8 Best Bank Housing Loan in the Philippines

Investing in a house and lot for the first time is a milestone in anyone’s life. It is an important purchase that needs thorough financial planning. When not carefully planned, some people may spend their whole lives saving up for their dream home without turning it into reality. 

The process starts with having the capital, which is why getting a housing loan is the first order of business for many home or property buyers.

How do housing loans work?

Home loans are highly useful to individuals looking for a residential property or a property for investment purposes and can be used to finance a borrowers' mortgage or home purchase expenses. Because a property is a valuable item, it can be considered a collateral. The rates on mortgages usually fall. The borrower or the lender receives a fixed interest rate. 

Getting a housing loan helps buyers finance their dream homes by offering a greater variety of payment options. The lenders retain the property rights over the terms of their mortgage.

In the Philippines, the top-of-mind option for a home loan is the PAG-IBIG Housing Loan. After the government approved a total of PHP 63.75 billion housing loans in 2020, PAG-IBIG has become the popular housing loan option in the Philippines for Filipinos looking to secure their first residential property.

However, choosing other financial institutions like banks to get a housing loan can also prove to be advantageous. Banks can offer the best housing loan option too with some offering an even lower interest rate than PAG-IBIG.

​Banks can provide competitive rates and even more flexible terms that would better suit your budget. The Bangko Sentral ng Pilipinas (BSP), in fact, has hundreds of banks registered for more housing loan choices.

Choosing the right bank housing loan that offers the best housing loan terms can be tricky if you don't to your homework. To ease your burden, we've examined the best housing loan options from different banks in the Philippines. Check out this list below.


1. Security Bank Home Loan

Home Loan Features

• Minimum loan amount: Php 1,000,000
• Maximum loan amount: As much as 80% of the property's appraised value
• Interest rate:

           - as low as 8.00% fixed for one year
           - as low as 8.25% fixed for three years
           - as low as 8.75% fixed for five years

• Maximum Loan term: 20 years
• Other Important Housing Loan Features: Quick approval time for as fast as five banking days. It can be used for the purchase of a house and lot, vacant lot, or condominium unit. It can be utilized as a loan for new construction, remodeling, or refinancing an existing property.

Security Bank Home Loan Eligibility

• At the time of loan repayment, you must be at least 21 years old but not older than 65.
• An average of PHP 50,000 combined monthly income
• At least two years of steady work
• Three years of genuine and lucrative business operation for the self-employed is required.

Requirements to get the Security Bank Housing Loan

• Accomplished application form of Security Bank housing loan
• Valid ID with picture (if with spouse or co-borrower, must also provide the same)
• Employed applicants must present any of the following income documents:

           - Certificate of Employment and Compensation
           - ITR
           - Payslips for the last three months
           - Bank statements for the last three months

• For self-employed applicants:

           - ITR
           - One or more of the following revenue documents: A year's worth of audited financial documents, bank statements from the latest three months, or rental agreements

• Mortgage Redemption Insurance (MRI) application form
• Special Power of Attorney (for OFWs only)

2. China Bank Homeplus Loan

Home Loan Features

• Minimum loan amount: PHP 500,000
• Home loan interest rates: 5.75%
• Maximum loan term:
  1. Max of 10 years for condominium units
  2. Max of 15 years for vacant lots
• Max of 25 years for a house and lot
• Other Important Housing Loan Features: Quick processing. Can be used to acquire a variety of various types of real estate, including condominiums, house and lot packages, and land. For refinancing, home building, and reimbursement. Affordability of coverage since it uses its subsidiary, China Bank Insurance Brokers, Inc. Repayment is simple with an agreement for automatic debit arrangement. No hidden charges

China bank HomePlus Loan Eligibility

• Filipinos of legal age who will not be older than 65 at the time of the loan's maturity.
• Have a legitimate and profitable business or source of income.
• Three years or more in a management role in a well-known firm
• There is a minimum gross monthly income requirement for Manila and Metro Cebu of PHP 50,000 or PHP 35,000 if you live beyond these areas or other provinces.
• Don't have any negative records or credit findings, such as court cases, bouncing checks, canceled credit cards, and defaulted debts.

Requirements for the Bank Home Loan

• Accomplished Application Form for China Bank HomePlus Loan
• Valid IDs (TIN, passport, Community Tax Certificate, driver's license, or company ID)
• Resume
• Marriage contract (if married)
• Statements of Accounts for the last six months of deposit
• For employed applicants:

           - ITR
           - Certificate of Employment (COE) stating the length of service and monthly compensation package

• For self-employed individuals:

           - Audited financial statements and ITR for the last three years (BIR-stamped)
           - Business profile
           - Certificate of Registration of Business Name
           - Complete list of suppliers and client

3. Banco De Oro (BDO)

Home Loan Features

• Minimum loan amount: PHP 300,000 for lot only and PHP 500,000 for house and lot
• Maximum loan amount: Up to 80% of the property’s appraised value
• Interest rate for existing BDO Clients:

           - as low as 6.75% fixed for one year
           - as low as 7.25% fixed two years
           - as low as 7.50% fixed for three years
           - as low as 7.75%% fixed for four years
           - as low as 8.25%% fixed for five years

• Loan term: Up to 20 years
• Other Important Housing Loan Features: Five-day turnaround time for approval. Purchase of a home and land, an empty piece of land, or a condominium unit. It may be utilized for house building, remodeling, purchase cost reimbursement, or refinancing.

BDO Housing Loans Eligibility

• With a minimum age of 21 and a maximum of 70 when the loan matures
• Earning at least PHP 50,000 a month
• At least two years of stable work
• Employed by oneself: Must have been running a legal and successful company for the last two years
• For overseas Filipino workers, a minimum of two to three years of continuous employment is required.
  
  
  

Requirements for the Bank Home Loan

• Accomplished BDO loan application form
• Photocopy of one valid ID matching the application details
• Any of the following latest income documents for employed applicants:

           - Certificate of Employment and Compensation
           - ITR
           - Payslips for the last three months

• For self-employed applicants:

           - Latest ITR
           - Certificate of Business Registration from SEC or DTI, Articles of Partnership or Articles of Incorporation (whichever is applicable)
           - Business Background or Company Profile
           - Any of these income documents: Audited financial statements for the last two years, bank statements for the last six months, or rental contracts

• For OFWs:
  • Proof of remittance (last three months)
  • Latest crew contract, if sea-based
  • Consularized Certificate of Employment with Income (COEI) or latest three (3) months payslips

4. Metrobank

Home Loan Features

• Minimum loan amount: PHP 500,000
• Maximum loan amount: Up to 90% of the property's net selling price from Metrobank-accredited real estate developers
• Interest rate:

           - 8% fixed for 1-2 years
           - 8.5% for 3 years
           - 8.75% for 4-5 years

• Loan term: Max of 25 years
• Other Important Housing Loan Features: It can be used for a house and lot, vacant lot, or condominium unit purchase. It can also be used for home construction, residential asset acquisition, reimbursement of the acquisition cost, or refinancing.

Metrobank Housing Loan Eligibility

• At the time of loan repayment, you must be at least 21 years old but not older than 65.
• Monthly salary of at least PHP 40,000
• At least two years of consistent employment
• For OFWs

           - OFWs who are either land-based (technical or administrative staff/officers) or sea-based (officer rank) OFWs who have either renewed or signed a contract at loan application
           - For OFWs worked for less than two years on the ground: Working in the United States during the last five years before becoming an OFW or working for different companies, or a mix of both.
           - OFWs who work on ships: With the present agency or with prior agencies, I've completed a total of 48 months of work.


Requirements for the Bank Home Loan

• Accomplished Metrobank housing loan application form
• Clear copy of any government-issued ID
• For employed applicants, any of the following latest income documents must be provided:

           - Certificate of Employment and Compensation
           - ITR
           - Payslips for the last three months

• For self-employed applicants in business:

           - SEC Registration
           - DTI Certificate of Registration
           - Latest ITR
           - Two years of Audited Financial Statements
           - Six months bank statement with BOO Certification of "No overdraft charges."

• For OFWs:

           - Land-based: Certificate of Employment with the email of employer
           - Latest POEA contract, if sea-based

5. BPI Family Savings Bank for Monthly Payments Home Loan

Home Loan Features

• Minimum loan amount: PHP 400,000
• Maximum loan amount:

           - 70% of the appraised value of house and lot
           - 60% of the appraised value of a vacant lot or residential condominium
           - Max of 80% of the appraised value of house and lot (as long as the value doesn’t exceed PHP 5 million)

• Interest rate:

           - 6.25% fixed for one or two year/s
           - 6.75% fixed for three years
           - 7.25% fixed for four or five years
           - 9.50% fixed for 10 years
           - 10.50% fixed for 15 years
           - 12% fixed for 20 years

• Loan terms:

           - Max of 25 years for house and lot
       - Max of 10 years for the following: vacant lot, residential condominium, business loan, refinancing, or multi-purpose loans

• Other Important Housing Loan Features: Processing is fast. When you submit your entire requirements, you may anticipate a response back within five business days. Relatively easy to get into for those with steady incomes and limited spending habits.
  
  
  

BPI Family Savings Bank Housing Loans Eligibility

• Filipino citizen
• The borrower must be of legal age, but no older than 65, at the time of the loan maturity.
• For foreign nationals, they must be married to a Filipino national (this is still subject to documentary requirements)
• A foreign visitor with a valid visa (this is still subject to documentary requirements)
  
  
  

Requirements for the Bank Home Loan

• Successfully completed BPI Family Savings Bank Housing Loan application form
• At least two genuine government-issued identification cards, each must bear a picture and a signature
• For married couples, the application form must be signed by both of them.
• Having a co-borrower or co-mortgagor necessitates the completion of a second application form

6. Rizal Commercial Banking Corporation (RCBC)

Home Loan Features

• Minimum loan amount: PHP 300,000
• Home loan interest rates: 6.88% to 10.5%, depending on the term
• Loan term: Up to 20 years
• Fixing option of one to 20 years
• Other Important Housing Loan Features: Uses include house and lot purchases as well as empty lots and home renovations or house construction. Useful for a variety of purposes, including the purchase or refinance of a primary residence.

RCBC Housing Loans Eligibility

• Filipino or dual citizen
• For foreigners, You must be married to a Filipino citizen in order to apply.
• When applying for a loan, you must be at least 21 years old.
• Upon loan tenure, you need to be 65 years old. (For self-employed applicants, you must be 70 years old upon loan tenure.)
• You must have a cell phone and a landline phone.
• Minimum of one year of work and a minimum gross monthly income of Php 40,000
• If the candidate is an overseas Filipino worker (OFW), they must have worked abroad for at least two years in a row.
• For self-employed, a two-year period of profitability is required.

Requirements for the Bank Home Loan

• Accomplished RCBC Home Loan application form
• Two government-issued IDs
• Income documents for employed applicants:

           - Certificate of Employment
           - Latest Income Tax Return (ITR)

• Income documents for self-employed applicants:

           - DTI Business Registration Certificate
           - Audited financial statements
           - ITR
           - Bank statements




7. Philippine National Bank (PNB)

Home Loan Features

• Minimum loan amount: PHP 500,000
• Maximum loan amount: 80% of the appraised value for house and lot, condo, and townhouse, 70% for lot only
• Other Important Housing Loan Features: Can be used for the purchase of a house and lot, vacant lot, townhouse, or condominium unit. Can also be used for home construction, home improvement, or refinancing

PNB Housing Loan Eligibility

• Filipino citizens
• Minimum age of 21 and maximum of 65 upon loan maturity
• Employed or self-employed individuals

Requirements for the Bank Home Loan

• Housing Loan Application Form (duly accomplished)
• Photocopy of 2 Valid Government-issued IDs
• Appraisal Fee of P3,500 (non-refundable)
• If with co-maker/co-borrower/attorney-in-fact, a separate application form is needed
• Data Privacy Client Consent Form

8. UnionBank

Home Loan Features

• Minimum loan amount: PHP 500,000
• Maximum loan amount: Up to 80% of the property's contract price
• Interest rates: 8% to 11%
• Loan term: Up to 20 years
• Other Important Housing Loan Features: Allows 10% to 99% down payment. Can be used for the purchase of lot, residential property, or condominium, house construction, refinancing, or renovation. Quick approval time

Union Bank Housing Loan Eligibility

• 21-65 years of age, but not older than 70 when the loan is due
• a Filipino or a former Filipino citizen
• Employees with regular contract status
• At least two years of profitable company operation for self-employed persons.
• OFWs

Requirements for the Bank Home Loan

• Accomplished Unionbank Home Loan application form
• Copy of Valid ID (SSS, GSIS, TIN ID)
• If married, Marriage Contract
• Latest income documents for employed applicants:
• Certificate of Employment with Compensation
• Payslips for the last three months
• Income documents for self-employed applicants:

           - SEC or DTI Business Registration Certificate
           - Bank statements for the last six months
           - Financial Statements
           - ITR
           - List of suppliers or customers with contact information

• Additional documents for OFWs:

           - Valid passport with entry and exit stamps
​           - Original and Consularized Special Power of Attorney

Housing Loan Terms to Know

Now that you have knowledge of the best housing loans, it would be wise to also familiarize yourself with these commonly used terms when getting a home loan in the Philippines.

Principal: The total amount borrowed or owed on any type of loan. Making monthly payments on a basic fixed-rate loan will gradually reduce your principal.

Down payment: An upfront payment made by the buyer of a house. In the Philippines, 20% is the usual down payment amount for a bank housing loan.

Interest Rate: The rate that is charged for the use of money. Interest rates are displayed on an annual basis, known as the annual percentage rate (APR). For example, BPI's 10-year fixed loan has an 8% APR.

Loan Tenure or Term: The length of time or period in “months” or "number of years" wherein you can repay your housing loan. If a mortgage has a "tenure" of 30 years, it usually means it would take 30 years to fully pay off the loan. The usual term for housing loans in the Philippines is up to 20 years. Generally, the longer your loan term, the higher the interest rates.

Margin of Finance: The loan to value ratio is another name for the financing margin.

Early Termination Penalty: An early termination fee is a fee charged when a person wishes to terminate the terms of a long-term deal or arrangement. The “Early Termination Fee” applies to the original or beginning payment if the deal has a falling rate. 

Prepayment: This is when you fully or partially pay off your loan before it is due. Depending on the bank, a penalty will be charged for this.

Refinancing: When you pay off an old loan and substitute it with a new one, this is referred to as refinancing.

Foreclosure: Since a mortgage is a secured loan, it requires the borrower to pledge collateral to the lender in the event that they fail to make payments. In this case, the collateral will be the house. 

Equity: Computed as the difference between how much your home is worth and how much you owe on your mortgage or loan.

Amortization: Refers to the amount of principal and interest paid each month over the course of your loan term. Near the beginning of a loan, the vast majority of your payment goes toward interest.
​
Collateral: an item of value that a lender can seize from a borrower if he fails to repay a loan according to the agreed terms. An example is when you take out a mortgage. Normally, the bank will ask you to provide your home as collateral. This means that if you fail to meet the repayment terms of your mortgage, the bank has the right to take ownership of your home.

Co-borrower: Also called a co-applicant, a co-borrower is an individual who applies for and shares liability of a loan with another borrower. Both borrowers are responsible for the repayment.

Letter of Guarantee: This is a type of contract issued by a bank on behalf of a customer who has entered a contract to purchase goods from a supplier.

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