03/08/2025
Here are the major advantages of availing a Pag-IBIG Housing Loan, especially for Filipinos looking for affordable and flexible home financing in 2025:
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1. Low Interest Rates
β’ Rates start at 5.75% per annum for 1-year fixing and 6.25% per annum for 3-year fixing (as of 2025).
β’ 3% per annum subsidized rate for low-income earners under the Affordable Housing Program (for first 5 years).
β’ These rates are lower than most bank rates, especially for long-term loans.
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2. Long Loan Term
β’ You can pay for up to 30 years, making monthly amortizations lighter and more manageable.
β’ Ideal for minimum wage earners, OFWs, and first-time homeowners.
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3. High Loanable Amount
β’ Borrow up to β±6 million depending on your income, loan purpose, and property value.
β’ Can be used for:
β’ House and lot purchase
β’ Lot acquisition
β’ Construction or home improvement
β’ Refinancing an existing mortgage
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4. Flexible Eligibility
β’ Open to:
β’ Locally employed
β’ Self-employed
β’ Overseas Filipino Workers (OFWs)
β’ Minimum requirement: 24 monthly contributions (can be lump-sum if needed for first-time borrowers).
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5. Low Monthly Income Requirement
β’ For socialized housing, a gross monthly income of β±15,000 (Metro Manila) or β±12,000 (provincial areas) qualifies you for subsidized rates.
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6. Fixed Pricing Period Options
β’ You can choose fixed interest rates for 1, 3, 5, 10, 15, 20, 25, or 30 years, depending on your risk preference and planning.
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7. Insurance Coverage
β’ Loan includes Mortgage Redemption Insurance (MRI) and Fire Insurance, ensuring protection in cases of death or property damage.
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8. Moratorium and Calamity Assistance
β’ In times of calamity or emergency, Pag-IBIG offers:
β’ Loan payment moratorium (e.g., 1-month grace in 2025)
β’ Calamity loans
β’ Flexible payment relief programs
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9. Member Savings Dividend
β’ Part of the interest you pay goes back to your Pag-IBIG Regular Savings, which earns dividends annually.
β’ In 2025, Pag-IBIG declared record dividends due to its strong financial standing.
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10. No Hidden Charges
β’ Transparent fees.
β’ No pre-termination fee if you want to pay off your loan earlier.
