REAL ESTATE LAWS AND REFERENCES 5.14

What are the interest rates in Pag-ibig and it’s maximum loan?

The maximum loan now is 6 million pesos. The interest rate will now depend on the number of years fixing. 3 year fixing offers the lowest interest. This means that within 3 years, the interest remains the same, thus, the monthly amortization will not be changed. After 3 years, the interest rate would change and so the monthly amortization may also change either increase or decrease depending on the economic situation of the Philippines. But Pag-ibig has a ceiling of 2% increase or 2% decrease per annum, thus, the members are still protected.

The following table is the interest rate, terms, years fixing and factors that are useful for computing monthly amortizations: