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Understanding Pag-Ibig Repricing/Fixing Period and Amortization Period

Repricing period, also referred to as cycle, tenor, or fixing period, is the period for which the interest indicated will apply. After this period interest rates will be repriced, to either go up or down depending on economic factors prevailing at the time of repricing. You probably have noticed that the longer the repricing period, the higher the interest rate which, at initial glance, could be a disadvantage for you. However, choosing a longer repricing period offers you the protection of having a fixed rate, regardless of any fluctuations, particularly upward movements, due to economic conditions. We advise that you consider and weigh all the factors that could affect rates in the future and strike a balance between paying a higher fixed interest rate as against hedging your bets for better and lower rates in the future.  Here is the table for Pag-Ibig Repricing/Fixing Period effective July 1, 2016.  (Rates may change without prior notice)

Interest Rates (based on Fixed/Repricing Period)
1 Year 3 Years 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years
5.500% 6.500% 7.270% 8.035% 8.585% 8.800% 9.050% 10.000%

Loan Term or Amortization Period, on the other hand is the duration or length of loan until you complete the payment.  Pag-Ibig offers very affordable terms that can be stretched up to 30 years.  The loan term is not dependent on the repricing or fixing period you have chosen.  For example, you can choose a 3-year repricing for a 15-year term.  That means you can expect a repricing 5 times during the entire term.

You can try our Amortization Calculator below.  Make sure to use the correct interest rate for the repricing period to come up with an accurate result.