Build Your Own House With Best Home Loans in the Philippines

By JDC Wednesday, July 5, 2023

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Securing a home is a significant milestone for many Filipinos, and with the availability of housing loans, this dream has become more achievable than ever before.

In the Philippines, numerous financial institutions offer a variety of housing loan options tailored to meet the diverse needs of potential homeowners. Whether you're a first-time buyer or looking to invest in a new property, understanding the housing loan landscape is essential.

This comprehensive guide will walk you through the key aspects of housing loans in the Philippines.

For other type of loans, visit my detailed guide for best personal loans and car loans in the Philippines!

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Understanding Housing Loans

A housing loan, also known as a home loan or mortgage, is a type of loan specifically designed to help individuals or families purchase real estate. These loans often cover a portion of the property's total cost, allowing buyers to make a down payment and repay the borrowed amount, including interest, over an agreed-upon period.

Types of Housing Loans

• Home Purchase Loan: This type of loan assists buyers in acquiring a new house or condominium unit.
  
  
• Home Construction Loan: Designed for those planning to build a house on their lot, this loan provides funds in stages as the construction progresses.
  
  
• Home Renovation Loan: Aimed at homeowners looking to renovate or upgrade their existing properties.
  
  
• Home Equity Loan: Allows homeowners to leverage the equity in their property, using it as collateral for a loan.
  
  
• Refinancing Loan: Enables borrowers to pay off an existing housing loan with a new loan, often to secure better terms or lower interest rates.

Key Considerations for Housing Loans

Interest Rates

Housing loans come with fixed or variable interest rates. Fixed rates remain constant throughout the loan tenure, providing predictability, while variable rates can fluctuate based on market conditions.

Loan-to-Value Ratio (LTV)

LTV ratio represents the percentage of the property's appraised value that the lender is willing to finance. A lower LTV may require a larger down payment.

Loan Terms

The loan term refers to the duration within which the borrower must repay the loan. Shorter terms result in higher monthly payments but lower overall interest costs, while longer terms offer lower monthly payments but higher total interest.

Eligibility Criteria

Lenders establish specific eligibility criteria, including age, employment status, minimum income, and creditworthiness.

Required Documents

Applicants must provide various documents such as proof of identity, income documents, property details, and financial statements.

Choosing the Right Lender

When selecting a lender, it's crucial to compare interest rates, loan terms, and additional fees. Additionally, consider the lender's reputation, customer service, and responsiveness to inquiries.

1. BPI Housing Loan

Nowadays, you can acquire a brand new house and lot even if you don’t have a huge amount of money. That can happen through housing loans offered by several banks including the BPI.

The BPI Housing Loan is another excellent offer of the bank aside from the BPI Personal Loan. Under the former, you can apply for an opportunity to buy your own house and ditch away the rent.

BPI Home Loan Rates and Features

• Minimum loan amount: ₱400,000
• Maximum loanable amount: Up to 90% of the property’s price
• Interest rate:
• 6.25% for one-year and two-year fixing
• 6.75% for three-year fixing
• 7.25% for four-year or five-year fixing
• 9.50% for 10-year fixing
• 10.50% for 15-year fixing
• 12% for 20-year fixing
  
  
• Maximum loan term: Up to 20 years
• Eligible purposes for the loan: 
• New home purchase
• House construction
• Renovation
• Property Equity Loan

To apply and to know more, visit my guide on How To Apply For BPI Housing Loan Online

2. RCBC Home Loan

Aside from the banks personal loan, RCBC offers the lowest minimum loan amount on this list. This is particularly useful if you plan to borrow just a fraction of the home’s price tag and repay the loan as quickly as possible.

RCBC Home Loan Features

• Minimum loan amount: ₱300,000
• Interest rate: 6.88% to 11% depending on the term
• Loan term: Up to 20 years
• Fixing option of one to 20 years
• Can be used for the purchase of a house and lot, vacant lot, and home renovation
• Can also serve as a multi-purpose loan or for home loan refinancing

To know more, visit RCBC Home Loan Guide (Requirements and Application Process)

3. Metrobank Home Loan

Metrobank offers the flexibility to borrow up to 80% of the property's selling price, making it a great choice for individuals with limited down payment funds. This program caters not just to first-time homebuyers; if you're considering your second home, Metrobank's package stands out as one of the top housing loan options in the Philippines. What sets it apart is its unique feature that enables you to leverage your existing property as collateral to acquire a new real estate asset.

Metrobank Home Loan Features

• Minimum loan amount: ₱500,000
• Maximum loanable amount: Up to 80% of the property’s price
• Interest rate:
• 7.75% for one-year fixing
• 8% for two-year fixing
• 8.50% for three-year fixing
• 8.75% for four-year or five-year fixing
  
  
• Maximum loan term: Up to 25 years
• Eligible purposes for the loan: 
• Lot purchase
• House construction
• Second home acquisition using the existing property as collateral
• Reimbursement
• Refinancing
• Home upgrades

Visit Metrobank Home Loan Guide to know more!

4. UnionBank Home Loan

If you’re looking to get a home loan from a bank that’s well-recognized in the Asian market, UnionBank may be the right choice for you.

It’s also easy to get a UnionBank home loan with its wide range of accredited real estate developers. If you’re buying from any of its accredited developers, like Avida, Ayala, Camella, Filinvest, Megaworld, or SMDC, you can apply for a UnionBank housing loan as long as you satisfy the bank’s requirements.

UnionBank Home Loan Features

• Minimum loan amount: ₱500,000
• Maximum loan amount: 90% of the property’s appraised value
• Interest rates: 6% to 11%
• Loan term: One to 20 years
• Allows 10% to 99% down payment
• Can be used for the purchase of a lot, house and lot, or condominium, house construction, refinancing, or home renovation
• Quick approval time

Go to UnionBank Home Loan Guide to see the requirements and application process!

5. PNB Housing Loan

Need the best home loan in the Philippines for various purposes―from the purchase of a new house to reconstructing your current home? Then check out PNB’s Housing Loan. 

PNB offers one of the best housing loan rates and terms in the Philippines, allowing you to own your dream home at a price you can afford.

PNB Housing Loan Features

• Minimum loan amount:
• Lot purchases within and outside Metro Manila: ₱500,000
• House and lot, townhouse, or condominium purchase within Metro Manila: ₱750,000
• ₱500,000 outside Metro Manila
  
  
• Maximum loanable amount:
• Lot property: up to 70% of the appraised value
• House and lot, townhouse, or condominium: up to 80% of the appraised value 
• Interest rate: 6.25% per annum (current rate = 1.25% + 5% fixed rate)
  
  
• Maximum loan term: 
• Lot purchase, home improvement, or redesign: Up to 10 years
• Purchase of house and lot, townhouse, or condominium unit, and for house construction: Up to 20 years
  
  
• Accredited home developers: Eton, Ayala, Filinvest, Robinsons, Arthaland, Megaworld, SMDC, DMCI, Vista Land, Shang Properties

To apply and to know more, visit my guide on How To Apply For PNB Housing Loan

6. Security Bank Housing Loan

Securing your dream home is made easier with Security Bank’s housing loan options. Whether you're planning to buy a new house, construct your dream home, or refinance your existing property, Security Bank offers competitive loan features to cater to your needs.

Security Bank Housing Loan Features

• Minimum loan amount: ₱1 million 
• Maximum loan amount: 90% of the property’s appraised value, up to ₱10 million
• Interest rates:
• Loan term: Up to 25 years
• Quick approval time of ten banking days, depending on submitted documents
• Can be used for the purchase of a house and lot, vacant lot, or condominium unit
• Can also be used for home construction, renovation, or refinancing

Check requirements and application process for Security Bank Housing Loan

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7. HSBC Home Mortgage Loan

Wondering why HSBC offers one of the best housing loans in the Philippines? Homeowners who need more funds to purchase property in expensive areas turn to global banks like HSBC because they offer home mortgage loans of up to ₱50 million. 

HSBC Home Mortgage Loan Features

• Minimum loan amount:  ₱700,000
• Maximum loan amount: ₱50,000,000
• Interest rate: 4.99% to 6.29%
• Loan-to-value ratio (LTV): 60% to 80% maximum of the appraised value or selling price of the collateral or property, whichever is lower
• Loan term:
• 12 months up to 10 years
• Or up to client's age of 65 upon loan maturity, whichever is earlier
  
  
• Acceptable property types:
• House and lot
• Condominium
• Townhouse
• Vacant lot (for a residential house)
• Pre-sell residential properties of accredited developers
  
  
• Flexible repayment schemes
• An array of interest-rate fixing options for new loans and repricing

Learn more about HSBC Home Loans

8. China Bank HomePlus Loan

With flexible repayment terms and multi-purpose loans, China Bank makes a great pick for first-time home buyers. You can have your interest rate fixed for one, five, or ten years.

China Bank HomePlus Loan Features

• Minimum loan amount: ₱500,000
• Interest rates:
• 5.50% for one-year fixing
• 6.25% for two-year and three-year fixing
• 7.25% for four-year and five-year fixing
  
  
• Loan terms:
• Condo units - up to 15 years
• Vacant lots - up to 10 years
• House and lot - up to 20 years
  
  
• Quick processing
• Can be used for the purchase of different real estate properties, house construction, refinancing, and reimbursement
• Easy repayment via automatic debit arrangement
• No hidden charges

If you think this fits your needs, here's how to apply for China Bank HomePlus Loan

9. Maybanks MaxiHome Loan

Maybank’s MaxiHome Loan is recognized for offering unique financing options that depend on the borrower’s purpose. They have options for home acquisition, home construction, home equity, and home loan refinancing. Simply put, applying for a MaxiHome Loan lets you own a new address, be it a house, a condominium, a townhouse, or a lot.

Maybank MaxiHome Home Loan Features

• Minimum loan amount: ₱500,000
• Interest rate:
• 6.75% for one-year fixing
• 7.25% for three-year fixing
• 7.50% for five-year fixing
  
  
• Maximum loan term: 20 years
• All properties are subject to appraisal. Appraisal fee is non-refundable
• Loan accounts are subject to Life/Mortgage Redemption Insurance (MRI) and Fire Insurance (FI) coverage

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10. AUB Preferred Home Loan

The bank describes its home loan services as “personalized,” which means you can expect it to provide sound advice regarding your plans. New home buyers will certainly benefit from this service. On top of that, AUB offers an interest rate cap on its home loan, which may protect you from rising interest rates in the future.

AUB Preferred Home Loan Features

• Minimum loan amount: ₱1 million
• Maximum loan amount: Up to 80% of the appraised property value
• Interest rates:
• 6% fixed for one year
• 6.5% fixed for three years
• 7% fixed for five years
  
  
• Loan term: Up to 20 years
• Easy repayment through auto-debit arrangement
• Home Rate Protect that puts an interest rate cap of 9% on home loans

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