Your Simple Guide to Housing Loans in the Philippines

Having one’s own home is a significant milestone in the life of every Filipino. However, only a few people can afford to buy a home outright. Here’s a hint: one of the advantages of getting a home loan is that it can help you get there faster. Learn the basics of a housing loan in the Philippines that could help you acquire a home of your own.

What is a Housing or Home Loan?

Making such a big decision can be intimidating, especially for first-time homebuyers, but we’re here to help. Furthermore, even if you do not need a home loan because you have enough money to pay for the house in full, you may still consider doing so in the future.

 A housing loan is a type of financing that provides funds for the following purposes:

  • Purchase of a fully developed lot.
  • Purchase of a single-family home and lot, a townhouse, or a condominium unit.
  • Building or completing a residential unit on a lot you already own.
  • Existing residential property improvement or renovation.
  • Refinancing an existing mortgage.

Furthermore, housing loans in the Philippines typically provide a large loan amount as well as competitive interest rates for longer repayment periods.

What should you know before applying for a housing loan in the Philippines?

Before you consider applying for a housing loan, you should understand the components of your mortgage. Listed below are the four most important factors to consider before purchasing one.

1. Payment is made monthly

Your monthly payment should be appropriate for your budget, depending on the loan amount approved by the institution you’ve applied for a home loan in. To accomplish this, you must have an income that is at least three times your monthly payment.

Read Also: How to Get a Pre-Approved Bank Housing Loan?

2. A deposit is required

This is the amount you pay upfront when you buy a house. Your down payment has an impact on the house price you can afford.

3. Loan term

The total interest paid is proportional to the length of the loan. The longer the term, the more interest is paid, and vice versa.

4. Interest rate type

There are fixed-rate and variable-rate terms available. For those who prefer consistent monthly payments, the former is a good option. The latter has variable interest rates that fluctuate with market interest rates.

Read Also: Basic Things You Should Know About Bank Interest Rates

Who Can Apply for a Housing Loan in the Philippines?

 The following are the general eligibility requirements for a housing loan application:

  1. When the loan matures, you must be between the ages of 21 and 65.
  2. A Filipino National/Resident,
  3. If you are an OFW, you must provide a legal power of attorney as well as a contract or certificate of employment (COE) approved by the Philippine Overseas Employment Administration (POEA).
  4. You must meet VISA requirements and submit your Alien Certificate of Registration if you are a foreigner.

How to Choose Which Housing Loan You Should Apply for?

When deciding which loan is best for you, make sure you understand the type of loan you’re dealing with, its terms, and what you’re expected to do. It’s critical to stay informed about the state of your finances if you want to be a responsible borrower and secure a stable and successful financial future. 

 If you want to buy your dream home, you should consider applying for a housing loan. A housing loan is a type of financial aid in which money is borrowed from banks and government agencies at a fixed interest rate for a set period of time. Home loans are typically used to buy, build, renovate, extend, or refinance an existing housing loan with a loan balance.

What Types of Housing Loan Can You Apply for in the Philippines?

There are two types of housing loans: conventional and flexible. You can select either of these two depending on the terms you prefer.

1. Conventional Loan

A conventional home loan requires you to make fixed payments over a set period of time. This is ideal if you want a predictable payment scheme and want to plan your finances ahead of time.

2. Flexible Loan

This type of home loan is typically provided by banks. Depending on how much you deposit, you can control the interest rate on your flexible home loan. You may also begin principal repayment at any time.

4 Options Where You can Apply for a Home Loan:

1. Bank Finance

Most banks in the country provide bank financing for home loans. However, the application process can be rigorous, and bank financing requirements can be extensive, with loan amounts and terms varying from bank to bank.

Read Also: Understanding bank home loans: How do they work?

2. Pag-IBIG Home Loan

You can get a Pag-IBIG housing loan if you are a Pag-IBIG member. This is open to paid minimum wage, self-employed, and OFW workers up to the age of 65. It also allows you to borrow up to ₱6 million for the purchase of a residential lot, house, or condominium.

3. In-House Financing

Real estate developers can provide you with a housing loan. Typically, a 10% to 30% down payment and proof of income are the only things required. This loan option, however, has a shorter term of up to five years.

4. SSS Housing Loan

Another government agency that provides housing loans is the Social Security Administration or SSS. All WOM, Workers’ Organization Members, and private sector workers registered with the DOLE, the Securities and Exchange Commission, or the Cooperative Development Authority are eligible for SSS housing loans. A borrower must be under the age of 60 at the time of application, have at least 36 months of premium contributions, or have made 24 contributions prior to the loan application, to be eligible for a housing loan.

Pag-IBIG vs. Bank Housing Loans

Pag-IBIG Housing Loan vs. Bank Housing Loan are the two most popular types of Housing loans in the Philippines under the financing scheme, but which is better?


Pag-IBIG housing loans are provided by the Pag-IBIG fund, which allows borrowers to finance up to P6 million at low-interest rates and with long repayment terms. Your loan amount will be determined by your need, ability to pay, and loan-to-appraisal value ratio.


  • You must be an active member with at least 24 months of contributions.
  • The applicant must be no older than 65 at the time of application and no older than 70 at the time of maturity.
  • Has the legal authority to buy and sell real estate.
  • Has not had a Pag-IBIG housing loan foreclosed, canceled, repaid, or surrendered.
  • Payment should have been updated for an existing Pag-IBIG Housing account, STL, or Short Term Loan.


A Pag-IBIG Housing loan has a one-year minimum loan term and a maximum loan term of 30 years.

Bank Housing Loan

There are numerous banks to choose from when it comes to home loan financing. Although the Bangko Sentral ng Pilipinas regulates bank finance, one of the best places to start when deciding where to get a bank loan is to conduct research on various financial institutions that interest you or that you already use. Use a tool like a home loan calculator to get an idea of how much you could finance with a bank. Interest rates and loan terms vary by bank. In general, here’s what to expect from a bank.

To begin, a bank loan can be used to purchase a lot, a townhouse, a condo unit, a vacant lot, or a residential house and lot. A bank home loan can also be used to complete home construction and renovations, as well as to refinance your current mortgage. The amount you can borrow from a bank for a home loan varies depending on your ability to repay. The terms of repayment differ depending on the bank from which you obtain your home loan.

Available Affordable House and Lots by Bria Homes

Meanwhile, if you want to achieve your dream house and lot but your savings is not enough, the good news is, BRIA Homes is offering housing loans through bank loans.

BRIA Homes is primed to bring quality and affordable house and lot packages and condominium units closer to ordinary Filipino families. 

For more details and inquires, just visit BRIA Homes website and Like and follow “Bria Homes, Inc.” On Facebook, Twitter, Instagram, Youtube and Pinterest.

Written by Alfred Alaba