Pag-IBIG Housing Loan vs. Bank Housing Loan

Housing Loans

Are you dreaming about your future home? You’re a step closer to achieving your dream house but still having doubts about what to avail of between Bank and Pag-IBIG Housing loan? Well, worry no more because I am here to help you in deciphering what would be the best option for you in loaning for your future home! Here are 4 points to consider while choosing between Bank housing loan or Pag-IBIG housing loan. But first, let us know the difference in definition between these two in layman’s terms. A Bank Housing Loan is offered by a private bank like BPI, BDO, Union Bank, and the likes, while a Pag-IBIG Housing loan is managed by a government agency, and both of their aims are to help housing loan borrowers in building and funding their dream home. Now, let’s compare and contrast the differences between these two to better help you in choosing the right loan that is best for you.


bank offers different types of housing loans and is slightly broader. They can help you in the renovation/improvement of your house, home equity, and other flexible loan terms. While Pag-IBIG allows you to purchase a vacant lot not exceeding 1000 sqm, refinance an existing housing loan, and many more. The two are slightly different depending on the private bank that you would inquire about the loans.


Here are some qualifications for applying for Bank Housing Loan:

– Must be 21- 65 years old;

– Have been working for the same company for at least 2 years;

– Must meet the minimum monthly income requirement by the private bank you would like to apply for your housing loan;

– Different qualifications vary between banks.

Meanwhile, here are some qualifications for applying for Pag-IBIG Housing Loan:

– An active member with at least twenty-four monthly savings;

– Not older than 65 years old at the time of application and not more than 70 years at loan maturity;

– Have the legal capacity to acquire real property;

– No present nor a canceled/ foreclosed Pag-IBIG housing loan;

– Has an updated account if with an existing Pag-IBIG Loan.

           The most prominent benefit of Pag-IBIG loans is that they have less stringent conditions than bank loans, allowing practically anyone who is a paying Pag-IBIG member eligible to get a housing loan approval. As long as you are an active member and a good payer, you are eligible, and your loan will surely be approved in no time. 



 Can cover up to 80% of the total loan amount, but still varies upon the bank;

– BPI, as an example, offers 80% of the appraised value for houses and lots not exceeding 5 million, while 60% for vacant lots and condominiums;

– It will also depend on the loan type.

●    Pag-IBIG

 Offers up to 6 million and can be availed through multiple loans via an End-user home financing program;

– The member’s actual need and his capacity to pay is being considered when requesting for a certain amount;

– The total amount should not be more than 35% of the salary of the borrower.

If you are looking for a higher loanable amount and want to avail a pricier home, then you should go for the bank housing loan because they can cover up to 80% of your loan amount. This is the result of a stricter requirement of the banks when availing the loan. Pag-IBIG, on the other hand, is for the low-income borrowers and is more accommodating to them. 


Rates vary depending on which bank you choose; some offer the lowest interest rate but is accompanied by only a one-year fixing period; some offer slightly higher or lower than the others. The banks’ offers can help you save money in the long run as they always have the potential to decrease with the loan period. Pag-IBIG, on the other hand, offers a much lower rate for you to be able to acquire your dream home. Their loans are much more favorable when it comes to the terms as they will give you an ample amount of time of repayment compared to the private banks. Their fixed loan scheme below is effective July 1, 2021:

1-Yr Fixing – 5.750%  

3-Yr Fixing – 6.250%

5-Yr Fixing – 6.500%

10-Yr Fixing – 7.250%

15-Yr Fixing – 7.875%

20-Yr Fixing – 8.500%

25-Yr Fixing – 9.125%

30-Yr Fixing – 9.875%

The steps in applying for a Pag-IBIG home loan are as follows:

  1. Secure the checklist of requirements (2 Copies of housing loan application together with a recent ID Picture of the borrower and co-borrower, if applicable)
  2. Proof of Income (Payment Slip, employment contract, bank statement, audited financial statements, etc.)
  3. A copy of any valid ID (Passport, Driver’s License, SSS, GSIS, Senior Citizen’s, etc.)
  4. If purchasing through an accredited Pag-IBIG Developer, you will need a notarized borrower’s conformity.

While the required documents for applying for a Bank Housing loan will vary depending on the bank and will be much stringent compared to Pag-IBIG’S requirements because of the more considerable available amount that you can borrow. You can see these requirements through their websites.

Choosing between these two can be very subjective. It will all boil down to your preference and capacity. If you want to have a more significant amount of housing loan and are also capable of availing so, then you might want to go to your trusted bank and ask for their offers. If you want a slightly less complicated repayment method and you think you can pay off your loan as early as possible, then Pag-IBIG Housing Loan is what’s best for you. 

Having your new home has never been this easy! Now all you have to do is look for the perfect house and lot like BRIA Homes! Yes, BRIA Homes offers Affordable and Quality homes within your reach! With over fifty housing developments all over the country together with their outstanding and diverse community, which is complete with all the amenities that you will ever need. Applying for a housing loan with BRIA has now made it even easier! You can avail of this through the Pag-IBIG Housing Loan or the Bank Housing Loan. All the needed information about these two has already been mentioned above, so all you need to do is think of what best suits you! BRIA can be available through bank home loans in RCBC, UCPB, Unionbank, All bank, BDO, Chinabank, Security Bank, Maybank, Robinsons Banks, and PNB. These banks have the information you need about the interest rates and other things up on their website, together with their loan calculators that will help you in knowing how much is money that they can borrow and the repayment methods of each bank. 

Now, what are you waiting for! I know making a decision is tough, especially when it concerns your future home, but now you have the chance to make a wiser choice as BRIA Homes are available in both public and private loaning methods. It is also recommended that you ask a financial advisor regarding these loans so that you will be guided along the way with the interest rates, monthly payments / monthly amortization, and repayment methods. Either way, BRIA is here to help you achieve your dream house through its wide variety of home loan options. Think and Loan wisely!

Written by Aaron Cruz