• Compare Housing Loan Rates in the Philippines

    It is every person's dream to buy a home of their preference. You will have to work hard towards realizing this dream of yours. Not everyone is financially capable of paying for their home upfront, which is why they look for home financing options. A housing loan is offered to those who wish to buy or construct a house. The Filipinos can realise the dream of owning their home by taking a housing loan. When taking a home loan you must look at how much you can afford.

    Housing Loan Interest Rates

    Bank Name

    Loan Name

    Interest Rates

    Tenure

    Asia United Bank Housing Loan

    Contact Nearest Branch

    Upto 20 years

    Bank of Commerce Housing Loan

    Contact Nearest Branch

    10 years -20 years

    BDO Housing Loan

    5.5% -11.50%

    1 year- 20 years

    BPI Housing Loan

    5.25% - 11.50%

    1 year- 20 years

    China Bank Housing Loan

    Contact Nearest Branch

    1 year- 25 years

    China Bank Savings Housing Loan

    7.5% - 11.5%

    1 year- 25 years

    CTBC Bank Housing Loan

    Contact Nearest Branch

    Upto 20 years

    East West Bank Housing Loan

    5.5% -11.0%

    1 year- 30 years

    Equicom Savings Bank Housing Loan

    Contact Nearest Branch

    Upto 25 years

    HSBC Housing Loan

    Contact Nearest Branch

    NA

    Land Bank Housing Loan

    Contact Nearest Branch

    Upto 20 years

    MayBank Housing Loan

    6.00% - 7.50%

    Upto 20 Years

    MetroBank Housing Loan

    5.5% -10.50%

    1 Year - 15 Year

    PBCOM Housing Loan

    Contact Nearest Branch

    Upto 20 years

    PNB Housing Loan

    5.75% - 10.75%

    1 Year - 20 Year

    RCBC Housing Loan

    Contact Nearest Branch

    NA

    Robinsons Bank Housing Loan

    Contact Nearest Branch

    NA

    Security Bank Housing Loan

    5.25% - 9.00%

    1 Year - 15 Year

    Sterling Bank of Asia Housing Loan

    Contact Nearest Branch

    1 year- 20 years

    UCPB Housing Loan

    Contact Nearest Branch

    Upto 20 years

    Veterans Bank Housing Loan

    NA

    Upto 20 years

    Types of Housing Loan

    There are various types of housing loans offered in the Philippines. You get the conventional housing loans where you are required to pay back the amount that you have borrowed with an interest within a particular loan term. You can choose between variable and fixed interest rates. Flexible housing loans provide flexible repayment schemes. The flexible housing loans are usually linked to your current account so that you do not miss any payment. The amount gets deducted automatically from the linked account. Following are the different types of housing loans offered in the Philippines:

    1. Bank Housing Loans

      The housing loans are offered by commercial banks. The interest rates offered are low and the terms are flexible. The banks will have certain common qualification requirements, but they will have some distinctions with regard to the terms, requirements, interest rates, etc. The commercial banks will have stricter qualifications. If you are planning on getting a bank housing loan, it is important that you get prequalified for it. The sure way to get an approval is to have a good credit history. The first thing you need to do is check your credit report and see if it needs fixing. Do not apply for a housing loan unless you have fixed your credit score and credit history.

      Commercial banks offer housing loan for up to 25 years. The interest rates offered will vary from bank to bank and it can range between 4.99% and 7.75%. The maximum loan amount offered can depends on the collateral offered. The loan to collateral ratio can go up to 80%. You will be charged handling fees, property appraisal fees, and registration fees which can amount to P7,000.

    2. In-House Financing Schemes

      Most buyers prefer to pay for their property in instalments and the developers offer financing schemes which are tailor-fit to needs of the buyers. The advantage of taking a housing scheme from the developers is that they are lenient and the application processes do not take too much time. There is not much paperwork involved and you are paying for the property in staggered payments. The drawback of this type of housing loan is that the interest rates are higher and the tenures are short. The interest rates can go up to 18%. If you are opting for this type of loan, you must plan your finances properly as you will be paying a higher instalment each month. You must ensure that you are having enough money to sustain after paying your instalment. You will have to pay a 10-30% down payment on the total price of the property.

      The easiest way to get loan under this scheme is to apply for it during the pre-selling stage. The real estate developers provide a significant discount at this stage. But, it also means that you have to wait till the property is ready so you can occupy it.

    3. Social Security System

      Social Security System is a state-run social insurance program offered to non-government employees. Housing loans are offered to Overseas Filipino Workers. The goal of this type of housing loan is to provide the OFWs with means to purchase a low-costing house. This program offers loans that can be used for construction of a house. The loan tenure offered can be up to 30 years. The interest rate ranges between 7.5% and 11%. The maximum loan amount offered under this type of loan is P2 million.

    4. Pag-IBIG:

      Pag-IBIG fund is a government's provident fund program that helps employed Filipinos purchase their home. The loans from Pag-IBIG can be used for repairs, reconstruction, or to purchase a pre-owned house. The maximum loan amount available is P6 million. The maximum loan amount depends on your needs and capacity to repay. The interest rate is based on the amount loaned and it will not exceed 11% p.a.

      Loans are also offered for affordable housing. Affordable houses do not cost more than P750,000. This loan is available to the members whose monthly income is not more than P17,500 for those working in Metro Manila and P14,000 for those working in other regions. The maximum loan tenure offered under this type of loan is 20 years. The interest rate ranges between 6.5% and 11%. The loan amount is based on the applicant's monthly contribution and it is usually 80% of the property's selling price.

    Other Things to Know in Housing Loan

    Mortgage Loans

    Mortgage loans are secured by property as collateral. The collateral provides the guarantee the lenders need in the event the payment is not done. Mortgage loans are easier to procure as they offer a collateral. You can get fixed rate mortgages, adjustable rate mortgage, interest only loans and loans provided by the government and controlled corporations. Mortgage loans are ideal for those who want to buy a home but do not have the finances. It is a form of a secured loan and therefore, the interest rates are lower. You must have a good credit rating to secure a mortgage loan.

    Housing Loan Refinancing

    Loan refinancing is when you take a loan to repay another debt. Refinancing should be opted to obtain a loan at a better interest rate and terms. This is a good option for those who have a good credit score. Refinancing helps you to obtain huge finances. Only choose to obtain home loan refinancing when you are not able to find the finances in any other way.

    Home Equity Loans

    Home equity line of credit is a loan provided by the banks where the home acts as a collateral. You can use the home equity loan to pay for your tuitions, medical expenses, go on a vacation, buy a car, plan a wedding, or to expand your business. You will have to repay the amount in short period of time. The collateral accepted for a home equity loan is a condominium, a lot, and a home & lot. The maximum tenure that one can repay the loan is 15 years.

    Home Renovation Loans

    When a house require a considerable amount of rework, it is not easy to fund for the renovation. Banks and financial institutions offers schemes to those who want to renovate their homes. The interest rates offered are low and up to 80% of the renovation costs are covered. The repayment tenure offered is up to 25 years.

    Factors You Need to be Aware of When You Choose a Housing Loan

    When you are choosing a home loan, you must take into consideration the following factors:

    • Finance Margin:
    • The margin of financing is also called as loan-to-value ratio. Most banks in the Philippines base the amount that is lent on age and income of the applicant, property type and location, and the current market value of the property. Typically banks offer finance up to 80% of the property value. If you are planning on purchasing a property worth P1 million in Manila, you will be eligible for a loan of P800,000. The rest will have to be paid as a down payment. You must have the finances to make the down payment. Choose a loan that doesn’t require you to make a huge down payment.

    • Fees and Charges:
    • The fees and charges will differ from bank to bank. The common fees that would be charged are registration expenses, appraisal fee, mortgage redemption insurance, documentary stamp tax, and handling & notarial fees. When you are choosing a home loan, you must compare the various fees charged by the banks and choose the one that charges lower fees.

    • Early Termination Fees:
    • Most lenders apply an early termination fee if the loan is paid in part or full before tenure ends. The early termination fee is even charged if you are getting the loan refinanced with another lender. The time period within which you will be accountable to pay this fee is called lock-in period. The charge can be very high depending on the amount of loan.

    How to Choose the Best Housing Loan

    Purchasing a house is a big commitment as the repayment goes on for a long period. You must choose the right housing loan so that you are not financially burdened. You must take into consideration the following while choosing a housing loan:

    • You must know your financial capacity:
    • You must know how much loan you are capable of taking for your house. You can determine this by evaluating your income, credit history, and debt-to-income ratio. Your income determines your capacity to repay the loan, the credit history show how you manage your finances, and the debt-to income ratio helps proportion how much amount your take home every month. Your debt-to-income ratio should not be more than 30% of your income.

    • You must determine how much amount you want to borrow:
    • The loan amount is determined by the property’s appraised value. The banks may lend you a minimum of P400,000 and up to 80% of the property’s selling price. The thing to remember here is that you must borrow an amount that you can pay back conveniently and without having to face foreclosure and lose your other investments.

    • You must compare the housing options available:
    • Once you know how much loan you can afford, you must evaluate the various financing schemes. You will find 4 types of housing schemes in the Philippines. You must compare the terms, monthly repayments, interest rates, and other charges and choose the one that best suits your needs.

    Choosing a best housing loan can be a difficult and tiresome task, but it is best to get all your doubts eliminated by learning more about the schemes. You will be able to take a better decision when you are well-informed.

    Leading Bank Offering Housing Loan in Philippines

    Following are the leading banks that offer housing loans in the Philippines:

    1. BDO Housing Loan: You can take a home loan from BDO to either purchase or construct a new house, renovate your home, or to invest in a property. The maximum loan amount offered is up to 80% of the appraised property value. The minimum loan amount offered is P500,000. Low interest rates are offered and the repayment tenure is up to 20 years. The processing is done within 5 days upon submission of the documents. Additional loan can be taken to pay taxes, insurance premium, and mortgage registration fee. You can earn rewards points on your home loan account. The minimum gross income required is P50,000 per month. BDO home loan can be availed by a Filipino citizen or a foreigner.
    2. UCPB Housing Loan: UCPB offers HomEasy loan which has a flexible loan term and competitive interest rates. You can use the loan to purchase a house and lot, residential lot, townhouse, or condominium. You can also use the loan to construct on your already owned lot or to renovate. The loan can also be taken to refinance the existing mortgage from another bank. You can get a UCPB Home loan if you have a monthly income of P30,000 and if you are employed for at least a year. If you are self-employed, you must have been in business for the last 3 years.
    3. The minimum loan amount you can get is P500,000 and the maximum loan amount you can get is 70% of the appraised property value of condominium units, houses and lots, and townhouses. The maximum amount you can get for a vacant lot is 60% of the appraised value and it is 80% of the contract price for accredited developers.

      The loan is offered for 20 years and if it is refinancing or acquisition of vacant lots, it is 10 years. The down payment is determined by the loan term. UCPB also offer home loan if you are an Overseas Filipino Worker.

    4. Metrobank Housing Loan: Metrobank offers home loan if you want to buy a new home, pre-owned home, foreclosed home, or a second home. It can be taken for construction or renovation. You can also transfer the home loan from another bank.
    5. You will get up to 90% of the appraised value as loan if you are buying a new home. The tenure offered is up to 25 years. If you are buying a pre-owned home, the maximum loan amount you will get is up to 80% of the appraised value of the property.

      You can get a home loan for construction where the loan amount is disbursed in tranches based on the percentage of completion. The funds are distributed in the following manner:

      • 1st release includes 50% of the approved loan amount.
      • 2nd release is given when 30% of the construction is completed.
      • 3rd release is given when 60% of the construction is completed.
      • 4th release is given when 90% of the construction is completed.
      • 5th release is given when 100% of the construction is completed.

      You can also use the home as a collateral when you need extra money. You can get up to P15 million for 10 years.

    6. LandBank Housing Loan: LandBank offers three types of home loans. They are Easy home loan, End-buyers tie-up, and Bahay Para sa Bagong Bayani. Easy home loan helps you construct or buy a new home. Existing homeowners can also refinance their current home loan from another bank or developer’s in-house financing. The minimum loan amount offered is P500,000. The tenure offered is 20 years.
    7. End-buyers tie-up agreement will help you construct or buy a home through an accredited developer. This helps developers grow their business. The maximum loan amount offered is 90% of the contract price. The maximum tenure offered is 20 eyars and the maximum tenure for Socialized housing is 30 years.

      Bahay Para sa Bagong Bayani is a special lending program that is designed for OFWs. Overseas Filipino Workers can build, acquire, or renovate their home at flexible terms. This loan is offered to Filipino citizens only. The maximum loan amount offered is 80% of the property value. The tenure offered with a co-borrower is 20 years and without a co-borrower is 15 years.

    8. Security Bank Housing Loan: The interest rate on home loans with Security Bank starts at 5.25%. You get loan amount up to 80% of the property value. The home loan approval is done in 5 days. The loan is offered for up to 20 years. You must have a minimum monthly income of P50,000. The minimum loan amount offered is P1 million. You can take a Security Bank home loan to buy a home, construct, renovate, or refinance an existing loan. You can also unlock the value of the property by using it as a security.
    9. You have the option of paying on your own terms, you can pay extra when you have extra money and pay less when you are on a tight budget. You can also make regular payments towards principal and interest.

    10. PNB Housing Loan: PNB offers home loan for first-time buyers who are looking to invest in real estate. You get higher loan amounts and the interest rates offered are low. The home loan can be taken to purchase a house & lot, townhouse, lot, or a condominium unit. You can also take a home loan for home improvement, home construction, and refinancing. The loan is offered for a tenure of up to 10 years for home improvement or lot purchase. The tenure for purchase of house & lot, condominium unit, townhouse, and house construction is up to 20 years. The maximum loanable amount is 80% of the appraised value of the property. It is 60% of the appraised value of the property for lot. The minimum amount loaned is P500,000 within Metro Manila and P200,000 outside Metro Manila. A non-refundable appraisal fee of P3,500 is charged.
    11. China Bank Housing Loan: China Bank offers HomePlus loans to buy or build the home of your dreams. The loan amount are higher. The repayment tenures offered are up to 25 years. The interest rates are lower. You can take a home loan to buy a house & lot, vacant lots, or condominium lots. You can also take the home loan to renovate your home, reimburse for purchase or construction of residential property, and to refinance existing home loan.
    12. EastWest Bank Housing Loan: EastWest Bank offers flexible home loan terms. The loan is offered for up to 30 years. You can take a home loan for home construction, reimbursement, buy a townhouse, condominium, or a residential apartment, and to acquire a residential lot. EastWest Bank offer home loan to OFWs as well.

    Housing Loan Eligibility

    You must meet the following eligibility requirements to avail various types of housing loans:

    • Bank housing loans:
    • You must meet the following requirements to avail bank housing loans:

      • You must be at least 21 years old.
      • You must not be older than 65 years upon loan’s maturity.
      • You must be a Filipino citizen or must have a permanent Philippines visa.
      • You must be employed and must earn at least P30,000.
      • You must be a regular employee of a company for at least 2 years.
      • If you are self-employed, you must be in business for at least 2 years.
    • In-housing financing schemes:
    • You must meet the following requirements to avail loans under in-housing financing schemes:

      • Certificate of employment.
      • Source of income.
    • Social Security System:
    • You must meet the following requirements to avail SSS loans:

      • You must be a member of SSS and must not be more than 60 years at the time of applying for the loan.
      • You should’ve made 36 non-consecutive or 24 consecutive monthly contribution.
      • You must not have been granted any housing loans by SSS previously.
      • You must be up to date with all contributions.
    • Pag-IBIG:
    • You must meet the following requirements to avail Pag-IBIG loans:

      • You must be a member of Pag-IBIG for at least 2 years.
      • You must not be more than 60 years old when you are applying for the loan.
      • You must not be more than 70 years old at the time of loan maturity.
      • You must legally acquire the property.
      • You must not have outstanding housing loan or and Pag-IBIG loan that has been foreclosed.

    Documentation Required to Apply for a Housing Loan

    You must submit the following documents:

    • Bank housing loans:
    • You must submit the following documents to avail bank housing loans:

      • ITR
      • Valid government issued ID
      • COE
      • Transfer Certificate of Title
      • House plans/ bill of materials
      • Tax declaration
      • Marriage contract
      • OFWs should submit proof of remittance for 2 months
      • Business owners must submit Certificate of business registration
    • In-housing financing schemes:
    • You must submit the following documents to avail in-housing financing scheme:

      • Income tax return
      • Proof of income
      • Marriage contract
      • Certificate of employment
      • Remittance slip for OFWs
      • Bank statement
    • Social Security System:
    • You must submit the following documents to avail SSS loans:

      • Certificate of employment
      • Tax declaration
      • Latest ITR
      • TCT or CCT of the property
    • Pag-IBIG:
    • You must submit the following documents to avail Pag-IBIG loans:

      • Membership status verification slip
      • Marriage contract
      • Birth certificate
      • Income tax return
      • Proof of billing address
      • Special power of attorney
      • OFWs should submit a photocopy of the visa
      • Job contract
      • Notarized COE
      • Government employees must submit their one month payslip
      • Completed Pag-IBIG housing loan application with recent ID photos

    Housing Loan for OFW

    OFW or Overseas Filipino Workers are those who are working abroad to create a better life for themselves and their families. When one puts their money in investments, they can increase the value of their income. One of the investments that will help increase the value of income is by buying a home or a condo unit that can be rented out.

    Overseas Filipino Workers can get a Pag-IBIG loan to buy a home. OFWs will be eligible for this loan if they have made Pag-IBIG contributions for 24 months and they should be currently employed. Pag-IBIG will do a background credit check to see if you have had any previous bad loans. You are required to show proof of employment.

    OFWs can borrow a maximum of P6 million, the actual amount that can be borrowed will be based on their need and capacity to repay. The monthly payments should not exceed more than 30% of the income and they must be less than 65 years old by the time they finish paying the loan.

    Pag-IBIG loan can be used to buy a developed lot, condominium, or a lot that needs construction. The property can be new or pre-owned. OFWs should go to Pag-IBIG office where they will have to attend loan counselling with the Pag-IBIG information officer.

    If the loan has been approved, OFWs will receive a Notice of Loan approval or Letter of Guaranty. The documents of the property seller will have to be submitted along with Capital Gains Tax at the Bureau of Internal Revenue.

    Housing loan FAQs

    1. What are the various types of home loans offered in the Philippines?
    2. You can get conventional and flexible home loans. Home loans can be taken to purchase a new home, construct a home, or to renovate a home.

    3. What are the factors that I must consider while taking a home loan?
    4. You must take into consideration the finance margin, fees and charges, and early termination fees.

    5. What factors determine the loan amount that I can avail?
    6. If you are taking a home loan, the lender will take into consideration your age, monthly income, type of property you wish to purchase, location of the property, and the market value of the property.

    7. Can OFWs avail a home loan in the Philippines?
    8. Yes, OFWs can avail a home loan under Pag-IBIG in the Philippines provided they have made 24 contributions to Pag-IBIG and are currently employed.

    How can Bankbazaar.ph help you with housing loans?

    Bankbazaar.ph can help you find the best financial deals by the leading banks in the Philippines. It is a third party comparison website that gives unbiased information which works in the best interest of the customer. You can look at various parameters like interest rates, loan margin, and loan tenure offered by the various loan schemes of different banks.


    Housing Loans By Bank
    Renovation Loan by Banks
    Housing Loan Refinancing by Banks
    More read on Housing loan
    Housing Loan Related Articles
    Interest Rates
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