Renovating an existing home is not an easy task, especially if you have a house that requires considerable amount of rework. On the flipside, it's one of the most exciting things in life. Imagine, redoing an existing house, constructing additional floors or perhaps bringing it up to the latest trends and style. Small time renovation such as painting the house is something that can be managed easily without much expenditure.
On the other hand, works on a larger scale is something that may not be affordable outright and we don’t wish to drain out our savings into renovating the house. In such cases, a housing loan helps. Banks and financial institutions extend exclusive offers and schemes to people looking forward to renovating their homes. The monies disbursed under this scheme falls under the ambit of a housing loan and works just like you would avail a loan for purchase/construction of a house of condo unit.
Home Renovation Loan Offered By Banks in The Philippines
Nearly all banks that extend Home Loans in the country cover renovation as well. We’ve collated a list of top banks in the Philippines that extend financing for home renovation/improvement.
Bank of Philippine Islands(BPI)
One of the oldest banking institutions in the country, BPI offers quick and easy loans at low interest rates and flexible term options. Benefit from the vast branch network for all your loans requirements, be it loan application or loan servicing. The bank finances up to 80% of the renovation costs and a flexible loan repayment tenor of up to 25 years.
Owing to its fast processing timelines(Less than 5 days to scrutinize and approve the loan) and a slew of features and benefits, a loan from BPI to redo your home is something you must seriously consider.
Another bank in this segment that offers competitive rates and unparalleled customer service. Known for its quick disbursals, financial support is offered for people looking to expand, renovate or reconstruct an existing house. Eastwest finances up to 80% of the project costs at interest rates starting at just 6.00% per annum.
The paperwork and documentation is simple, easy to understand and covers all possible home renovation aspects under the loan. From simple undertakings such as lawn improvement to complex ones like construction of an additional floor, you can trust Eastwest for easy financing solutions.
This 8th largest bank in Philippines by assets size Security Bank offers Home Loan to Filipinos for a plethora Housing requirements such as purchase, construction, refinance and for renovation purposes as well. One can use the loan amount to carry out a range of facelift and improvement works with the high loan amount.
With flexible repayment options and fast processing timelines and considerably high margin of finance, the interest rate per annum is one of the lowest at 5.25% per annum. For all those of you looking for a loan that comes at pleasing rates and benefits, this can be the ideal product for you.
Part of the SM Group, one of the country’s largest and multi-industry conglomerate BDO provides affordable home loans which also includes funding for renovation and home improvement. This all-inclusive loan covers all aspects of home renovation and provides financing at flexible terms and rates.
The annual interest rates starts at just 5.50 percent per annum with flexible loan repayment terms. You also benefit from the massive branch network of the of BDO spread across the length and breadth of the country for applying and servicing an existing loan.
Union Bank of the Philippines or Union bank as commercially known is a universal bank and offers home loans through its brand Future Homes at affordable rates and competitive benefits. With a rich history of over 50 years, Union Bank has helped realize the housing dreams of millions of Filipinos since inception.
This housing loan also covers home renovation and refurbishment costs with funding of up to 70 percent of the project costs. The rate of interest is quite economical at 5.50% per annum.
Pag-IBIG Housing Loans
Perhaps, the most popular loan in the public space, the Pag-IBIG is one of the most preferred housing loan instruments preferred by Filipinos. This loan covers expenses relating to renovation, alteration, construction of an existing home.
Available to members of the fund, this popular loan comes with a slew of benefits and features with interest rate starting at 6.50 percent for a term of 3 years.
We understand that renovating home can be as exciting as buying one. This can be a comprehensive task if you’re undertaking a large scale makeover such as building an additional floor, redoing the interiors, furnishing etc. Since this is not a common affair, we must leave no stones unturned right from ensuring a detailed blueprint to estimating the costs of the work to be carried out. Here are some tips that can help you make it a grand success.
- Hold a brainstorming session with family members and chalk out a detailed plan. Some renovation work come with associated tasks. For example, if you’re constructing an additional floor, you must consider painting the entire house to synchronize.
- The next task would be to speak to experts such as Interior designers, contractors, masons and work out a plan. Ascertain the financials and materials required to carry out the improvement work.
- Next in line would be to have a detailed plan on how you would like to fund the expenses involved. Do not drain entire savings into this plan, instead look at other options such as Housing or a Personal Loan to complete the funding.
- If you’ve decided to take the loan route, compare loan products from various banks along with its rates and fees. bankbazaar.ph can help you in this regard as we maintain up to date details on product features and rates.
- Once you’ve zeroed on the product(s) you would like apply for, speak to the bank to understand the requirements and to negotiate rates.
- Once you’ve the loan amount, pool it in a phased manner. Most importantly, your supervision is required throughout the course to make sure it comes out as planned.