In terms of Housing loan, which one is better? Bank financing or Pag-ibig? Thanks!

January 11, 2012 | By Fitz | Filed in: Loans, Debts & Credit Cards.

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20 Responses to “In terms of Housing loan, which one is better? Bank financing or Pag-ibig? Thanks!”

  1. Fitz says:

    Thanks for this question… I don’t have a house yet so this is interesting for me to.

    Personally, I plan to use bank financing simply because I stopped contributing to my PAG-IBIG when I left the corporate world. But if most responses here would recommend using the Home Mutual Development Fund (Pag-ibig) then I might reconsider activating my membership.

  2. erds518 says:


    heres is the comparison between the 2 house financing

    for example the TCP (total contract price) of a house is 850000

    first the down payment
    There should be a down paymenrt right?
    in PAGIBIG
    5,500 per month for 12 months

    in Bank financing
    11000 per month for 6 months

    PagIBIG- 5500 per month for 30years

    Bank financing
    12000 permonth for 10 Years

    Its up to you what do you think is much better,

    In price PAGIBIG is definitely cheaper BUT LONGER spending

    in Banking ABviously much expensive but in a SHORTER TERM


    Hope it enlightnes all of us

  3. Fitz says:

    You’ll have smaller monthly payments with PAGIBIG, but the spending will be very long and the over-all cost will be more expensive.

    With a bank loan, you’ll have higher monthly payments, but the spending will be shorter and the over-all cost will be cheaper.

    Is my calculation / interpretation correct?

  4. erds518 says:


    sir tama po kayo,

    kung titingnan natin mas matagal ang pagibig financing and much expensive than banking

    BUT lets consider this, the goverment did this to help our fellow individuals to have a decent home so its still up to the person which payment scheme he will choose

  5. abby says:


    woah!!..pag-ibig may be cheap but the spending is longer than expected! THANKS FOR THE INFO!

  6. eagleeye says:

    HDMF loan i think is relatively cheaper compared to Bank loan.

    Here’s the mortgage calculator for HDMF,, I tried putting in 1M loan for 20yr tenor. The annualized interest rate you’re paying is around 3.736%, see

    On the other hand, here’s the rates from BPI website, For a 20yr loan, you need to pay 11.5% pa.

    For a long-term loans, they normally give you floating rates, it means they could change the interest you pay overtime subject to market conditions.

    NOTE. These are only indicative rates based on online references, the info could have been outdated. You need talk to the creditor if you need accurate info.

    I’m also looking at getting mortgage loan soon, I’d like to know too what you will find out.

  7. bluepeso says:

    one consideration in getting a loan even in bank or pag-ibig – you should evaluate yourself in financial aspect if you were able to pay the MA

    from the expert : MA should not exceed 30% of your income

    ex. if you earn 50k/month your MA should be in range of 10-15k

  8. baj says:

    I agree with bluepeso (evaluating ones capacity to pay). If you have a stable business/job that would last atleast 10 years or have some resources to pay the high interest rate of banks, you can go for it (less hassle). But if you are hesitant on your current income status, then PAG-IBIG is a better choice.

    I am also thinking of reactivating my PAG-IBIG membership because I am now an online consultant just like a project-based system with no stable income.

    Looking at the thread, I hope someone from PAG-IBIG or any bank could shed light on this matter or give us heads up what may be beneficial or problematic with either of the two so we can weigh our options.

    Good thread 🙂

  9. MrsWise says:

    Im planning to pay 80% balance of my condo unit in Makati through bank loan or BDO.
    As of date, the indicative rate of BDO is about 9.75% per annum in 5 years while as per the Pagibig calculator, i will be paying off around 11% per annum in 5 yrs if i have to loan P2M.
    I guess, the BDO scheme suits me better. We’ll, i hope BDO wont change the rate soon.

  10. anne marie rallos says:

    hi po, good morning… ask k lng po kng anung bangko ako pwd mag bayad para s pag ibig? tnx and god bless

  11. Dexter Quinones says:

    If you are purchasing a lot… ill choose pagibig because lots never depreciate in general. Long payments and even if you compute, for example you loaned 1M and the total payment after 30 years will be 4M its still reasonable because in thirty years you might be earning 100,000 per month minimum and your property might be 10-20M worth… just an estimation especially when you are within metro manila.

  12. apple says:

    Hi.ask kulang po.kukuha sana ako nang bahay but hindi ako member nang pag ibig.ano po ba yung inhousing?

  13. tony says:

    i think pagibig is still better..long term payment term sa pagibig loan doesnt mean at it should be that long. pwede kc mag-advance payment against total contract price.

  14. mark penaflor says:

    hi,ask ko lang po,
    gusto ku pong kumuha ng bahay.. house and lot worth 1,9m
    pano po process for bank financing… tnx

  15. adpaizar says:

    I am an OFW and I applied for HMDF Housing Loan in August 2013 while on vacation in the Phils, with my 800sqm homelot as collateral. I am pissed off because up to now still unapproved and no releases yet. My wife is now super stress bcoz she is ha sto travel 2 hours just to reach the nearest pag-ibig office. Documents here need to be sent to Phils. But that’s fine, we need to provide right documents.

    Now, after 7 months, i was told by my wife that in our applciation, i will only start paying MA after completing the 4 releases (30-30-30-10 %ages) in accordance to program of work percentages. And, the 1st, 2nd and 3rd releases will start accumulating interest on top of the MA i will be paying. So I called our contact person in pag-ibig to verify and she said the YES it is and it will be 6.975%,, but i am so sure if this is per annum, per month or days..

    How it is calculated, i dont know.. anyone? please help me clear this.. thanks

    I hope i will get an idea here..

  16. ann says:

    Mas matagal na payment terms mas malaking interest in the long run?

  17. ann says:

    At san po usually nag papa annotate? kasi individual lang po ako na mag proprocess ng loan. Thanks 🙂

  18. Leah morales says:

    Ung property n gusto nmin bank and in house lng pde pano po kya mt transfer un s pag ibig kz 13 yrs n ding member ng pag ibig ang asawa ko salamat

  19. I think much better pa rin kumuha ka ng housing loan sa pag-ibig, Sa Bank pag di ka nakahulog ng 3 buwan kukunin nila bahay mo(business eh), Sa Pag-ibig hindi sila basta basta nag papaalis kahit ilan taon ka pa hindi nakakahulog basta makipagusap ka ng maayos sa Pag-ibig at discuss mo kung bakit di ka nakakabayad. Ang MAIN Goal ng PAG-IBIG Housing Loan ay may bigay ng BAHAY hindi magpalayas ng may bahay.

  20. slbt says:

    so kung mag loloan ka sa pag-ibig or sa bank, makakalipat na ba kayo sa bahay? or hihintayin pa bago maka tapos mag bayad

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