Why ₱5 million is in the 5.75% tier
Pag-IBIG’s 2026 promo has two tiers, both fixed for 3 years: 4.5% for loans above the socialized ceiling up to ₱4.9 million, and 5.75% for loans above ₱4.9 million up to ₱10 million. The rate depends on the loan amount, not the house price.
- Monthly rate: 5.75% ÷ 12 ≈ 0.4792%.
- 360 payments over 30 years.
- Amortization = ₱5,000,000 × 0.004792 ÷ (1 − 1.004792−360) = ₱29,178.64.
- Income needed at 35%: ₱29,178.64 ÷ 0.35 = ₱83,368 a month.
Tip: borrowing ₱4.9 million instead
If you can add ₱100,000 to your down payment and borrow ₱4,900,000, the rate drops to 4.5% and the amortization to ₱24,827.58 — about ₱4,351.06 less every month during the promo years.
Payments around the ₱4.9M line (30 years)
| Loan | Rate | Monthly | Income needed |
|---|---|---|---|
| ₱3,500,000 | 4.5% | ₱17,733.99 | ₱50,669 |
| ₱4,000,000 | 4.5% | ₱20,267.41 | ₱57,907 |
| ₱4,900,000 | 4.5% | ₱24,827.58 | ₱70,936 |
| ₱5,000,000 | 5.75% | ₱29,178.64 | ₱83,368 |
| ₱6,000,000 | 5.75% | ₱35,014.37 | ₱100,041 |
| ₱8,000,000 | 5.75% | ₱46,685.83 | ₱133,388 |
| ₱10,000,000 | 5.75% | ₱58,357.29 | ₱166,735 |
After 3 years
After 36 payments the balance is about ₱4,795,419. If it reprices at 6.25%, the amortization becomes about ₱30,675.43. The jump is smaller than in the 4.5% tier because 5.75% is already close to the regular rate.
Big loans also need a property with enough appraised value, and Pag-IBIG checks your contributions and credit record. Use the figures here to plan, then confirm with Pag-IBIG or your developer.
Is a ₱5 million loan right for you?
A useful habit is to test your budget at the higher rate you might pay later. Use the calculator’s “Other rate” option and try 6.25% or 6.5% over the same term. If that payment still fits within about a third of your household’s gross income, you have a safety margin.
For bigger loans, Pag-IBIG looks closely at the appraised value of the property, your employment or business records, and your contribution history. Co-borrowers (for example, a spouse) can add their income to pass the 35% test. Developers often help with the paperwork, but you can also apply directly at a Pag-IBIG branch or through Virtual Pag-IBIG.
Tip: ask your developer whether the unit is eligible for the Expanded 4PH promo and when your loan will be released — the promo applies to applications received until 31 December 2026.
FAQ
How much is the monthly amortization of ₱5 million in Pag-IBIG?
₱29,178.64 a month at the 5.75% promo rate over 30 years, principal and interest.
Can I get 4.5% for a ₱5 million loan?
No — 4.5% is only for loans up to ₱4.9 million. A ₱4,900,000 loan at 4.5% costs ₱24,827.58 a month.
What income do I need for ₱5 million?
About ₱83,368 gross a month (you and co-borrowers), so the amortization stays within 35% of income.
Sources (checked 5 November 2026): Pag-IBIG Fund promo housing loan rates under the Expanded 4PH program — 4.5% and 5.75% fixed for 3 years, applications received until 31 December 2026, maximum loan ₱10 million (Pag-IBIG announcements reported by the Philippine Daily Inquirer, 19 June and 10 July 2026, and Daily Tribune, 18 June and 7 July 2026); regular rates by repricing period effective 1 July 2023 (Pag-IBIG Fund release via PCO); 3% subsidized rate and ₱950,000 socialized ceiling for house-and-lot (Pag-IBIG / DHSUD); capacity-to-pay limit of 35% of gross monthly income, 30-year maximum term and age 70 at maturity (HDMF Circular No. 403, Affordable Housing Program guidelines; same limits apply in Pag-IBIG regular housing loan guidelines). Always confirm your rate with Pag-IBIG (pagibigfund.gov.ph) before you sign.