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Are you dreaming of owning your own home but unsure which housing loan fits your needs? Finding the right housing loan in the Philippines can be challenging, especially with varying financial terms, interest rates, and loan conditions across different banks. Many potential homeowners feel overwhelmed by the numerous choices, often struggling to identify which option truly offers the best value.
Therefore, this guide aims to simplify the entire process by providing detailed insights into the housing loan offerings of prominent banks such as BDO, Maybank, and RCBC. You'll discover essential details about loanable amounts, interest rates, and repayment terms. It is safe to say that by the end of this blog, you'll have complete knowledge about each bank operating in the country to confidently choose the best housing loan for your dream home in the Philippines.
Best Banks Offering Housing Loans in The Philippines - An Overview
1. Banco De Oro (BDO)
Banco De Oro (BDO) offers some appealing options for those seeking a housing loan in the Philippines. Known for its flexible terms and competitive interest rates, BDO provides financing solutions for various needs, whether you're purchasing a house, building, or refinancing.
Loanable Amount and Maximum Loan Limits
BDO sets a minimum loanable amount of PHP 500k for a house and lot. The bank covers different property types, including lots, houses, and condominiums. They offer a maximum loan amount of up to 80% of the appraised value for a house and lot or townhouse and up to 70% for vacant lots and condominium units. This structure allows borrowers to receive substantial financing with a relatively lower upfront investment.
Interest Rates
Interest rates play a critical role in choosing a home loan, and BDO offers existing clients an interest rate of 6.75% for a one-year loan, increasing to 8% for a five-year term. For new clients, the rates are slightly different, with 7% for a one-year loan and 8.25% for five years.
Loan Terms and Uses
- BDO offers up to 20 years for house and lot purchases, and townhouses,
- up to 15 years for condominium units,
- and up to 10 years for vacant lots.
Their loans support a variety of uses, like buying homes and lots, building, renovating, reimbursement, or loan refinancing.
Additional Costs
Typically, borrowers make a down payment of around 20% of the purchase price in the housing market. Additionally, borrowers may need to pay Lender's Mortgage Insurance if they borrow over 80% of the property's value.
2. Maybank
Maybank's housing loans are a compelling option for anyone in the Philippines looking to finance their dream home. Starting with the loanable amount, borrowers have the flexibility to secure a minimum loan of PHP 500k. This is a crucial consideration for those looking to borrow within modest means.
However, Maybank also provides ample room for larger financial undertakings, offering up to 90% of the appraised value of your house and lot, condominium, or townhouse. For those focusing on residential lots, Maybank caps loans at 60% of the appraised value.
Interest Rates
Interest rates are always a significant talking point, and Maybank does not disappoint. They offer a range of fixed-rate options, such as:
- 6.75% per annum for a 1-year fixed period
- 7.25% for three years
- 7.50% for five years
Each of these options provides stability and an opportunity to budget accurately without fear of fluctuating market changes. That said, be aware that annual repricing may occur, which is a common practice that aligns with industry standards.
In terms of the loan term, Maybank offers significant flexibility. While many banks operate on a maximum loan term of up to 20 years, Maybank's home loans potentially offer a 30-year repayment period, however, for accurate details, borrowers are free to always check with the bank directly.
Loan Uses
Maybank's housing loan uses are also quite diverse. Whether you're looking to purchase a house and lot, a condominium unit, or a townhouse, Maybank has a tailored offering to meet your needs. The defined uses do not specifically mention options like home equity, home construction, or refinancing, but you can discuss these aspects directly with a Maybank representative if these are your priorities.
However, their versatility in covering different types of properties adds significant value to those who are in the market for such investments.
Also Read: VA Small Business Loans Guide for Disabled Veterans in The Philippines
3. Rizal Commercial Banking Corporation (RCBC)
For those exploring housing loan options in the Philippines, RCBC presents comprehensive and flexible solutions.
Loanable Amount and Maximum Loan Amount
RCBC caters to substantial property investments with a starting loan amount of PHP 1 million for purchase and refinancing ventures. For construction and renovation, they offer loans starting from PHP 300k. They allow borrowers to acquire up to 80% of the property's appraised value, accommodating significant investments.
Interest Rates and Loan Terms
RCBC boasts competitive interest rates. They are as follows:
- 6.38% for 1-year, increasing marginally to 6.50% for 2 to 3-year terms,
- 6.88% for 4 to 5 years,
- 8.50% for terms between 6 to 10 years.
The maximum loan term stretches to 20 years, providing ample time for financial planning.
Utilization Flexibility
RCBC Home Loans can be utilized for purchasing houses, townhouses, or condominiums. They also support construction projects, major repairs, and home improvements, along with refinancing existing loans, thus offering extensive utility for various homeowner needs.
4. Metrobank Home Loans
Metrobank provides a flexible borrowing range, typically financing 70% to 80% of your property's value, with amounts starting from PHP 500k up to potentially PHP 100 million.
Interest Rates
The fixed interest rates between 5.50% to 10.50% give borrowers the certainty of stable monthly payments, which aids in financial planning over long periods, with terms extending up to 25 years.
Loan Term
Home loans can be stretched over 25 years, making repayment more manageable. This applies when borrowers purchase an array of property types from houses and lots to condos. However, for OFWs, the terms are capped at 15 years, or 10 years for vacant lots.
Uses
These loans are versatile, and not confined to purchasing. They can fund home construction, renovations, expense reimbursements, and refinancing.
Income Requirements
The minimum monthly income requirement is set to ensure stable repayments. Here, take a look at some of the crucial income requirements:
- Locally employed and self-employed borrowers need at least PHP 40k per month.
- OFWs need around PHP 50k monthly.
Also Read: Getting Approved For Bad Credit Loans in The Philippines
5. UnionBank of The Philippines (UBP)
UnionBank of the Philippines offers home loans that stand out for their flexibility and high borrowing limits. With a minimum loanable amount of PHP 200k, UnionBank allows borrowers to finance up to 99% of the property's value. This significantly reduces the upfront financial burden for potential homeowners, making the buying process more accessible.
Interest Rates
Interest rates at UnionBank are competitive, ranging from 6% to 11%, depending on your preferred loan term.
- For terms between 1 to 5 years, the rate is approximately 9.50%.
- UnionBank also supports long-term borrowing, with loan terms that can extend up to 20 years.
Eligibility Criteria
It's important to note that borrowers should be between 21 and 65 years old at the time of application and should not exceed 70 years by the loan's maturity. Moreover, UnionBank's home loan services offer great versatility beyond just purchasing properties.
Whether it's acquiring a condo unit, building a home, purchasing land, refinancing an existing home, or funding renovations and expansions, UnionBank accommodates a wide range of needs. Additionally, reimbursement options for previously incurred expenses are available, providing further financial flexibility.
Future Prospects
With market conditions fluctuating, UnionBank remains favorable especially as mortgage rates are predicted to drop to the low-6% by 2024 and possibly high-5% by 2025. Given that 85% of potential buyers are waiting for rates below 6% to make their purchase, more insights can be checked through this market analysis.
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6. Security Bank
Security Bank in the Philippines provides flexible and accessible housing loan offerings. Potential borrowers interested in securing a home loan with this bank can expect a straightforward application procedure, although it requires you to submit several financial documents. This process ensures that the bank can adequately assess your creditworthiness.
Interest Rates
One of the appealing aspects of Security Bank's offering is the competitive fixed interest rates: 8.25% for three years and 8.75% for five years. These rates provide a degree of financial predictability for borrowers, which can be a significant advantage in managing long-term finances.
While there is a specific minimum loanable amount mentioned, around PHP 1 million, there is also flexibility that allows the bank to tailor its offerings to meet individual needs. Additionally, the maximum loan amount isn't specified either; it's typically based on the borrower's collateral value and financial capacity—meaning your loan size could potentially align closely with your financial situation and objectives.
In terms of the loan term, Security Bank offers flexibility again, allowing adjustments based on the borrower's requirements and the type of loan, stretching to a maximum repayment term of up to 20 years. This is especially useful if you're planning out long-term financial commitments that align with life events or other significant financial changes.
Uses
The uses of the home loan are quite expansive. Whether you're looking to purchase a house and lot, a condominium, or a vacant lot, or considering home construction, renovation, or loan take-out/refinancing, Security Bank has you covered.
Eligibility Requirements
- You must be between 21 and 65 years old upon loan maturity
- Earn a minimum combined monthly income of PHP 50k
- Be continuously employed for at least two years or have operated a profitable business for the last three years if self-employed
Necessary Documentation
- Latest Certificate of Employment and Compensation
- Latest Income Tax Return
- The last three months of Payslips
- Bank Statements
Their straightforward application process combined with comprehensive eligibility criteria ensures that the banking process is as smooth and tailored personally as possible.
Also Read: Getting a Personal Home Loan as a Foreigner in The Philippines
7. Bank of the Philippines Islands (BPI)
One of the standout features of BPI Family Savings Bank's housing loans is the flexibility in the loanable amount. For those eyeing a house and lot, BPI offers a maximum loan of up to 90% of the property's appraised value. This is beneficial as it allows borrowers to maximize their borrowing potential.
On the other hand, for a vacant lot or a residential condominium, you can avail up to 60% of the appraised value. The minimum loan amount starts at PHP 400k, making it accessible for a wide range of property acquisitions.
Loan Term Options
BPI provides loan terms that range from 1 to 20 years depending on the property type. Vacant lots, residential condominiums, business loans, and refinancing options have a maximum loan term of 10 years. Meanwhile, other types of properties such as a house and lot can go up to a 20-year term, giving borrowers the flexibility to choose a repayment period that fits their financial capacity.
Interest Rates
BPI's interest rates are competitive, with different fixed rates locked in for various terms. For example, a 7.00% rate is fixed for a one-year term, increasing slightly for longer durations.
For reference, a Reddit user highlighted that one of BPI's promotions offered a 7% interest rate locked for 7 years along with waived bank fees of approximately PHP 21k, making it an attractive option for borrowers looking to minimize upfront costs.
Versatile Loan Uses
BPI Family Savings Bank loans are versatile and can be utilized for various purposes such as acquiring an apartment, townhouse, residential building, or even as a business loan. Additionally, they cater to refinancing needs and other multi-purpose loans, making them a practical solution for diverse financial requirements.
8. China Bank HomePlus Loan
When considering financing options for your next real estate venture in the Philippines, the China Bank HomePlus Loan stands out as a versatile choice. With a range of loan purposes and flexible terms, this option caters to diverse housing needs.
Loanable Amount and Terms
The China Bank HomePlus Loan suits those seeking substantial financial support, with a minimum loanable amount of PHP 500k. Importantly, borrowers can secure a loan amounting to up to 60% of the property's appraised value, making it a considerable option if you're planning on using your property as collateral.
Competitive Interest Rates
Interest rates can significantly affect your monthly payments and the total cost of the loan. China Bank provides competitive fixed and adjustable rates, ensuring you have options that match your financial plans.
- For a fixing period of 1 to 3 years, the interest rate is set at 7.50% per annum, and for a longer period of 4 to 5 years, it shifts slightly to 8% per annum.
- These rates allow you to select a plan that offers predictability in payments during the fixed period.
Diverse Loan Terms
China Bank specifically tailors loan terms based on the property's nature and the intended use, which range considerably.
- For those acquiring a vacant lot, a home renovation project, or refinancing needs, the terms extend up to 10 years.
- If you're acquiring a condominium unit, the loan term stretches to 15 years; for townhouses and house-and-lot purchases, it extends further to 20 years.
This flexibility ensures that repayment schedules can be more manageable, depending on your financial situation and future income projections.
Versatile Uses
The flexibility of the China Bank HomePlus Loan isn't just limited to terms and interest rates. The loan can be utilized for various purposes, catering to both first-time buyers and those looking to improve or refinance existing properties.
Whether it's purchasing a new home, constructing a new structure, undertaking renovation projects, or refinancing an existing loan, this product is designed to adapt to your property-related needs.
Also Read: Fighting Loan Shark Harassment in the Philippines
9. Philippine National Bank (PNB)
When exploring housing loans in the Philippines, the Philippine National Bank (PNB) stands out for its flexibility and comprehensive range of loan products. Whether you are buying a new home, constructing, renovating, or refinancing your current property, PNB offers tailored options to meet these needs.
Loanable Amount
While PNB does not explicitly specify a minimum loan amount for its general housing loans, it does require borrowers to submit various financial documents such as Income Tax Returns, recent payslips, and bank statements.
For PNB's specialized Home Flexi Loan, the minimum loan threshold is set at PHP 500k, with a ceiling of PHP 10 million per borrower. This wide range ensures that potential homeowners have access to sufficient funds, subject to credit assessment and policies.
Maximum Loan Amount
PNB offers borrowers loans that cover up to 80% or even 90% of the property's appraised value. This LTV or loan-to-value ratio is contingent on the borrower's credit profile and the loan type.
Interest Rates
PNB's interest rates are competitive, with options for both fixed and adjustable rates. The rates begin from 8.40% per annum, with variability based on factors such as the loan amount, LTV ratio, and the borrower's creditworthiness.
Loan Term
The loan tenure with PNB is diverse, accommodating various borrowing needs. For the Home Flexi Loan, borrowers can choose terms ranging from 1 to 10 years.
Uses and Eligibility
PNB's housing loans are versatile, supporting a range of financial goals from buying a new home to personal projects like furniture or fixtures. Eligibility for these loans hinges on documentation of financial health, employment stability, and creditworthiness.
Prospective borrowers should be aware of the additional costs entailed in purchasing a home, which can add approximately 5% to the purchase price due to legal charges, government fees, and other expenses.
Are you looking to avail of a housing loan in the Philippines but are unsure how to go about it? Check out this detailed video. Here, reputable real estate broker Leslie Lazarte explains in great detail how you can apply and get approved for a housing loan in the Philippines without the fear of getting rejected.
10. AllBank
AllBank stands out in the Philippine housing loan market with flexible offerings tailored to suit a variety of borrower needs. One of the key factors that make AllBank attractive is its allowance for loanable amounts up to 90% of a property's value. This provision eases the financial burden on homebuyers, meaning you could own your dream house with a more manageable cash outlay.
Flexible Loan Tenure and Usage
Depending on the specific type of loan you are seeking, AllBank offers loan terms that can stretch from 5 to 20 years. The flexibility in loan tenure ensures you can find a repayment schedule that fits comfortably within your financial plans. Whether you're looking to purchase a new home, construct one from scratch, or add value to your existing property through renovation, AllBank has options to cover these needs.
The loans also extend to:
- Refinancing an existing mortgage
- Enabling additional real estate investments for those looking to diversify their portfolio
Competitive Interest Rates
Interest rates are a significant consideration when choosing a housing loan. AllBank provides competitive interest rate options to borrowers, with 6.88% for a 3-year loan term and 7.88% for a 5-year term. These rates offer predictability and affordability, crucial for long-term financial planning. As interest rates can directly affect your monthly payments, the relatively low rates can be seen as a cost-saving benefit over the lifespan of the loan.
No Specified Minimum Loanable Amount
While AllBank does not specify a minimum loanable amount, this often depends on an applicant's creditworthiness and the specific loan type selected. This implies a level of personalization where loan offerings are potentially adapted to better fit the financial standing and objectives of diverse clients. Aspiring homeowners can better focus on their property goals instead of being constrained by rigid loan prerequisites.
Versatility for Modern Needs
The versatility and tailor-made approach of AllBank's housing loans make it a strong contender for those navigating the housing market in the Philippines. Whether you're an individual buyer, a family looking to upgrade, or an investor adding properties to your portfolio, AllBank provides comprehensive, flexible solutions that align with contemporary financial needs and aspirations.
Conclusion
As this article explains in great detail, the Philippines' economic landscape offers a wide range of housing loan options to Filipinos via leading banks, each providing unique benefits such as competitive interest rates, flexible repayment terms, and added perks like waived fees or pre-approval processes. By carefully comparing these banks’ offerings and considering your financial capacity, you can find the ideal loan to help you secure your dream home.
However, if you're exploring alternative financing options, N90 can assist with flexible and efficient solutions. Our revenue advance and business loan services can help supplement your housing budget or provide additional liquidity for related needs. With quick approvals within 24 hours and transparent loan terms, N90 supports you in achieving your financial goals with ease and confidence.
Frequently Asked Questions (FAQs)
1. Which bank is the best for a housing loan in the Philippines?
BDO, BPI, and Pag-IBIG Fund are among the top choices for housing loans in the Philippines. BDO offers flexible terms and high loanable amounts, BPI is known for competitive interest rates and online services, while Pag-IBIG Fund provides affordable financing for eligible members.
2. What is the current home loan interest rate in the Philippines?
As of October 2024, home loan interest rates in the Philippines typically range from 5.25% to 8%, varying by bank and loan term. For example, BDO offers a 7.25% rate for a 1-year fixed term, while EastWest Bank provides a 5.25% rate for the same period.
Rates are subject to change; so it is a good idea to consult the banks directly for current offers.
3. How much is the loanable amount for a BPI housing loan?
BPI offers housing loans starting at PHP 400k, financing up to 90% of the property's value. BPI Repayment terms range from 1 to 20 years, with interest rates varying based on the chosen fixing period.
For example, a 1-year fixing period has an interest rate of 7.00%, while a 5-year fixing period is at 8.25%.
4. What bank is offering the lowest mortgage rates in the Philippines?
As of October 2024, EastWest Bank offers one of the lowest home loan interest rates in the Philippines, with a 5.25% rate for a 1-year fixed term. Other banks, such as RCBC and PNB, also provide competitive rates starting at 5.00% and 6.15%, respectively.
