How are Philippine mortgage payments calculated?

Philippine housing loans are amortising loans using the standard formula M = P·r(1+r)ⁿ / ((1+r)ⁿ−1), where r is the monthly rate and n the number of months. Pag-IBIG offers subsidised rates around 6–8% per year, while commercial banks typically charge 7–10% with rates fixed for an initial period then repriced.

What is the maximum loan term in the Philippines?

Pag-IBIG housing loans run up to 30 years but the term plus the borrower's age usually cannot exceed 70, so most run 20–25 years. Commercial bank home loans are commonly capped at 20–25 years. A longer term lowers the monthly payment but increases total interest paid.

How much down payment do I need?

Lenders typically finance 80–90% of the appraised value, so you need roughly 10–20% down. Pag-IBIG can finance up to 100% for lower loan amounts under its socialised housing programs, while banks usually require at least 20% on higher-value or pre-selling properties.

What income do Philippine lenders require?

Lenders generally want your monthly amortisation to stay at or below about 30–35% of your gross monthly income. If your payment exceeds that, the bank will usually reduce the loanable amount, extend the term, or ask for a co-borrower.

Does this calculator store my data?

No. Every figure is computed locally in your browser and nothing is uploaded, so you can plan your purchase privately.

Philippines Mortgage Calculator

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This Philippines mortgage calculator models a Philippine home loan the way Pag-IBIG and commercial banks do: an amortising monthly repayment, then a check against the two rules that decide approval — the loan-to-value limit set by your down payment and the payment-to-income cap lenders apply.

How it works

The monthly repayment uses the standard amortising-loan formula:

M = P · r(1+r)ⁿ ⁄ ((1+r)ⁿ − 1)

where P is the loan, r is the monthly rate (annual rate ÷ 12 ÷ 100) and n is the term in months. Your loan amount is the price minus the down payment, so a larger deposit cuts both the monthly payment and the total interest.

Rates differ by lender. Pag-IBIG offers government-subsidised rates, commonly 6–8% per year. Commercial banks typically charge 7–10%, fixed for an initial 1–5 year period then repriced. The tool then checks the payment-to-income ratio — monthly payment ÷ gross monthly income — which Philippine lenders usually cap around 30–35%.

Example

A PHP 5,000,000 home with a 20% (PHP 1,000,000) down payment gives a PHP 4,000,000 loan. At 7% over 20 years the monthly amortisation is about PHP 31,012, with roughly PHP 3,442,000 of total interest. On a PHP 100,000 gross monthly income that is a payment-to-income ratio of about 31% — just inside the 35% guideline, so the loan would normally pass.

Notes

Pag-IBIG eligibility requires at least 24 monthly membership contributions, and its loan ceilings and socialised-housing rates change periodically. Bank rates reset after the fixed period, so model the repriced rate too. Acquisition taxes (documentary stamp tax and transfer tax) sit on top of the price — estimate those with a Philippines stamp duty tool. This calculator is an estimate, not a loan approval.