Top Banks for Housing Loan in the Philippines

Top Banks for home Loan in the Philippines

The primary option that Filipinos think of when it comes to financing a housing loan in the Philippines is the PAG-IBIG Fund.  As a result, banks are only considered as fallback choices if the PAG-IBIG loan somehow does not materialize, for a myriad of reasons.

However, going for a bank loan to finance a house and lot purchase is not a bad decision, especially if time is of the essence. Sometimes, you cannot just let a great real estate opportunity pass you by and you need to act with dispatch. Moreover, banks are usually more than willing to offer loans that are relatively not far from what you usually get with PAG-IBIG loan, with some even putting forward interest rates that are lower.

Still, there are hundreds of banks and financial institutions that are registered with the Bangko Sentral ng Pilipinas.  Therefore, selecting the right bank to get a housing loan from is definitely mentally taxing. Be that as it may, we have culled a listing of what we think are the top banks for housing loan in the Philippines.

Top Banks for Housing Loan in the Philippines:

1. Banco De Oro (BDO)

Banco De Oro Home Loan Features:

  • Minimum loan amount: PHP 500,000 for House and Lot, PHP 300,000 for Lot only
  • Maximum loan amount: 80% of the property’s appraised value
  • Interest rates:
    • 6.25% fixed for one to two years
    • 6.75% fixed for three years
    • 7.25%% fixed for four to five years
  • Loan term: Up to 20 years
  • Quick approval time of five banking days
  • Can be used for the purchase of a house and lot, vacant lot, or condominium unit
  • Can also be used for home construction, renovation, reimbursement of acquisition cost, or refinancing

Who Can Apply for a BDO Home Loan?

  • At least 21 years old but not more than 70 years old upon loan maturity
  • Earning a minimum monthly income of PHP 50,000
  • Continuous employment for at least two years
  • For self-employed: Must be operating a legitimate and profitable business for the last two years
  • For OFW: Must be employed for 2 to 3 consecutive years

BDO Home Loan Requirements:

  • Accomplished loan application form
  • A photocopy of one valid ID matching application details
  • For employed applicants – Any of the following latest income documents:
    • Certificate of Employment and Compensation
    • ITR
    • Payslips for the last three months
  • For self-employed applicants:
    • Latest ITR
    • Certificate of Business Registration from DTI or SEC, 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 for the last three months
    • Latest crew contract, if sea based
    • Consularized Certificate of Employment with Income (COEI) or latest three (3) months payslips

2. Security Bank

Security Bank Home Loan Features:

  • Minimum loan amount: PHP 1 million
  • Maximum loan amount: 80% of the property’s appraised value
  • Interest rates:
    • 6.25% fixed for one to three years
    • 6.75% fixed for five years
    • 7.75% fixed for 10 years
  • Loan term: Up to 20 years
  • Quick approval time of five banking days
  • 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

Who Can Apply for a Security Bank Home Loan?

  • At least 21 years old but not more than 65 years old upon loan maturity
  • Earning a combined monthly income of PHP 50,000
  • Continuous employment for at least two years
  • For self-employed: Must be operating a legitimate and profitable business for the last three years

Security Bank Home Loan Requirements:

  • Accomplished loan application form
  • A clear copy of one valid ID with picture (same requirement for spouse or co-borrower)
  • For employed applicants – Any of the following latest 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
    • Any of these income documents: Audited financial statements for one year, bank statements for the last three months, or rental contracts
  • Mortgage Redemption Insurance (MRI) application form
  • Special Power of Attorney (for OFWs only)

3. Metrobank

Metrobank Home Loan Features:

  • Minimum loan amount: PHP 500,000
  • Maximum loan amount: 90% of the property’s net selling price from Metrobank-accredited  developers
  • Interest rates:
    • 5.75% fixed for one to three years
    • 6.75% fixed for four to five years
  • Loan term: Up to 25 years
  • Can be used for the purchase of a house and lot, vacant lot, or condominium unit
  • Can also be used for home construction, residential asset acquisition, reimbursement of acquisition cost, or refinancing

Who Can Apply for a Metrobank Home Loan?

  • At least 21 years old but not more than 65 years old upon loan maturity
  • Earning a minimum monthly income of PHP 40,000
  • Continuous employment for at least two years
  • For OFW: A land based (technical or administrative staff/officer) or sea based (officer
           rank) OFW in active employment, or renewed/signed a contract at loan
           application
         • For land based OFWs employed less than 2 years: Employed locally in the last
           5 years prior to becoming an OFW, or as an OFW with diferent employers,
           or a combination of local and overseas employment
         • For sea based OFWs: Completed a combined contract duration of 24 months
           with current agency, or 48 months inclusive of previous agencies
         • Earning at least $1,000 for self-employed individuals (equivalent to 
           Php30,000), or have the same Gross Monthly Family Income (GMFI) for fixed
           income earners.

Metrobank Home Loan Requirements:

  • Accomplished loan application form
  • A photocopy of government-issued ID
  • For employed applicants – Any of the following latest income documents:
    • 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 email of employer
    • Latest POEA contract, if sea based

4. AllBank

Banking with AllBank gives you access to specialized financing products that offer highly competitive rates for better returns, and banking branches and teller machines near your home.  AllBank also offers top notch customer service innovations. But beyond anything, banking with AllBank makes you feel at ease.  As their tagline says, at AllBank, you can work hard, live well, and bank easy.

All Bank Home Loan Features:

  • Can be used for the purchase of a house and lot, vacant lot, or condominium unit
  • Can also be used for home construction, renovation, refinancing or simply as additional investment
  • For additional information about AllBank’s Home Loan Features, you can visit them at their main branch in 2/F AllBank Bldg, EDSA cor. Cornell St., Brgy Wack Wack, Mandaluyong City, Philippines.
  • Other contact details:
    • Phone: +63 2 8255-2265

5. 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
  • 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

Who Can Apply for a PNB Home Loan?

  • Filipino citizens
  • At least 21 years of age,but not more than 65 years of age upon loan maturity
  • Employed or self-employed individuals

PNB Home Loan Requirements:

  • 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, separate application form is needed
  • Data Privacy Client Consent Form

6. Maybank

Maybank Home Loan Features

  • Minimum loan amount: PHP 500,000
  • Maximum loan amount: 80% of the appraised value for house and lot, condo, and townhouse, 60% for lot only
  • Interest rates:
    • 6.75% fixed for one to two years
    • 7.25% fixed for three to four years
    • 7.5% fixed for five years
  • Can be used for the purchase of house and lot, vacant lot, or condominium unit
  • Can also be used for home construction, home equity, or refinancing

Who Can Apply for a Maybank Home Loan?

  • Your age plus the term of the loan should not be more than 65 years old once the loan matures.
  • You should be gainfully employed in a reputable company for at least 2 years; or
  • You own a business that has been registered and operational for at least 3 years and has been profitable in the last 2 years.
  • For overseas workers, you should have a contract of employment for 2 years.
  • If you are a seafarer, you should be at least in an officer level position and should be working for at least 2 continuous years.
  • An attorney-in-fact is required for overseas workers or seafarer applicants

Maybank Home Loan Requirements:

  • Accomplished loan application form
  • A photocopy of government-issued ID
  • Marriage Certificate (if married) and CENOMAR (if single)
  • For employed applicants – Any of the following latest income documents:
    • Certificate of Employment and Compensation
    • ITR
    • Payslips for the last three months
  • For self-employed applicants in business:
    • Business Registration/ Permits
    • Latest ITR (last two years)
    • Two years of Audited Financial Statements
    • Company Profile
    • Latest 6 months Bank Statements/Passbook
  • For OFWs:
    • Contract of Employment / Employment Certificate
    • History of Employment / Latest Crew Contact (if applicant is a Seafarer)
    • Special Power of Attorney (using Maybank’s format)
    • Latest 6 months bank statements/proof of remittance
    • Latest ITR (if applicable)

7. Unionbank

UnionBank Housing Loan Features:

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

Who Can Apply for a UnionBank Housing Loan?

  • 21 to 65 years old but not exceeding age 70 upon loan maturity
  • Filipino or former Filipino citizen
  • Employees with permanent status
  • Self-employed individuals whose business has been operating profitably for at least two years
  • OFWs

UnionBank Housing Loan Requirements:

  • Accomplished Unionbank Home Loan application form
  • Valid ID (SSS/GSIS/TIN ID)
  • Marriage contract (if married)
  • Latest income documents for employed applicants:
    • Certificate of Employment with salary details
    • Payslips for the last three months
  • Latest income documents for self-employed applicants:
    • DTI or SEC Business Registration Certificate
    • Financial statements
    • Bank statements for the last six months
    • ITR
    • List of customers or suppliers with contact information
  • Additional documents for OFWs:
    • Valid passport with entry and exit stamps
    • Original consularized Special Power of Attorney

8. Bank of the Philippine Islands (BPI)

BPI Family Bank Housing 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
    • up to 80% of the appraised value of house and lot (as long as the value doesn’t exceed PHP 5 million)
  • Interest rates:
    • 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:
    • Up to 25 years for house and lot
    • Up to 10 years for the following: vacant lot, residential condominium, business loan, refinancing, or multi-purpose loans
  • Quick processing (You can expect a reply within five working days after submission of complete requirements.)
  • Good for applicants with conservative earnings and buying patterns

Who Can Apply for a BPI Family Savings Bank Housing Loan?

  • Filipino citizen
  • Must be of legal age but not more than 65 years old upon loan maturity
  • Foreigner married to a Filipino citizen (subject to documentary requirements)
  • Foreigner with resident visa (subject to documentary requirements)

BPI Family Savings Bank Housing Loan Requirements:

  • Accomplished BPI Family Savings Bank Housing Loan application form
  • Two valid government-issued IDs, each with photo and signature
  • If married, both spouses will sign the application form.
  • If with co-borrower or co-mortgagor, a separate application form will need to be filled out.

9. Rizal Commercial Banking Corporation (RCBC)

RCBC Home Loan Features:

  • Minimum loan amount: PHP 300,000
  • Interest rate: 6.38% to 10.5% 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 used for refinancing a home

Who Can Apply for an RCBC Home Loan?

  • Filipino or dual citizen
  • If a foreigner, the applicant must be married to a Filipino citizen.
  • At least 21 years old upon loan application
  • Up to 65 years old upon loan maturity (70 years old for self-employed applicants)
  • Must have a mobile number and a residence or office landline
  • Minimum employment tenure of one year and minimum gross monthly income of PHP 40,000
  • If an OFW, the applicant must have worked abroad for at least two consecutive years
  • If self-employed, the business must be profitable for the last two years

RCBC Home Loan Requirements:

  • 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

10. Chinabank

China Bank HomePlus Loan Features:

  • Minimum loan amount: PHP 500,000
  • Interest rate: 5.75%
  • Loan terms:
    • Up to 10 years for condominium units
    • Up to 15 years for vacant lots
    • Up to 25 years for a house and lot
  • Quick processing
  • Can be used for the purchase of different real estate properties: condominium units, house and lot, or vacant lots
  • Can also be used for house construction, refinancing, and reimbursement
  • Low insurance premiums (as the bank uses its subsidiary, China Bank Insurance Brokers, Inc.)
  • Easy repayment via automatic debit arrangement
  • No hidden charges

Who Can Apply for a China Bank HomePlus Loan?

  • Filipino, of legal age but not more than 65 years old upon loan maturity
  • With a steady and verifiable source of income
  • Has a supervisory/managerial position at a reputable company for at least three years
  • Minimum gross monthly income:
    • PHP 50,000 (Metro Manila and Metro Cebu)
    • PHP 35,000 (other provinces)
  • No adverse records or credit findings, such as court cases, bouncing checks, unpaid loans, canceled credit cards, among others

China Bank HomePlus Loan Requirements:

  • Accomplished China Bank HomePlus Loan application form
  • Valid IDs (TIN, Community Tax Certificate, passport, company ID, driver’s license)
  • Marriage contract (if married)
  • Bio-data/Resume
  • Deposit Statements of Accounts for the last six months
  • For employed applicants:
    • ITR
    • Certificate of Employment stating the length of service and monthly compensation package
  • For self-employed applicants:
    • Audited financial statements and ITR for the last three years (BIR-stamped)
    • Certificate of Registration of Business Name
    • Business profile
    • Complete list of suppliers and clients

In light of the top banks for home loan in the Philippines, let us look at some of the advantages and disadvantages of bank housing loan.

Photo by Kstudio form FreePik

ADVANTAGES OF BANK HOUSING LOAN

1. Affordability

The home loan makes owning a home less difficult for the average middle-class Filipino wage earner.   With minimal baseline requirements, one does not need to be a millionaire in order to afford a home.
Moreover, the home loans have long payment periods, typically it ranges from 15-20 years, which means that the monthly payments are smaller and more affordable.  Therefore, by availing a loan, you can  appreciate the perks of being a homeowner.

2. A Good Avenue of Availing Credit

One of the underrated benefits of a home loan is its interest rate is lower than that of borrowing like a personal loan or other types of loan.  This is for the reason that the bank employs the real estate property as a hedge against the possibility of you defaulting on the payments.

The interest rates of home loans are among the lowest among other types of loans, although the interest varies from one bank to another.  Just do your research so that you can rightly choose the lender that is offering the loan at the most affordable interest rate, since even a slight difference in the interest rate could save you thousands of pesos over the long haul

3. Capital Growth

Over the past few decades, the value of the real estate properties in the Philippines has been steadily appreciating.   Indeed, many experts argue that the capital appreciation of the real estate properties will almost always be higher than the interest you pay on the home loan.

For example, if you have availed a home loan at the interest rate of 10 per cent and if the value of the property gradually rises even by 20% by the end of the loan period, then you will have earned money through capital appreciation.  The appreciation of capital will assist you in recouping all of your expenses and earning a tidy sum on the side if ever you decide to sell the property.

4. Disciplined Way to Save

When you have disposable income on hand, the temptation of spending can be very irresistible.  If you are very positive that you will have a stable job or income stream but are too undisciplined to save any money, then taking a home loan is a good way to have savings.

You can view your monthly mortgage as savings rather than expenses.  This is for the reason that once you repay the loan completely, you will become the legitimate owner of the house, which will have a higher value at the end of the loan tenure.

5. Ensures Safety of the Property

Purchasing a home is a lifetime commitment, and you would definitely like to make sure that the property is devoid of any legal issues.   When you go to the bank to apply for a housing loan, the bank will do a full background check of the reputation of the builder as well as the property itself. They will go over the papers linked with the property and make sure that the building is legal and that the developer has obtained all the pertinent certificates from the government authorities.

In addition, the bank will see to it that the property is not immersed in any legal disputes. Hence, you need not experience this whole tedious process by yourself, and if the bank greenlights the loan, you rest assured that your property is safe.

6. Improves Loan Eligibility

When you are repaying your home diligently or if you have already repaid the loan in full, your credibility to the banks will automatically increase, and the banks will categorize you as a responsible borrower.  This will assist you in increasing your loan eligibility.  You can use this to your benefit and avail other loans at more affordable rates.

DISADVANTAGES OF BANK HOUSING LOAN

1. Lifelong Obligation

Once the bank greenlights your home loan, you are shouldering a huge obligation for a long period of time.  The average lifespan of a home loan is between 10 to 30 years.  This means that you will be saddled with debt for a huge chunk of your life. Once the loan has started, you would have to be disciplined enough to control your expenses and be diligent on your mortgage payments.

2. May Be Risky

As mentioned above, a home loan can last from 10 to 30 years.  During this period, many unfortunate events can occur, some of which would make it harder for you to repay the loan.  Events such as marital problems, sudden ailments, job loss, accidents, can put you in a predicament where you could not afford to pay the mortgage anymore, which in turn can result in your house being foreclosed.

3. Opportunity Cost

This is one of the most overlooked disadvantages of a home loan.  The money you use for mortgage payments could have been invested in an investment opportunity that could earn you higher returns. Imagine, instead of paying mortgage, you could have invested in mutual funds, treasury bonds, or in the stock market, which can be argued as better money-making avenues.

With the points elaborated above, it is very clear that home loans have advantages and disadvantages.  But still, if your dream is to own a home as soon as possible, availing a home loan is still the way to go.  Just be prepared to do your research well about the different banks, as well as read the finer details of the loan so that you can decide wisely and leave no stone unturned.

If you are thinking about which house to purchase for a home loan, BRIA Homes would definitely be a great choice for you. 

Bria Homes is a subsidiary of GOLDEN MV Holdings, Inc., one of the largest real estate companies in the country.  BRIA Homes is primed to bring quality and affordable house and lot packages and condominium units closer to ordinary Filipino families. This is the goal that drives every single employee in the company, for which the ultimate fulfillment is seeing a client happily moving into BRIA’s homes.

To know more, visit their website at www.bria.com.ph, like and follow “Bria Homes, Inc.” on Facebook, Twitter, Instagram, YouTube, Pinterest, Spotify, Viber Community, Telegram Channel, Kakao Talk, LINE and WhatsApp, or call 0939-887-9637.