As 2025 comes to an end, many homebuyers are asking the same important question:
“Mas mababa ba ang interest sa Bank o sa Pag-IBIG this 2025?” With the official and complete interest rate data now available, this guide provides a clear, updated, and unbiased comparison between Pag-IBIG and Bank Housing Loans — helping you decide which option is best suited for your dream home and financial goals.
(Official Fixing Period Chart)
| Fixing Period | Interest Rate |
|---|---|
| 1 Year | 5.750% |
| 3 Years | 6.250% |
| 5 Years | 6.500% |
| 10 Years | 7.125% |
| 15 Years | 7.750% |
| 20 Years | 8.500% |
| 25 Years | 9.125% |
| 30 Years | 9.750% |
Among the lowest standard interest rates in the Philippines
Longer payment terms (up to 30 years)
The 5-year fixing rate (6.5%) matches the best bank promo of 2025
Pag-IBIG remains a strong option for long-term, affordable housing loans — especially for first-time homebuyers and middle-income earners.
Once the buyer signs any of the following documents:
| Category | Winner | Details |
|---|---|---|
| 💰 Lowest Interest Rate | Pag-IBIG | 1-year fix = 5.75%, 3-year fix = 6.25% |
| 🔒 5-Year Fixing Period | TIE (Pag-IBIG & BDO) | Both offer 6.5% |
| 📆 Longest Fixing Options | Pag-IBIG | Offers up to 30 years |
| 💸 Loanable Amount | Banks | No limit; ideal for luxury/high-value homes |
| 🏘️ Low-Income & Socialized Housing | Pag-IBIG | 3% interest under 4PH program |
After turnover, you’re the legal owner — and just like a car owner, you must protect your investment.
A single typhoon or flood can cause thousands of pesos worth of damage. Without insurance, you’ll have to shoulder repair costs alone. That’s why having Fire and Acts of Nature (AON) Insurance is crucial, especially for homes under bank or Pag-IBIG financing. This insurance covers your home against natural disasters and unforeseen accidents, ensuring that when calamities strike, your property and peace of mind are protected.
Pag-IBIG’s Expanded Pambansang Pabahay para sa Pilipino (4PH) offers a 3% annual interest rate for the first 10 years, exclusively for:
In 2025, Pag-IBIG remains the top choice for those seeking the lowest interest rates and long-term affordability.
If your goal is long-term affordability with lower interest rates, Pag-IBIG remains the smarter and more stable choice. Its extended fixing periods and government-backed programs make it ideal for first-time and middle-income buyers.On the other hand, if you’re aiming for higher loan amounts, faster processing, and are investing in a premium property, bank financing gives you more flexibility and access to special promos like BDO’s 6.5% rate.
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