Fixing period

Fixing period — the window during which a PH mortgage rate is locked: typically 1–5 years at banks, up to 30 on Pag-IBIG’s menu, after which the loan reprices to prevailing rates. The menu prices who holds the risk: 1-year fixings are cheapest because you re-roll the dice annually; long fixings cost more because the lender holds them. Neither is wrong — but a cheap short fixing chosen without a +3% stress test is how PH buyers manufacture their own repricing shock.

First used in: 3.3 · Loans head-to-head