Home Loans for starters

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Top 5 Best Home Loan Options in the Philippines


Financing your dream home into reality can be pretty expensive, especially now that the inflation in our country has also affected real estate prices. We can’t deny that buying a home in our country will take a lot of time, work, and, of course, a massive amount of money. But where will you get the right amount to buy your dream home while you’re still young? This is where housing loans enter the picture.

Minutes to read: 8 minutes

Age Bracket: 26  – 40 years old

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Housing loan offers are available in the Philippines. A pretty massive amount of offers will be shoved in front of you when you need one. Choosing the right offer that suits you best will be the challenging part. Furthermore, knowing what you’re about to grab is essential. Do you have an idea about the housing loan rates? Terms? Amounts? How about its terms and conditions? If your answer is no, this article is just for you.



What is a home loan?

A housing loan, also known as a Home Mortgage Loan, is a debt acquired by an individual who wishes to purchase or to provide funds for their dream home. The housing loan finances the following:


  • To buy a fully developed lot, a condo, a townhouse, or a residential house and lot.
  • To fund the construction or completion of your residential property
  • To fund a renovation or home improvement of your existing residential property.
  • Or to refinance an existing housing loan,


Housing loans are commonly offered by a bank institution, real estate developers, or the typical housing loan in the Philippines through Pag-IBIG Fund. This debt is common in Filipinos looking forward to buying a property. It is considered a secured debt since the property will act as a collateral asset, and the borrower can only get hold of the property’s title once the loan is fully paid off.


This type of loan usually offers a high loanable amount with lower fixed interest rates for a long repayment period that can go from three (3) to thirty (30) years. The borrower will pay monthly installments until full payment is made for the principal amount and interest. Take note that the interest rate you are paying monthly is calculated based on the amount you owe on your loan. This means that when you decide to pay extra for your principal amount, you can expect lower interest amounts that you need to pay for the following months.



What should I consider before getting a home loan?


Applying for a home loan is a giant leap to take to get what you’ve been dreaming of since other options like liquidating your savings are not always viable. Through its monthly installments and repayment convenience, a home loan is a great form of financial assistance to help you through it.  But, have you considered all the things you must consider before taking a home loan? I have listed down all the things that you should consider to help and simplify your home loan decision.


1.      Examine all available loan offers.

Since the start of wide internet access in the country, even worldwide; researching has become accessible and convenient for everyone. Many home loan options are available in the market, and choosing the right one will surely be tricky. Choosing a suitable home loan for you is best based on the down payment, interest rates, and repayment terms. Home loan offers may all look the same, but trust me, they all differ. Make sure to check each attractive offer and uncover all the nasty corners before submitting your home loan application.


2.     Affordability

Whether you can afford it or not will be the deal breaker in deciding to apply for a home loan since this will be a large contributing factor to your loan. Can you fit it into your monthly expenditure? Also, can you pay your monthly installment continuously? Can you spend a constant amount of money monthly and still be able to live comfortably within your cost of living? You must answer these questions before considering the loan option you’re interested in. Being able to afford the home loan you’re interested in is essential to maintain your credibility and avoid overdue and increased interest rates that might affect your credit score.


3.     Loan Repayment Term

Taking time to pay your home loan through monthly installments sounds chilling. But know that having a long repayment term can cause an increase in your interest rate that may require you to pay double or even triple your loan amount! Yet, the advantage here is you only have to pay a small amount on your monthly amortization. Although, if you have a stable job with a recurrently increasing income, it is best to choose a shorter repayment term as this may cause a lower interest rate that can help you to repay the loan faster. Banks also offer attractive lower interest rates to those who opt for a shorter loan term.


4.     Interest Rates

Interest rates differ for each bank. Some offer viable-rate terms, but home loans usually offer a fixed interest rate. Finding a home loan offer with viable-rate terms means your interest rates differ each month which varies from the market’s interest rate change. However, if you’re interested in a home loan that offers a fixed interest rate, this may be a good option since you will be making regular monthly payments for a given period.

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Where can I apply for a home loan?


Many housing loan options will be gathered in front of you once you need one. Finding it may be easy, but choosing where you’ll apply will be difficult. If you haven’t thought about it yet, here are some of the housing loan options in the country.


1.      Pag-IBIG Housing Loan


The Pag-IBIG Housing Loans offer up to ₱6 million loanable amount with a low fixed period interest rate. These housing loans also come with insurance such as Mortgage Redemption Insurance (MRI), Sales Redemption Insurance (SRI), or Fire and Applied Perils Insurance (FAPI), whichever is applicable. It has a maximum loan repayment term of thirty (30) years. However, your age should not exceed seventy (70).


In terms of loan interest rates, Pag-IBIG offers fixed interest rates for up to thirty (30) years. This means that you will be paying a constant monthly amortization at a given period, depending on your choice. After the fixed interest rate period, your loan will be applied to a viable rate that varies from the market’s interest rate change.


Pag-IBIG Housing Loan Fixed Interest Rate
1 year 5.750%


3 years 6.375%


5 years 6.625%


10 years 7.375%


15 years 8.000%


20 years 8.625%


25 years 9.375%


30 years 10.000%



  • You should have at least twenty-four (24) monthly membership savings
  • You should not be above 65 years old when you apply for the loan and not be more than 70 years old at the maturity of the loan
  • Legal capacity to encumber real property
  • Should have the ability to pass background checks/credit and employment/business checks of Pag-IBIG Fund.
  • Has no outstanding Pag-IBIG Short-Term Loan (STL) at the time of the application
  • Has no foreclosed, canceled, bought back due to default, or subjected due to dacion en pago Pag-IBIG Housing Loan.
  • You must update your account if you have an existing Pag-IBIG Housing Loan



  • Housing Loan Application with your recent ID photo or co-borrower (If applicable)
  • Your proof of income
  • A photocopy of one (1) valid ID of the Principal borrower and spouse, or co-borrower and spouse
  • Latest and Certified True Copy of the Transfer Certificate of the Title (TCT)
  • If condominium unit, present TCT and a certified true copy of the Condominium Certificate of Title (CCT)
  • Updated tax declaration (house and lot) and a photocopy of the Updated Real Estate Tax Receipt
  • Vicinity map or sketch map of the property
  • Additional Requirements by Loan purpose


If you wish to read more, visit Pag-IBIG Housing Loan.



2.     RCBC Home Loans


The RCBC Regular Home Loans offers a minimum loan amount of ₱1 million with a twenty percent (20%) downpayment. Funds can be used to purchase a house and lot, a vacant residential lot, and for home renovation and/or improvement. It can also be used as a multi-purpose loan for home loan refinancing. Interest rates range from 6.38% to 10.5% depending on your chosen loan repayment term, which ranges from 1 – 20 years. It also has a 1 – 20 years fixing option.



  • Age should be at least 21 years old at the time of the application
  • Age should not exceed 65 years old at the time of loan maturity
  • Must be a Filipino or a Dual Citizen
  • If the applicant is a foreigner, must be married to a Filipino Citizen
  • Must have an active mobile number and a residence/office landline
  • If employed, must be working for at least one (1) year
  • Must have a gross monthly income of at least ₱40,000
  • If the applicant is an OFW, must be working abroad for at least two (2) consecutive years.
  • If Self-employed, the business must be a profitable operation for at least two (2) years.



  • Accomplished RCBC Home Loan Application Form
  • Copy of Transfer Certificate of Title (TCT) and Tax Declaration (Land and Improvement)
  • Bill of Materials (For construction)
  • If the applicant is employed
    • Two (2) valid government-issued IDs
    • TIN
    • Utility Bill
    • Certificate of Employment (COE) or latest ITR
  • If the applicant is Self-employed
    • Audited Financial Statements
    • Business Registration with DTI
    • ITR or Bank Statements


For more information, read more at Apply for an RCBC Home Loan today



3.     BPI Housing Loan


BPI Offers one of the best housing loans in the Philippines with its newest feature, the Step Up Payplan. Step Up Payplan allows the borrowers to start with a low monthly payment in their first year as the payment amount increases gradually every year! Making everyone adjust to the monthly payment while staying within the budget. The monthly payments will only increase by around 5%-10% per year, making it affordable for everyone.


The minimum loan amount for BPI Housing Loan is ₱400,000 with a maximum loanable amount of seventy percent (70%) appraised value for houses and lots, a maximum of sixty percent (60%) appraised value for a vacant lot and residential condominiums, and up to eighty percent (80%) appraised value of house and lot that will not exceed an amount of ₱5 million, given that the principal borrower is employed and the purpose is for owner occupancy.


Loan terms can go from ten (10) years for residential lots, residential condominiums, etc., to twenty-five (25) years for houses and lots. In terms of BPI Housing loan interest rates, they also offer fixed interest rates for a given period. Refer to the table below.


Fixed Period Fixed Interest Rate
1 year 6.75%
2 years 7.00%
3 years 7.50%
4 years 7.75%
5 years 7.98%
10 years 10.25%
15 years 10.50%
20 years 12.00%



  • Must be a Filipino citizen
  • If the applicant is a foreigner, must be married to a Filipino citizen or with a resident visa
  • Must be at least 21 years old, but age should not exceed sixty-five (65) years old upon loan maturity
  • Combined household income must be at least ₱40,000



  • Housing Loan Application Form
    • Two valid government-issued IDs
    • Duly accomplished housing loan application form
  • Income Documents
    • If employed
      • Certificate of Employment (COE)
      • Latest Income Tax Return (ITR) for the last 2 years
    • If OFW
      • Certificate of Employment (COE) or contract authenticated by the Philippine Consulate
      • If seaman, Crew Contract and Exit Pass validated by Philippine Overseas Employment Administration (POEA)
      • Proof of monthly remittances
      • Notarized or Authenticated Special Power of Attorney
    • If Self-employed
      • DTI Registration
      • Income Tax Return (ITR) with statement of assets and liabilities for the last two (2) years
      • Bank statements for the last six (6) months
      • Articles of incorporation and By-Laws with SEC Registration Certificate
      • Audited Financial Statement for the last 2 years
    • If Practicing Doctor
      • Clinic Address/es and schedule
    • Collateral Documents
      • Clear copy of owner’s duplicate copy of Transfer Certificate of Title (TCT) or Condominium Certificate Title (CCT)
      • Location or vicinity map of the lot plan certified by a licensed Geodetic Engineer
      • Photocopy of Tax declaration/Tax Receipts/Tax Clearance
      • Endorsement Letter/Computation Sheet/Contract to Sell from developer stating the contract price (for accredited developer/project)


Upon submission of complete and accurate requirements, processing time of your loan application will be around two to five (2 – 5) days. If you need more information, read more at BPI Loans.



4.     PNB Housing Loan


Looking for a loan that can finance your home construction, purchase your dream home, or refinance your existing loan? PNB Housing loan can help you with that. With their housing loan offer, you can loan a minimum amount of ₱500,000 to purchase a lot. If you’re planning to purchase a house and lot, townhouse, or condominium, a minimum amount of ₱750,000 (within Metro Manila) and ₱500,000 (outside Metro Manila) can be loaned. Additionally, a maximum amount of up to seventy percent (70%) of the appraised value of the lot and up to eighty percent (80%) of the appraised value of the house and lot, townhouse, or condominium.

You will make equal monthly payments until the loan is fully paid. However, low initial payments will be available to applicants who applied for a loan of at least ₱1 million for a minimum payment term of five (5) years. The term options for a PNB Housing loan are up to ten  (10) years for lot purchase and home improvement and up to twenty-five (25) years for purchasing a house and lot, townhouse, condominium unit, or house construction. The PNB website shows that fixed interest rates are not offered for their housing loan. Meaning viable interest rates are applied to your home loan, which means that the interest rate that will be applied to your home loan will be the prevailing home loan rate at the time of your availment.



  • Must be a Filipino Citizen
  • Must be at least 21 years old, but age should not exceed 65 years old upon loan maturity
  • Must be employed or self-employed


  • Duly accomplished Housing Loan Application Form
  • Photocopies of two (2) valid government-issued IDs
  • A non-refundable appraisal fee worth ₱3,500
  • If applying with a co-maker/co-borrower/attorney-in-fact, a separate application form is needed
  • Income Documents
    • If Employed
      • Photocopy of latest Income Tax Return (ITR)
      • Certificate of Employment (COE) and Compensation
      • Alien Certificate of Registration (ACR) and Official Receipt (if resident alien)
    • If Self-employed
      • SSS/GSIS/Driver’s License/PRC License
      • Business Name (DTI) or SEC Registration
      • General Information Sheet
      • Financial Statements or Income Statements for the last three (3) years
      • Photocopy of the Income Tax Return (ITR) for the last three (3) years
      • Articles of Incorporation, By-Laws with SEC Registration Certificate and latest General Information Sheet if applicable
      • List of Trade References (Suppliers / Customers)
    • If Practice of Profession
      • If Doctor, clinic Address/es, schedule, and contact numbers
      • Bank Statements for the last six (6) months
    • If OFW
      • Photocopy of Passport
      • Certificate of Employement (COE) or Contract approved by POEA. If direct hired, must be authenticated by the Philippine Consulate
      • Proof of inward remittances through PNB or other banks
      • If Seafarer, Crew contract and Exit Pass from POEA
      • PNB prescribed Special Power of Attorney (SPA), (only if applicable)
      • If the SPA was executed and notarized abroad, it should be authenticated by the Philippine Consulate
    • Collateral Documents
      • Two (2) sets of clear photocopy of all pages of the Transfer Certificate of Title (TCT)/Original Certificate of Title (OCT) /Condominium Certificate Title (CCT)
      • Vicinity Map or location of the Lot Plan certified by a licensed Geodetic Engineer
      • Photocopy of the latest Tax Declaration / Realty Tax Receipts / Tax Clearance
      • For condominiums, Master Deed of Declaration and Restrictions
      • For Construction and Renovation Purposes:
        • Complete set of building plans duly signed by a Civil Engineer or Architect
        • Bill of Materials, Specifications, or Cost Estimates duly certified by a Civil Engineer or Architect
        • For renovation, scope of work
        • Building Permit
      • For Purchase of lot or house and lot, Deed of Absolute Sale or Contract to Sell


To know more about PNB Housing loan, read more at PNB Housing Loan.



5.     AUB Home Loan


Asia United Bank usually offers personalized services to its clients, and their home loan offer is not an exception to that! Together with their home loan, they mentioned that you will be guided by their “Personalized Services” which will be a sure advantage to applicants since you can expect that they will provide you with good service and advice on your plans.


Together with their Home Loan offer, AUB offers a two-feature interest rate cap that can protect you from rising interest rates in the future. The first feature of their Home Rate Protect is a +0.25% on interest rate after the fixing period for Home Loan with excellent payment rating. The second feature is an interest rate cap of 9% on all home loans.


The minimum loanable amount for an AUB Home loan is ₱1 million up to eighty percent (80%) of the property’s appraised value or ninety percent (90%) of the total contract price for an Accredited Developer. A flexible payment term of a maximum of ten (10) years for a vacant lot, fifteen (15) years for a condominium unit, and twenty (20) years for a House and lot or townhouse given that the age of the borrower should not exceed sixty-five (65) years old upon loan maturity. In terms of the interest rate that will be applied to your loan, AUB offers a fixed interest rate for up to five (5) years.



Fixed Period Fixed Interest Rate
1 year 6.0%
3 years 6.5%
5 years 7.0%



  • Duly filled out and signed home loan application form
  • Photocopy of two (2) valid government-issued IDs each from the principal borrower and co-borrower
  • Photocopy of Marriage Contract or CENOMAR, whichever is applicable
  • Income Requirements
    • If Employed
      • Photocopy of Certificate of Employment (COE)
      • Photocopy of the latest three (3) month payslip
      • Photocopy of latest Income Tax Return (ITR) or BIR Form 2316
    • If Self-Employed
      • Company or Business Profile
      • Photocopy of Business Registration Papers
      • Photocopy of the latest three (3) months bank statements
      • Photocopy of Audited Financial Statement for the last two (2) years
      • Photocopy of the latest Income Tax Return (ITR) for the last two (2) years
      • List of the major trade suppliers and customer with their contact details (if applicable)
    • Collateral Documents
      • Contract to sell
      • Photocopy of Title (TCT)/Condominium Certificate Title (CCT)
      • Photocopy of the Vicinity Map/ Lot Plan/ Subdivision Plan
      • Photocopy of the updated Tax Declaration, Tax Receipts, and Tax Clearance
      • For Accredited Developers, statement of account, reservation agreement/ contract to sell.


For the complete set of information regarding the AUB Home Loan, visit their website at AUB • Loan Products • Home Loans


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Final Thoughts


Given that I made this guide just for you, do not limit yourself to the options that I have given you. There may be a lot of housing loan offers out there, but be keen on finding the perfect one to finance your home. It may be difficult for you, especially if this is your first time, but you can use this guide as your reference.


A lot of financial services are available for everyone. Even if your goal is to finance your dream home, it doesn’t mean you just have to settle for home loans. Other financial products, such as personal loans, can be a great alternative, especially if you just need a small amount to finance more minor housing needs. Just do your research and look for a loan to get the right amount you’ll need.


Other financial institutions also offer home loans, so do not limit yourself to bank loan offers. See which offers the better loan amount, better repayment term, and lower interest rate. Talk with a trusted finance officer or consult a real estate professional. This way, you can be more knowledgeable about the loan you’re planning to apply for, and it helps you make the best-informed decision possible.




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