Repricing shock

Repricing shock — the payment jump when a PH loan’s fixing period ends and the rate resets to prevailing market rates. Unlike the US 30-year fixed, PH mortgages fix for 1–5 years (Pag-IBIG offers longer menus at higher prices), so your true rate is the promo rate now plus an unknown later. A ₱3.2M loan at 7% (~₱24.8k/month) repriced to 10% becomes ~₱30.9k — a 25% jump with rent unchanged. The industry’s named killer of leveraged PH portfolios; the stress test exists because of it.

First used in: 3.1 · Leverage: the sword’s both edges