• BDO Home Loan Refinancing

    BDO Refinancing Home Loan

    Belonging to the SM group of Companies, owned by Henry Sy, Banco de Oro, more commonly known as BDO is the largest bank in the Philippines. It is headquartered in Makati, Philippines and was established in 1968 as Acme Savings. It is a universal bank and as part of its portfolio offers various products and services regarding insurance, loans, credit cards and debit cards.

    One of the popular loans offered by Banco de Oro is the home refinancing loan. Before getting into the nitty-gritties of the loan, it is essential for customers to understand what exactly home refinancing loans are.

    What is loan refinancing?

    Refinancing is nothing but taking on a new loan in order to pay off the older mortgage. This is an option that most people avail as they believe it is more convenient. However, this is not the case at all times. Refinancing should be sought only if the interest rate of the new loan is lower and more favourable than the previous one. Also if the previous loan was of a variable loan rate and the new one offers a fixed rate then the refinancing should be opted for. Sometimes refinancing is also taken up so as to procure more cash against a line of equity.

    Although refinancing a home loan has its advantages, this option is advisable for those who have a good credit history and are able to repay their loans on time along with the required rate of interest. All terms and conditions must be understood before opting for this.

    Benefits and Features of the BDO Home Loan Refinancing

    • Through this loan, customers can also finance other needs as well. Numerous options are covered in this loan. Other than refinancing, customers can also utilize this loan to renovate or purchase another property.
    • Banco de Oro offers a high loan quantum to all customers. A minimum of P500,000 is the amount offered and a maximum of 80% of the value appraised of the property is offered.
    • The cherry on the cake is low rates if interest. This is perhaps the most important and deciding factor for customers while procuring a loan.
    • The loan repayment tenure is also quite flexible and affordable. Maximum tenure offered is 20 years and customers can also make their first loan repayment, 60 days post the loan release.
    • Nobody wants to go through the hassle of waiting in long lines and for indefinite periods to get their loan processed and approved. With Banco de Oro’s Home refinancing loan, customers can expect their processing time and approval to be completed with five days after submission of all completed documents.
    • Customers can avail the advantage of procuring a loan that is multi purpose in its use. This loan can also be utilized for insurance premiums, mortgage related expenses and so on.
    • Customers can earn Rewards points from BDO that can be exchanged for anything they wish to purchase at all SM Department Stores.
    • With more than 770 branches all around the world, customers can submit their application form anywhere or procure any information regarding the same.
    • For monthly amortization, customers can repay through an auto debit arrangement. For those customers who live or work abroad, they can avail the following repayment options -
      • BDO Remit
      • Fund transfer via Swift code

    Interest Rates charged

    Tenure Rate of Interest
    One year 5.50 percent per annum
    Two to Three years 6.50 percent per annum
    Four to Five years 6.88 percent per annum
    Six to Ten years 8.50 percent per annum
    Eleven to Fifteen years 11 percent per annum
    Sixteen to Twenty years 11.50 percent per annum

    Eligibility and Documentation required


    In order to be eligible to receive the home refinancing loan from Banco de Oro, customers must meet the following criteria -

    • Customer must be a citizen of the Philippines or a foreigner ( for this, see the requirements for Visa mentioned below).
    • Customer must be between the ages of 21 to 65 upon maturity of loan.
    • The minimum gross income of the family per month should be P50,000.
    • If the customer is salaried then he/she must be a part of the current company for a minimum of two years.
    • If customer is self employed, then the business must be in operation, profitably for a minimum of two consecutive years.


    Basic Documents

    • Completed and signed application form for the BDO Home Refinancing loan
    • If applicable, then a marriage contract is also required.
    • Copy of one valid ID that matches the credentials provided in the application form.
    • For foreigners, a photocopy of the Alien Employment Permit or Visa ID or ACR which is the Alien Certificate of Registration showing the status of Visa as a permanent immigrant.

    Income Document

    For those employed locally -

    • Most recent Income Tax Return or W2
    • Most recent payslips for the past three months or the Certificate of Employment with breakdown of the salary.

    If customer is employed abroad or Asenso Kabayan customers -

    • Last 3 months payslip or proof or remittance proof for the same period.
    • Employment Contract or COE (Certificate of Employment) authenticated by Consulate of Philippines.
    • For seamen, recentmost Crew Contract with history of employment/ POEA authenticated Exit Pass with Crew Contract.

    For customer who are self employed -

    • Registration Certificate issued by SEC or DTI, along with Articles of Incorporation or Partnership, whichever is relevant.
    • Most recent Audited Financial Statements for the previous two years with the latest ITR.
    • Last three months bank statement copies.
    • Trade references including a list of customers and suppliers or a list of affiliated clinics or hospitals for medical professionals.
    • For applicants with rental income, a copy of the lease and title should be provided.

    Type of Visa that is acceptable for foreigners-

    • Non-Quota or Quota Immigrant Visa
    • Alien spouse of a citizen of Philippines.
    • Filipinos (born in the Philippines) who are married to Alien
    • Returning Resident
    • Filipinos (born in the Philippines) who are naturalised in a foreign country

    Collateral Documents

    • Copies of CCT/TCT
    • Geodetic Engineer certified Vicinity Map with the Plan of the Lot
    • For condominiums, a copy of Master Deed of the Declaration of Restrictions has to be produced.

    Fees and Charges

    The most common loan related expenses that the customer will be encountering are -

    • Documentary Stamps on tax
    • Registration Expenses
    • Fire Tax
    • Mortgage Redemption Insurance
    • Handling and Notarial fees

    The above are to be settled by the customer before release of the loan.

    Other fees include -

    Upon Application of loan
    Appraisal fee Metro Manila - P3500
    Outside Metro Manila - P4000
    Before release of the loan
    Handling fee P5000
    Notarial fee P500
    Registration fee Based on the loan quantum
    Documentary Stamps Tax P1 is charged for every P200 of the loan amount
    Mortgage Redemption Insurance P4.75 is charged for every P1000 of the amount of loan
    Fire Insurance Premium This is based on the appraised value of improvement


    Refinancing is an options that most procure so as to pay off an older loan but at lower rates of interest and additional benefits. There are a number of advantages and disadvantages to this. BDO offers one of the best refinancing loans in the market at competitive interest rates and a flexible and convenient tenure. Terms and other fees and charges are also not very heavy on the pocket. Customers can procure this loan quite easily without additional hassles and delays.

    Other Products from BDO

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