Philippines 💰 PHP Last updated2026-05-28

Housing loan Calculator Philippines

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Quick answer (Philippines)

A PHP 3,500,000 housing loan at 7.5% over a 20-year term works out to a monthly payment of about ₱28,196, with total interest of ₱3,266,983 over the full term.

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Mortgage Calculator

PHP

Home Value

₱

LTV 80% · No PMI ✓

Loan Amount

₱

Interest Rate

Term

Total Monthly

₱34,029

PITI

Principal + Interest

₱28,196

48% goes to interest

Total Interest

₱3,266,983

over 20 years

Monthly Breakdown

Principal & Interest₱28,196

Property Tax (1.1%/yr)₱4,010

Homeowner's Insurance (0.5%/yr)₱1,823

Total Monthly₱34,029

Principal vs Interest Split

52% principal

48% interest

✨ Live recalculation·Includes P&I, property tax, insurance. Estimates only — consult a licensed lender for exact rates.

Reviewed by

Aisha Rahman, CFP®, MBA LinkedIn ↗

CFP® with 12+ years in mortgage & retirement planning.

Local context

Housing loans in Philippines

Typical loan

₱3,500,000

in Philippines

Typical rate

7.5% p.a.

prime borrower, 2026

Typical term

20 years

most common

Market overview

Philippine housing finance is dominated by BDO, BPI, Metrobank, Security Bank, RCBC, and Pag-IBIG Fund (the state-administered employee housing fund). Pag-IBIG is the largest housing lender with a captive book of 15 million+ contributors and offers the lowest rates by far (5.875-7.125%). BSP held its policy rate at 5.75% through early 2026 with cuts expected through the year, supporting affordability.

Why 7.5% is the typical rate

7.5% reflects a typical 5-year fixed bank rate for a salaried borrower at 80% LTV in early 2026. Pag-IBIG members can access rates as low as 5.875% for amounts under PHP 1.5M, scaling up to 7.125% for higher tiers. After the fixed period, bank rates reprice to BSP + bank spread.

Tax & regulatory notes

Mortgage interest is not deductible from Philippine personal income tax for owner-occupied homes. Documentary stamp tax (DST) is 1.5% of loan amount. Local transfer tax is 0.5-0.75% of property value, plus 1.5% registration fee. VAT (12%) applies to property sales above PHP 3.6M (with various exemptions). Capital gains tax (6%) on sale of real estate by individuals — paid by the seller but factored into pricing.

🧮 Worked example

A PHP 3,500,000 housing loan at 7.5% over a 20-year term

Loan amount

₱3,500,000

Annual interest rate

7.5%

Term

20 years (240 months)

Monthly payment

₱28,196

Total interest paid

₱3,266,983

Total paid (principal + interest)

₱6,766,983

❓ FAQ (Philippines)

Common questions in Philippines.

Pag-IBIG housing loan vs bank housing loan — which is better?

Pag-IBIG is almost always cheaper than bank housing loans for amounts under PHP 6 million. Rates 5.875-7.125% vs 7-9.5% at banks. Term up to 30 years for Pag-IBIG, max 25 at most banks. Trade-off: Pag-IBIG processing is slower (60-120 days vs 30-45 days at BDO/BPI), documentation is heavier, and approval is more conservative. Higher-income borrowers buying above PHP 6M typically prefer banks for speed.

OFWs and overseas Filipino housing loans — Pag-IBIG eligibility?

Yes — Pag-IBIG accepts contributions from overseas Filipino workers (OFWs) and OFW members are eligible for the same housing loan benefits as land-based members. The 24-month minimum contribution requirement applies. Most OFW Pag-IBIG home buyers route through local Pag-IBIG branches via SPA (Special Power of Attorney) to a Philippine-based representative for property and document handling.

Foreign nationals buying property in the Philippines — financing?

Foreign nationals cannot own land in the Philippines (constitutional restriction) but can own condominium units up to 40% of any condo project's total floor area. Banks (BDO, BPI, Security Bank) offer financing for condo purchases by foreigners with valid Philippine work visa, with LTV typically capped at 50-60% (vs 80% for Filipinos). Foreign retirees on the SRRV (Special Resident Retiree Visa) get marginally better terms.

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