In this guide
- Interest rates
- Loan amounts and terms
- Processing time
- Which to choose?
Interest rates
Pag-IBIG offers subsidized rates starting at 6.25% for low-income borrowers. Banks typically charge 6.5%–8.5% with periodic repricing. Banks may offer promotional fixed rates for the first 1–5 years.
Loan amounts and terms
Pag-IBIG caps at ₱6M with terms up to 30 years. Banks have higher caps (₱20M+) and similar 20–30 year terms. Banks generally require larger down payments (20–30%) compared to Pag-IBIG (10–20%).
Processing time
Banks usually approve in 7–14 days; Pag-IBIG takes 17–25 working days. If you need to close quickly, banks have a clear advantage.
Which to choose?
Choose Pag-IBIG for lower rates and lighter requirements if you qualify. Choose a bank for faster processing, larger loan amounts, or more flexible terms. You can also combine both.
Quick Tips
- ★ Compare effective interest rate, not just headline rates.
- ★ Watch for hidden fees like MRI, fire insurance, and processing charges.
- ★ Get pre-approval from multiple banks to compare offers.
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