Home HOW TO? Pag-IBIG Housing Loan: How Much Can You Borrow?

Pag-IBIG Housing Loan: How Much Can You Borrow?

pag-ibig housing loan

Pag-IBIG Housing Loan-Owning a house is one of the goals of a Filipino. But owning a decent home requires a lot of hard work and perseverance for someone to accomplish it.

Luckily, the Pag IBIG housing loan continues to develop to meet the housing needs of every Filipino, including the minimum wage earner workers.

The Pag-IBIG Housing Loan allows you to borrow up to Php6 million to acquire a residential lot, a house and lot, or a condominium unit. You may also avail of a loan for house construction, home improvement, or renovation, or even refinance an existing housing loan.

So, if you are planning to build your own house through the Pag-IBIG Housing Loan, this article will show how much you can borrow from the said housing loan.


The Pag-IBIG Fund, also known as the Home Development Mutual Fund (HDMF), is a government corporation where you can avail of a housing loan. It is an excellent alternative to banks as it offers a higher savings rate over time. The fund was established on June 11, 1978, to serve the basic needs of Filipinos.

Pag IBIG is not just a government office you go to if you want to avail of a housing loan. It is also an excellent alternative to a bank because the money you put in your Pag IBIG savings earns higher interest (4-5% versus 1% per annum offered by most banks) over time.

Your Pag IBIG savings also serve as a monetary deposit that will qualify you not just for housing loans but also for other Pag IBIG products like calamity loans and multi-purpose loans.


The affordable housing loan program is for workers who earn minimum wage whose gross monthly income doesn’t exceed Php 17,500. On account of this, the maximum loanable amount is up to Php 750,000.


The regular housing loan program, on the other hand, is where Pag IBIG members with an above-minimum salary can secure a housing loan worth up to Php 6 million.

However, the final loanable amount that will be authorized by Pag IBIG will be based on the lowest of the following:

  • Member’s actual need
  • Chosen loan amount
  • The loan amount is based on the member’s capability to pay. If you’re availing of a housing loan less than Php 1,250,000, the monthly amortization should not exceed 35% of your gross monthly income as a rule. Meanwhile, for housing loans above Php 1,250,000, the monthly amortization should not exceed 30% of your gross monthly income. Learn more about monthly amortization/salary deduction here.
  • The loan-to-appraised value (LTV) ratio is a measure of how uncertain you are as a borrower based on two factors: the loan amount and the value of the property you wish to acquire at the prevailing market rate.


To simplify, the higher your contributions are, the higher the loan amount you can avail of from the Pag-IBIG Housing Loan.

Refer to the table below to give you an idea of how much you can borrow from the Pag-IBIG housing loan Fund:

Monthly Membership Contribution Possible Loan Amount
P200 Up to P500,000
P250 P500,000 – P600,000
P300 P600,000 – P700,000
P350 P700,000 – P750,000
P400 P800,000 – P900,000
P450 P900,000 – P1,000,000
P500 P1,000,000 – P1,100,000
P550 P1,100,000 – P1,200,000
P600 P1,200,000 – P1,300,000
P650 P1,300,000 – P1,400,000
P700 P1,400,000 – P1,500,000
P750 P1,500,000 – P1,600,000
P800 P1,600,000 – P1,700,000
P850 P1,700,000 – P1,800,000
P900 P1,800,000 – P1,900,000
P950 P1,900,000 – P2,000,000
P1000 P2,000,000 – P2,100,000
P1500 P3,000,000 – P3,100,000
P2000 P4,000,000 – P4,100,000
P2500 P5,000,000 – P5,100,000
P2950 P5,900,000 – P6,000,000



Filipinos usually count on two housing loan providers in building their dream house or buying a property. It can be either a Pag-IBIG housing loan or a bank.

Each provider has its advantages and disadvantages. In the end, your decision would be based on what you think will suit you better, depending on your criteria.

However, preference should be given to aspects that matter more like qualifications, loanable amount, interest rate, loan term, and miscellaneous fees.

Qualifications: Pag IBIG housing loan only offers loans to its members. Most banks, on the other hand, don’t require loaners to be a member or savings account holders in order to become entitled to their housing loans, provided that the applicant can show proof of income and/or employment.

When applying for bank housing loans, minimum wage earners are more prone to get rejected. After all, banks are still businesses, and they have the privilege to reject your application if you can’t prove that you have the capability of paying off your loans.

To give low-income earners the chance to have their own house, the Pag-IBIG also has an Affordable Housing Loan Program specifically designed for low-income earners.

Loanable amount: Borrowers under the Pag-IBIG  Housing Loan Program can acquire housing loans up to Php 750,000. At the same time, regular members who earn above-average income can borrow up to Php 6 million.

Meanwhile, banks have a standard minimum loanable amount of Php 300,000. For both housing loan providers, the final loanable amount depends on several factors or criteria anchored by the provider itself.

Interest rate: Those who are acquiring Pag-IBIG housing loans take pleasure in lower interest rates as low as 3% for low-income earners and 5.375% for regular housing loan borrowers in a fixed 1-year pricing period.

Therefore, Pag-IBIG housing loans can now go against banks that offer housing loans with a similar interest rate of 5.5% for the first year and up to 6.50% for a 3-year fixed pricing period.

Furthermore, the Pag-IBIG housing loan isn’t allowed by law to increase its interest rate beyond 2% per annum. However, banks don’t have a ceiling on the interest rate.

Loan term: In Pag-IBIG housing loans, borrowers can select how long they’ll pay off their housing loan, with 30 years as the maximum loan period. Depending on the purpose of the loan, banks offer loans with a repayment period ranging from 20 to 25 years.

Miscellaneous fees: Pag-IBIG housing loan program assures applicants that they will not be charged with other costs other than the Php 1,000 payment during the application and another Php 2,000 before the loan release.

Fees may comprise an appraisal fee of up to Php 4,000, a handling fee of Php 5,000, a notarial fee of Php 500, as well as doc stamps tax and registration fee depending on your bank.

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