Why does Bank Housing Loans Make more sense than other financing options?


At one point in each of our lives, the thought of purchasing our dream house might cross our minds. In the event that we decide to do so, whatever form this property is, we will be presented with different financing options to help you pay your monthly payments. In this particular column, we will be addressing why bank housing loans make more sense than the other financing options for your monthly amortization. 

One of the well-known existing housing loan in the Philippines is the Client Home Development Mutual Fund (HDMF) or popularly known as Pag IBIG Fund. Pag IBIG is a government-owned and controlled corporation originally created to encourage Filipinos to save but later on re-purposed to answer the housing needs of the Filipino people through its saving programs by offering affordable housing loan financing.

In-house financing, on the other hand, is notorious for its high-interest rates with minimum loan amount but less complicated process and paperwork. Other financing options such as Deferred and Spot Cash payments are viable options for those buyers with money on hand.

Lastly, there is also what we call as bank housing loan. As the name itself, these types of housing loans are provided by the bank of your choice. There are top banks that offer these kinds of loans.

Bank Housing loans have several advantages and here are the reasons that they make more sense than other housing loans:

1. No Membership/Contributions Required

Membership fees and contributions are a common prerequisite in availing of a home loan in most institutions, especially in Pag IBIG. However, in bank financing, no memberships are needed to avail a loan as long as you have a savings account, credit standing available or audited financial statements. This saves the buyer a lot of time as fewer requirements are needed to have complied. Bank financing is a more traditional type and is easy to apply for, as long as proper requirements are met.

2. Fast Approval

Bank Housing loans generally are approved faster compared to other financing institutions. When proper requirements and housing loan application form are met and complied with, a buyer can expect an approval time within 5-7 days. This is vital for property buyers looking to move in at the soonest possible time. Most developers do not allow buyers to move in the property without securing the loan approval of a financing institution. Through bank financing, one can enjoy easier and faster transactions.

3. Competitive Interest Rates

Homebuyers are generally keen on how much the compounded interest will be when they purchase a property. It can be discouraging for some to find out how high the interest rates are. Thankfully, bank housing loans typically has fixed interest rates and payment terms. However, in some cases, the interest rates may be adjustable. Unique factors such as economic conditions can also help determine this factor.  

Furthermore, there are banks that offer competitive rates to attract potential homebuyers like you. For BDO, Maybank, and Security Bank home loan, the interest rates for a 1-year fixing period are 6.25%, 6.75%, and 6.25% respectively. This can be a good or bad option depending on the economic state of the country. 

4. No Maximum Loan Amount

In bank housing loans, buyers will be delighted to know that there is no maximum loan amount restricted by banks. Unlike other financing options where they are capped at a certain million, bank institutions allow no limits in the loanable amount as long as buyers are qualified. Needless to say, proper documents and requirements must be submitted for assessment. Minimum loan amount will depend on the property’s appraised value.

5. Shorter Repayment Terms

Some buyers are also extra weary when it comes to the amount of the “would be” total payments through financing. Longer repayment terms mean an increment in the total payments to be made. In bank financing, locally employed and overseas Filipino workers have a maximum of 20 and 15 years for their repayment terms respectively. Buyers are even given the flexibility to opt for much shorter terms given that they are qualified based on their incomes. 

Taking up a loan to buy our dream property is a reasonable decision that we often think and consider carefully. Wrong decisions could cost you more harm in the future than you think. It is always best to consider your needs and be realistic with your expectations and what you can genuinely afford.


With different financing options available, home shoppers are an inch closer to achieving their dreams of acquiring their very own home. Needless to say, all financing institutions have their own advantages. Due to their acceptable repayment periods and relatively lower interest rates, bank loans are now widely promoted and encouraged as the financing option that best suits your capacities and needs.

Affordable House and Lot

Now that you’ve got to know bank housing loan advantages, it might be time for you to look for a property suitable for your needs.

Bria Homes, a trustworthy and fast-growing developer in the Philippines might just be what you need. With over 50 projects nationwide, Bria offers House and Lots and Condominiums that are situated in key locations that will provide economic growth for its homeowners.

Real estate, amidst the pandemic is seen to be one of the most stable investments. House and Lots, and condominiums are among the investment vehicles you can choose from in Bria Homes. Aside from its stability, real estate also poses as one of the safest investments for beginners.

Those are just some of the things that real estate can provide for you. But be it as an investment or simply a home for your loved ones, acquiring your very own house and lot is definitely a dream come true.

Try our Bria homes housing loan calculator.