They say, ‘Home is where the heart is’, an axiom that defines the purpose and meaning of a homestead, a place to put down roots, raise a family and grow old. The system of home loans in the Philippines is designed to help Filipinos realise their dreams of owning their own home, with attractive features that make this commitment an ensuing pleasure, and something that is well within the reach of most people in the Philippines. After all, winning an important milestone such as the ownership of a home requires helping hands - those provided by a competent home loan, from an equally earnest Philippine bank.
Housing Loan Interest Rates - Philippines
|Bank Name||Loan Name||Interest Rate||Loan Amount||Loan Tenure|
|Asia United Bank Housing Loan||NA||P500,000.00 -80% of appraised value of property||Upto 20 years|
|Bank of Commerce Housing Loan||NA||P500,000.00 -80% of appraised value of property||10 years -20 years|
|BDO Housing Loan||5.50%||P500,000.00 -80% of appraised value of property||1 year- 20 years|
|BPI Housing Loan||5.5%||P400,000.00 -70% of appraised value of property||1 year- 25 years|
|China Bank Housing Loan||NA||P500,000-P25,000,000||1 year- 25 years|
|China Bank Savings Housing Loan||NA||P400,000-P25,000,000||NA|
|CTBC Bank Housing Loan||NA||P500,000-P25,000,000||Upto 20 years|
|East West Bank Housing Loan||6.00%||P500,000.00 -80% of appraised value of property||1 year- 30 years|
|Equicom Savings Bank Housing Loan||NA||P300,000.00 -60% of appraised value of property||Upto 25 years|
|HSBC Housing Loan||4.99%||P700,000-P50,000,000||NA|
|Land Bank Housing Loan||NA||70% of appraised value for loans of P3.5 M and <60% for loans above P3.5 M||Upto 20 years|
|MayBank Housing Loan||6.00%||P500,000.00 -80% of appraised value of property||Upto 15 years|
|MetroBank Housing Loan||5.50%||80% of appraised value of property||Upto 25 Years|
|PBCOM Housing Loan||NA||P500,000.00 -80% of appraised value of property||Upto 20 years|
|PNB Housing Loan||5.75%||80% of appraised value of property||Upto 10 years|
|RCBC Housing Loan||NA||P300,000.00 -80% of appraised value of property||NA|
|Robinsons Bank Housing Loan||NA||Upto 80% of appraised value of property||Upto 15 years|
|Security Bank Housing Loan||5.25%||P1,000,000 -80% of appraised value of property||Upto 20 years|
|Sterling Bank of Asia Housing Loan||NA||P500,000.00 - upto P10M 80% of appraised value of property||1 year- 20 years|
|UCPB Housing Loan||NA||P500,000.00 -80% of appraised value of property||Upto 20 years|
|Veterans Bank Housing Loan||NA||P375,000.00 -80% of appraised value of property||Upto 20 years|
As the name suggests, a home loan is basically an influx of funds that the bank loans you in order to buy a new home, condominium, land, construct a new home or renovate an existing one. Based on inherent factors, home loans in the Philippines can be classified into two types-
Conventional Housing Loan:
The popular home loan option, this allows you to make fixed monthly payments for a certain duration of time or term. Generally, conventional home loans amount to a maximum of PHP 500,000, with tenures ranging up to 20 years.
Flexi Housing Loan:
A specialist home loan variety, these are connected to your current account. The perks associated with this loan include the possibility of decreasing the applicable interest rate, withdrawal of excess payments made into the current account and choice to start principal repayment at any chosen time.
The various factors that play a part to determine the loan amount applicable to you include- your age, monthly gross income, the type of property that you propose to purchase, the location of the said property and its current market value.
Perhaps, the most popular and sought after loan instrument in the country, the Pag-IBIG Housing Loan by HDMF (Home Development Mutual Fund) has been fulfilling the housing dreams of millions of Filipinos since its inception in 1978. Managed by the Government of Philippines, this option is open for both workers from the public as well as the private sector and offers affordable and rates and terms.
- Purchasing a lot, condo unit or a townhouse. New and old properties are both covered under this scheme.
- For completion or construction of a house on a lot. Related costs are covered.
- For procuring a fully developed lot in a residential locality whose area does not exceed 1K square meters.
- Home improvement undertakings such as making enhancements to an existing property like building an additional floor and other allied tasks.
- Mortgage refinancing from an institution listed under the fund rules.
To be eligible for a housing loan under this scheme, the member should have paid into the fund for at least 2 years. Apart from resident Filipinos, this scheme is also open for OFWs (Overseas Filipino Workers). It comes with flexible term options that can go up to 30 years, provided for repayment of the loan amount on amortization basis. If you’re looking for an affordable housing loan deal that comes with trust, this is ideal option for you.
When and Why to take Housing Loans?
If the desire of buying your dream home has been on your mind since a long time, but you have been postponing it since a long time due to lack of adequate funds, the it is time for you to take a comprehensive housing loan. Choose a housing loan which is available at an affordable rate of interest and gives you a comfortable repayment tenure. This will provide adequate financial funds for you to acquire a house. There are banks which offer flexibility in terms of the repayment amount as well; availing for a housing loan from such a bank is a very wise option.
Leading Banks Offering Housing Loan in Philippines
One of the leading banks in Philippines, they offer various housing loan options with flexible schemes. You can avail BDO housing loans for purchasing a new house, constructing one or renovating the present house. Enjoy low interest rates and high loan quantum. The flexible repayment terms, fast processing time and rewards earned (via the BDO rewards program) are the some of the unique benefits offered on the home loan schemes by BDO.
BPI offers tailor-made housing loan options especially designed to suit the varied needs of the wide customer base. Loans are available for purchasing a new house, constructing one from the scratch or renovating an existing house. The comprehensive housing loans plan are extremely affordable and easy to apply.
Be it constructing a house from scratch, buying a new house or renovating your old house, Metrobank provides financing solutions for all of these by offering housing loans. A comprehensive structure, affordable interest rates, easy repayment options make this a very lucrative option amongst customers. In addition to these, Metrobank is very popular for its impeccable service and quick loan disbursal.
Eligibility and Requirements for Housing Loan
- 1. Duly filled housing loan application form
- 2. Photocopy of ID such as driver's license, passport, SSS ID, Postal ID, PRC ID etc
- 3. Copy of latest income Tax Return
- 4. Copy of Building plan
- 5. Documentation for salaried applicants:
- Original copy of Certificate of Employment
- Photocopy of last full month pay slip
- 6. Documentation for self Employed applicants:
- Photocopy of DTI registration or SEC
- Copy of Audited Financial Statements of the past year
*The above mentioned documentation are subjected to change bank wise
How to calculate repayment amount – Home Loan EMI calculators
A Housing Loan Calculator is a dynamic tool, on every banks’ website, which enlightens the borrower about the financial aspects and costs involved, when availing a housing loan. This helps the borrower in taking key decisions like deciding the loan tenure, planning his/her monthly budget depending on the EMIs to be paid, and such like. With the help of a Housing Loan Calculator, a borrower can end up getting the best possible deal while availing the loan.
A few basic details like loan tenure, loan amount and interest rates need to be entered in the calculator. Immediately after this, you get to the amount you need to pay every month as easy installments and interest.
How BankBazaar.ph helps you to pick the right housing loan
BankBazaar.ph is a third party comparison website for helping customers find the best loan/financial deals provided by the leading banks in Philippines. This website has a very unique model as it gives credible, neutral, and unbiased information, which works in the best interest of the customers. This prevents you from making a lopsided judgement. With the help of Bankbazaar.ph you can have a look at various parameters, crucial for a housing loan, like interest rates, loan tenure, loan margin, etc. as offered by the loan schemes of different banks. This helps you in selecting the deal which suits your requirements perfectly.
FAQs for Housing Loans
- What are the categories of housing loans that the leading banks in Philippines offer?
The leading banks in Philippines offer housing loans for purchasing a new house, constructing one or renovating the present house. For the convenience of customers these loans come with affordable interest rates, flexible repayment options (offered by some banks), and are disbursed quickly with hassle-free documentation process.
- I want to avail a housing loan in Philippines. Which bank should I consider for taking a loan if I want flexible repayment terms and affordable rates of interest?
The best option for you is to avail a housing loan from BDO. The bank offers flexible repayment terms for the convenience of customers. High loan quantum and low interest rates are also some lucrative features of the loan. With the BDO rewards program, you can enjoy some attractive benefits and rewards on availing a housing loan offered by the bank.
- Is a Home Loan Calculator useful? If yes, then how can I make use of it?
Yes, a housing Loan Calculator is a very useful and unique tool provided by the banks on their website. Every borrower who is intending to take a home loan must make use of this tool. You have to put some basic details like loan tenure, loan amount and interest rates in the calculator, and the results will show you the possible EMI that you will have to pay every month for availing the loan. This will help you in financial planning and chalking out your monthly budget.
- What are the factors that determine the housing loan amount that a borrower can avail?
The various factors that play a part to determine the loan amount applicable to a borrower is his age, monthly gross income, the type of property that he/she proposes to purchase, the location of the said property and current market value/price of that property.
- What is Home Equity Loan
- Low Interest Housing Loans Truth
- SSS Housing Loan
- Refinancing Housing Loan
- Home Loan Renovation
- Mortgage Redemption Insurance
- Common Mortgage Loan Mistakes
- Customized Housing Loan
- Property Buying Guide for OFW's & Expats
- How to get Pag-IBIG Housing Loan for OFWs?
- What is Maceda Law?
News About Housing Loan
Shift in Focus in the Residential Property Sector in Philippines
The results of a survey conducted by BSP (Bangko Sentral ng Pilipinas) has indicated that real estate lending in the country has tightened to an extent for both, individual borrowers as well as commercial developers in the 2nd quarter. The results indicate that there is a shift in the middle income as well as rental housing due to the signs suggesting that tightening of credit in the real estate sector demands more focus in the lower cost development.
31st July 2016
Real Estate Loans touched P1.33 Trillion by March End
According to recent data released by Bangko Sentral ng Pilipinas (BSP), real estate loans have increased to P1.33 trillion by end of first quarter of 2016. The amount banks and their trust departments lent have increased by 1.8% compared to the previous quarter. As per the data, residential real estate loans totalled to P462.4 billion and commercial properties loan totalled to P869 billion. The non-performing property loan totalled to P28.4 billion, which was more than last quarter’s total. BSP recently launched RREPI that showed that real estate property prices increased by 9.2% in the initial 3 months of 2016. It also showed that out of 10, 7 real estate loans were lent by banks for the purchase of new housing unit.
05th July 2016
No Asset Bubble in the Philippines
There is no asset bubble in the Philippines even after residential real estate prices increased by 9.2 percent in the 1st quarter as per the Governor of BSP, Amando Tetangco Jr. The BSP had released the RREPI (Residential Real Estate Price Index) recently. The Governor believes that there is no bubble at the moment but there is a need to monitor the sector, which the BSP can do with the help of RREPI. As per the index the prices of property in the NCR (National Capital Region) and nearby areas have increased by 9.7 and 9.4 percent. It also displayed that out of every 10 residential real estate loans, 7 had been given for the purpose of purchasing new housing units, the most common purchase being the Condo units. Among all the residential real estate loans that were given, NCR alone accounted for 50.4 percent.
08th June 2016
Residential Real Estate Price Indices are out
BSP (Bangko Sentral ng Pilipinas) has released the RREPI (Residential Real Estate Price Indices) and it is expected to serve as a measure to assess the trends in housing prices. On 16 November 2015, BSP had issued a circular (No.892) stating that the bank requires all universal, commercial banks and thrift banks in Philippines to submit a bank quarterly report on RRELs (Residential Real Estate Loans) that are granted for generating RREPI.
During the first quarter of 2016, 93 out of 109 banks (85.3%) have submitted their reports to BSP.
Results in a Nutshell:
• RREPI has increased by 9.2% in the first quarter of 2016 compared to the same period a year ago.
• Real property prices in NCR increased by 9.7%. Under NCR, condominium units were the most common house purchases.
• Real property prices in AONCR increased by 9.4%. Under AONCR, single detached houses were the most popular purchases.
• Condominium units showed the highest year-on-year growth in prices at 12.9%. Townhouses followed closely at 8.5%.
• Approximately 7 out of 10 approved residential real estate loans were for purchasing new housing units.
By region, NCR accounted for 50.4% of the residential real estate loans granted, Calabarzon accounted for 28.4%, Central Luzon accounted for 7.6%, Western Visayas accounted for 3.8% and Central Visayas accounted for 3.3% in Q1 of 2016.
07th June 2016
BSP to Release Residential Property Price Index Soon
Bangko Sentral ng Pilipinas (BSP) is going to release the residential property price index soon. This index will let authorities track property prices and monitor asset bubbles that can disturb the economy. BSP has been working on this price index since last year to monitor the prices of properties in the housing sector. It is also called the residential real estate price index or RREPI. It has been presented to the Monetary Board and is all set to be released next week. At present the property prices in the country is monitored by the central bank but it is not able to determine if a bubble is forming or not. This prevents the bank from taking any pre-emptive measures. Last year BSP had asked banks to submit reports on a quarterly basis about residential real estate loans. The loans booked by all the banks combined amounted to P 1.516 trillion, which is 24.1 percent more than 2014. While building the index, the central government considered a lot of factors such as real estate lending, approved permits for building, construction material cost and inputs from offices of housing regulatory, home developers and land registration.
01st June 2016
Housing Projects will receive P1 Billion
An amount of over P1 billion has been sanctioned for funding the housing projects by the national government. This measure has been taken for the ISF (Informal Settler Families) living in the danger prone areas of Metro Manila.
P1,165,085,751 has been released by DBM (Department of Budget and Management) for the SHFC (Social Housing Finance Corporation).
Out of the entire amount that has been released, Ciudad de Strike project will receive P544 million. SMP project will receive P271 million and MWAHC project will receive P350 million. The Department of Budget and Management stated that proposals met the technical requirements under the current set of rules and regulations. The 3 Informal Settlers Families beneficiary groups have been organized into different community associations. This is done so that they can participate in this program and also submit a proposal for their shelter and resettlement needs.
30th May 2016
Net Income of PNB Savings Bank Increases by 29 Percent in Q1
PNB Savings Bank (PNBSB) recorded a significant increase in its increase in the 1st quarter of this year. In fact, its net income increased by 29 percent in Q1 2016. The bank reported a net income of P91 million. In the same period last year, its net income was P70 million. The core business of the bank experienced sustained growth and its net income from interest rose by 46 percent year-on-year. These are few of the factors that enabled the strong performance of the bank in Q1. The asset quality of PNBSB also improved in Q1.
12th May 2016
Banks Real Estate Exposure Hits P1.5 trillion in 2015
The exposure of banks to real estate sector in Philippines had hit P1.5 trillion in 2015. The increase in real estate exposure (REE) happened due to increase in real estate loans. Real estate loans increased by 6 percent to P1.3 trillion and these loans were responsible for 86.2 percent REE. Bangko Sentral ng Pilipinas (BSP) said that the investments in real estate securities increased to P209.7 billion, which accounted for 13.8 percent real estate exposures. The BSP release a tool called Residential Real Estate Price Index (RREPI) to assess the real estate market trends and to monitor REEs of banks. The RREPI will be based on the applications for housing loan approved by banks.
10th May 2016
Banks in Philippines Tighten Credit Standards For Real Estate Firms
Banks in Philippines have tightened their credit standards for lending to real estate developers, as reported by the Bangko Sentral ng Pilipinas (BSP). However, the banks have eased their credit standards for offering home loans to individual customers. BSP conducted a survey in which 35 leading banks participated and it found that majority of the banks have tightened their guidelines for offering commercial real estate loans. In the next quarter, most of these banks expect a steady growth in the demand of loans in general and they also expect a rise in the demand for commercial real estate loans.
29th April 2016
Home Credit Group enters Cebu
One of the foremost consumer finance companies in Eastern and Central Europe, the Home Credit Group has started to provide affordable plans to Cebuanos through the HC Consumer Finance in the Philippines. One of their proposals is to provide economical installment options to people who are between the ages of 18 to 68 who wish to procure home appliances or smart phones on the spot.
After Manila, Cebu has been recognized as one of the priority areas for Home Credit Group due to its economy which has been bullish. Home Credit group has also partnered up with mobile gadget retailers in SM City Cebu and Ayala Center. Iloilo is another city that is being looked at as a potential market along with other important cities.
The aim of Home Credit Group, according to the president and chief executive officer of the country, David Minol, is to provide access to items such as home appliances and gadgets to Filipinos at affordable rates and tenures. Home Credit Group provides installment options to customers who do not hold a credit card to help in the purchase of furniture, electronic devices and home appliances. A maximum quantum of P50,000 is provided for a purchase with a tenure of six to 30 months. Rate of interest varies between 3 to 4 percent.
29th January 2016