loan, please refer to this link:

    Please proceed to the Pag-IBIG Branch in Batangas. You should apply there.

  • Jaynie

    Hi Admin:

    I’m already here in US, i have an outstanding house mortgage loan. Will that be possible to continue to pay my loan directly to your office or through bank?

    Please let me know how. I appreciate it very much for your prompt reply.

    Thank you.

  • Michael Maga

    Hi Admin, I done paying my first payment of my housing loan. Do I have to continue paying my monthly Pag-IBIG contributions or It is already included in my monthly loan amortization? Is it automatic that they will include my monthly contribution in my monthly loan payment?

    Thanks a lot.

  • Mye

    Hello sir/mam,
    I’m having a 2nd thought if i continue ko pa ang housing loan namn sa pag-ibig.I found out that mas mataas ang rates of interest ng pag-ibig w/c is 9.5% compare to our existing loan sa bank w/c is only 7.88% lang. Now, here’s my question dapat ko pa bang ituloy ang refinancing when for the fact mas makakatipid ako sa bank kesa sa pag-ibig. Sa bank kc puede ako mag parecompute wherein ang mggng mo.amort na lang nmn for 15 years ay 11,700 while sa pag-ibig starting monthly amort ay 12,754 up to 14months then mggng 11,900 siya pagdating ng 15th months. Also magbabayad kmi ng panibagong set para sa MRI/Fire insurances while sa bank hnd na dhl bayad na kmi at processing of docs lang ang bbyaran nmn..Please give me the best advice whether ituloy ko ang refinancing sa pag-ibig or continue na lang sa bank at iparecompute na lang nmn..I need your advice the soonest..Maraming salamat po..

  • Ador Castro

    Hello Admin,

    I am working here in Saudi Arabia. Can I have your PAG-IBIG BANK ACCOUNT and the BRANCH where I can transfer my Housing Loan payment? Is it secured, POSTED on time and validated immediately upon transfer of loan payment?

    I am worried of my wife in coming to your office carrying cash during payment.

    Hoping for your reply and guidance.

  • admin

    Not carrying a large cash for your loan payment is very smart indeed. If you really wanted to pay a larger amount, you may want to use a check instead. Please have your wife request the Payee details at the office. Don’t really on anybody giving you this information.

    If you are getting a better deal at the bank, then go for it.

    They are separate and yes you need to continue paying your membeship contributions.

    Yes, either way it’s possible.

  • Rodel

    Good day!

    Is it possible to get a house & lot loan through PAG-IBIG even if I only have contributions for 1 year only. How much loan can I acquire?

    Hoping for your guidance.

    thanks a lot

  • Michael Maga

    My loan was approved amounting to 558,000. Based on the Pag-ibig computation, my monthly payment is 5,015.46. I am wondering why is it that I’m paying 5,724.31. I’m paying this amount(5,724.31) because it’s stated in my Account Information. My question is: Aside from the principal and the Interest that I am paying monthly is there any additional charges? Or maybe my monthly Pag-Ibig contribution is automatically added to my monthly loan payment?

  • http://pagibigfund ruben marabababol

    hi gud day, i am member of pag ibig for 10 years can i withdraw all my remittance?

  • admin

    It could include the MRI and Fire Insurance, Tax and maybe your upgraded contribution.

    It has to be at least 24 months straight.

  • Alexander Tugonon

    Good day, Iam an OFW and Im aquiring a housing loan worth 2M. My question is, If Im going to pay for a bulk payment aside from my monthly amortization, where would it be deducted? Would it be deducted automaticaly at the outstanding balance?

  • admin

    Any advanced payment that you make goes to cover the principal. To see how this works, it’s important that you understand the process of amortizing a loan. Here’s good link:

  • Elizabeth

    I recently applied for a 500k housing loan payable for 5years in Pag-ibig for a property here in Manila. Would it be possible to apply for another housing loan to purchase another property in Quezon Province?

  • admin

    You are only allowed to have one home loan at a time. That is, the first loan must be fully paid before you can get another one.

  • Chelle

    Last year my husband applied for a housing loan and it was approved, but now we have missed more than 3 payments. Is it possible to repay the missed payments and reduce the mortgage term of the loan? What step should we do? Thanks!

  • evangeline

    good day admin ngaun po january 21 ay ay pang 3 mos nmin na walang payment hindi ko po mabayaran kasi na hospital ako for bedrest mapoforeclose po ba yung house nmin pero magbabayad po kami pagkalabas na pagkalabas ko. hindi ko po mabayaran kasi wala ang husband ko he is working abroad. thanks po hoping for your answer soon

  • admin

    You can apply for a housing loan re-structuring at the branch. Please do it immediately.

    You could still save it, but you have to be quick. Apply for a loan re-structuring at the office if you have time.

  • evangeline

    good day po para saan po ung re-structuring? wala po kasi yung husband ko siya po ang ngapply ng housing loan ng bahay namin. thank you po.

  • admin

    The home loan restructuring program is for those who are having problems with the payment of their monthly amortizations. We’ll be posting a new article explaining that in details.

  • evangeline

    good day admin itatanong ko lang po kung puede pa ba maka-avail ang father ko ng housing loan ng pag-ibig kahit na 56yrs old na xa and ndi pa po xa member ng pag-ibig puede nyo po ba sya matulungan kahit na sa pinakamurang housing program nyo po kasi ngrerent cila ngaun at sayang po yung nirerent nla hindi nman nagiging sa kanila yung house. thank you po and GOD BLESS.

  • dante franco jr

    gud day po pag ibig.ask lng po kmi kng my bago po kyong acquired asset po d2 s bandang imus po..tsaka pd po b kming maghti ng aswa k s hulog ng monthly bhay po since pareho kming my work po…tnxs and pls replay me po…

  • ranil

    good day admin ask ko lang regarding sa isang subdivision marami din ang nag acquired thru your office kaso walang fence ang area kaninong concern ba yun? kinausap ko sila noon about sa fence for security sabi nila noon gawin nila til now wala padin naging talamak na kasi ang nakawan sa subdivision na yun at sa likod pa ng unit ko minsan hindi ko alam kung anung ginagawa ng mga tao, ginawa kasi nilang tambayan yun gawa ng wala man lang fence labas pasok sila kahit saan nadaan. di ako palagi sa unit ko gawa ng work ko kahit saan ako napunta di ko alam kung ngadadate ba sila o ginawang pot session.ang pangalan nag subdivision ACM Paramount, Brgy Navarro Gen Trias Cavite. at may katanungan pa ako tungkol sa pagbabayad aalis kasi ako sa loob ng 6 months sa ibang bansa hindi ba ako ma buyback 4 years na ako nagbabayad. waiting for your advise, salamat

  • IB

    Dear Pag-ibig Personnel/Admin,
    Based on the article, there’s a loan repricing every 3 yrs for loan amt 400k – 3M.
    If the loan is granted last 2006 at 12%,
    When is the schedule of repricing & how many percent?
    How to ensure that it was repriced?
    Sana you can issue the amortization schedule also with Principal & Interest indicated. How can we get it?


  • admin

    In your case, the loan repricing should be on 2009. Please consult the branch about your new schedule.

    I think you have to refer that one to the office of the HLURB.

    Please check it at the branch.

    Yes, the maximum age at the time of loan maturity can be up to 70 years old. That mean he can get a home loan that is payable in 14 years or even earlier.

  • leo

    My last payment was November of 2010 for my housing loan, basically it’s more than a year now. But, i am updated with regards to my contribution. Can I still avail of the program? Please advise how to proceed.Thanks!

  • IB

    Dear Pag-Ibig Admin,

    Thanks for your answer. However, as per coordination with your office there was no reprice made on my account. But there’s a discount of roughly about P708 (equivalent to 1.5%) which is given during the promo period. My account is updated & I am paying for more than 6 yrs at 12% per anum. Sometimes I can avail the promo discount if my issued PDCs fall on week days & not Holidays.

    In this regard, since the int rate of my existing loan is very high even if it has a discount, is there a possibility to lower the int rate? To whom should I coordinate? I know that based on my outstanding balance, they offer at 7%.
    Is it possible po ba to lower my int rate? We are planning po kasi to transfer it to the Bank with 8% int rate. which is 4% lower than Pag-Ibig.

    Need your advise & help.

    Thanks a lot.

  • IB

    Some of the Bank is now offering 7.5% for 1-3 yrs, 8% for 4-5 yrs, 9.5% for 6 yrs-up.
    However, those with existing HL at Pag-ibig who has high interest rate let say from 9% – 12% or up at hindi naman nagreprice or give consideration to lower the int rate; might as well or better to transfer the account from Pag-Ibig to Bank. Malaki pa matitipid.

  • Unknown

    Nice comment. :) Ganyan din kasi sa amin eh. Sobrang taas ng interest sa Pag-ibig. Kaya nilipat na lang namin sa Banko at kadalasan ganun ang nangyari sa iba. Biruin mo kung meron kang interest rate sa Pag-ibig na 10-12% samantalang sa Bank kayang magbigay at magre-price down to 7.5%.
    Kaya sana marealize ng Pag-Ibig at magbigay sila ng consideration. Hindi na kasi Pag-Ibig eh kundi Pang-gigipit. Nakakalungkot isipin. :(

    To Admin, sana ikaw ang maging trunkline to raise the concern to your office. Thanks. :)

  • Jovy

    To Admin,

    ganyan din concern ng relative ko. umaangal sa interest ng kanyang existing loan. Kaya sana masolusyunan.


  • Andoy

    Nice comments. Ganyan din kasi sa amin eh. Sobrang taas ng interest sa Pag-ibig. Kaya nilipat na lang namin sa Banko at kadalasan ganun ang nangyari sa iba. Biruin mo kung meron kang interest rate sa Pag-ibig na 10-12% samantalang sa Bank kayang magbigay at magre-price down to 7.5%.
    Kaya sana marealize ng Pag-Ibig at magbigay sila ng consideration. Hindi na kasi Pag-Ibig eh kundi Pang-gigipit. Nakakalungkot isipin :(

    To Admin,
    Need your comment. Thanks. :)

  • lan

    Hi Admin,

    Thanks for the information. But can you show example on how to compute for the total payment if for example I borrowed an amount of 800K Php and payable for 30 years? How do you compute the price that I am paying of 7K+ per month? I hope you can answer clearly and step by step the computation, this will help us a lot to understand and weigh our options. Thank you very much.

  • admin

    You may use the tool provided here:

    I think the explanation there is already very clear, so try it out for yourself.

    Yes, there are alternatives to Pag-IBIG Financing and sometimes I do recommend them.

    Feel free to consider the other alternatives listed here:

    I think we are on the same boat here. Sad to say, that Pag-IBIG won’t adjust the interest rate to the current rate, which is lower than the previous years.

    But, when it comes to transfering to banks, please consider all the details… It could just be a bait to get you on board.

    I’m not sure which program you are interested about, but please check with Pag-IBIG.

  • claire

    hi! i want to ask if how much i prefere money to trasfer the title in my name its 34sqm. just finish pay all my loan in pag ibig and i get the title in pag ibig its already at me but still not in my name. more or less how much it cost to trasfer it??

  • claire

    hi! admin. ask ko lang. may gusto kc bumili ng bahay ko in amount of i am selling is 1.1M. in 68sqm.pero gusto nya iloan ito sa pag ibig. do you think how much the pag ibig will appraise this amount?
    if ever he willing to pAY the rest amount w/ me in installment.

  • rfsh2012


    i will apply housing loan but my net salary for 1 month is only 8k. how much will be my expected amount to received?


  • imran

    Dear Sir,

    I’m Ruben Dampil working as OFW gusto lng pong malaman kung paano poh bang magloan sa bangko or Pagibigfund kasi bago lng poh akong member,
    ilan buwan o taon bago makapagloan sa pagibig.kc last Dec, 2011 lng poh ako nag pamember, pwede po bang i-cash ko ang isang taon o dalawang taon hulog, para makapagloan ako?
    umaasa ako na matutugunan ninyo ang aking katanungan
    kc balak kong kumaha ng bahay sa cavite for installment.
    salamat poh
    Ruben Dampil

  • imran

    Malaki poh ba ang maiitutulong ng Pagibig sa taon tulad kong mahirap?
    ano poh ang pagibigfund?kc sabi nila Pag-ibigfund katumbas Pag-gipitfund?
    sana nmn wag mali ang sabi nila……..
    maraming pong salamat.

  • admin

    For the title transfer, you need to prepare at least 10% of the appraised value of the property.

    As to your other question, the appraisal is usually, but not always, lower than the selling price.

    Please refer to this link:


    Please read about the housing loan process:

  • Joey

    Hi Admin,

    I have just recently avail of a Housing Loan thru Pagibig, just a year back. I would want to know If I can do bulk payment. We have given the developer 24PDC as according to them they are going to monitor the payment within 2 years.


  • jonathan

    hi admin,

    tanong ko lang po kung naka-align ang mga developer sa computation nyo ng loanable amount??

    Nagavail ako sa kanila at based sa computation pasok naman ako,
    selling price nila ay around P600K ang Total contract price nila ay around P862K.

    Based sa computation nila P40K equity ko at around P7K monthly ko.
    But last week ng pumunta ang developer sa PAGIBIG ang loanable amount ko lang daw ay around P781K so almost P80K lahat dapat equity ko..Kulang pako ng another P40K.

    This May 1 na move-in sched namin pero ang magiging monthly na namin mula P7K magiging P8.3K para mapunan ang kulang namin na P40K sa Equity..

    Hindi po kakayanin ng sahod ko ito, tama po ba computation nila..
    BTW taga calamba laguna po ako at CHMI developer ko.


  • Janice

    I have a question. What if I got a load for 2million pesos and it was 30 years to pay. But I wanted to pay off the 2 million pesos loan in only 6-8years? Will the interest go lower once its paid off before the 30 years?? I hope you can answer my question. Thank you.

  • admin

    Basically, you will save on the interest payments since the advanced payment the you will make goes to cover the principal. This article should be of help to you also:

    I think the computation is correct. You should expect to come up with some cash for the equity.


  • Aireen

    If pagibig member fails to pay his/her monthly amotization? How much would be the penalty per month?
    And in my case, i am confident that i am having a fund on or before my monthly due thru bank, unfortunately, this one incident happened, my monthly amortiZation has no sufficient fund so my chk bounced, i know that i have responsibility to monitor my accountabilities but what if i have overlooked one of those, is teh bank responsible to notify me? Or who should notify me considering also that the letter from pagibig was not received?

    Thank you very much.

    • admin


      The penalty is indicated in the article above. Please re-read.

      As to your check that bounced, Pag-IBIG should be the one to notify you. But you can’t rely on them to do that. So, you have to double check it with your bank balances.

  • Aireen

    Can u give me a sample of computation for one year? I was only advised after almost a year since my pdc bounced. Thank you very much

  • Wil

    Dear Admin,

    1. My loan(750k) a year ago was priced at 7% per year for 30 years with a repricing every three years. I heard the interest rate now for that amount is 6.5%. Does it mean that after three years of paying, I will have lower amortizations.
    2. How will the repricing work? Do I need to apply for it at Pagibig office? or if they do it automatically, how will I know of my new schedule?
    3. My wife will be applying for a loan (with her account). The new Housing Loan application forms now have repricing period options. Which of the choices will be more beneficial, given the positive outlook of the economy?
    4. Does Pagibig actually implement the repricing option we have chosen?

  • Remelyn

    hello admin… ask ko lang po.. last 2010 pa po ako ngloan ng 1st salary loan ko,but my agency fail to deduct it to my monthly income. now im absorbed by the company as regular employee, how can i pay for that balance?at ano po ang penalty nun..?