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The thought of owning a house and lot of your own is everyone’s dream, but of course we can’t just shell out a significant amount of our savings to do so. That’s why it’s best to know where and how you can finance your home. And it all starts with taking out a home loan. Home loans can be used to facilitate the purchase of a vacant lot, house and lot, townhouse unit, or condominium unit. It can even pay for the construction of your home renovation. 

To buy a home in the Philippines, we are first taught to go to Pag-IBIG. We are also told to consider financial institutions and, of course, banks. 

Banks, in particular, offer programs that make buying a home in the Philippines a whole lot easier because of flexible financing options for every budget. For this blog, Ohmyhome has gathered some of the best home loans our local banks have to offer. This should help homebuyers like you get a proper comparison of what you can expect from each loan.


Home buying Tips | Financing could be this easy!

Home Loan Terms and Amounts

Remember that when you’re applying for a home loan in the Philippines, you should first check out the loan terms. This gives you a clearer picture of how long you’re going to be paying for your house and lot or condo. In general, longer terms mean smaller monthly payments. But this does mean that you’re going to be paying for a larger total sum. 

Extended loan terms, meanwhile, are great for homebuyers who don’t have the kind of financing power for an immediate purchase. Although they expect to earn for the foreseeable future.

Loan terms and amounts vary depending on the bank’s specific qualifications and requirements. Here are some of the varying loan terms you might want to consider.

HOUSING LOAN TERMS AND AMOUNTS

BANKMaximum loan termsMinimum loan amountMaximum loan amount
Asia United Bank (AUB)20 yearsP1,000,000Maximum loan amount of up to 80% of the appraised value
Banco de Oro (BDO)10 years (Vacant Lot)P300,00070% of the appraised value
15 years (Condo Unit)P500,000
20 years (House & Lot, Townhouse, Construction)P500,00080% of the appraised value
Bank of the Philippine Islands (BPI)10 years (Vacant Lot, Residential Condominium)P400,00060% of the appraised value of the vacant lot or residential condominium
25 years (House and Lot)70% of the appraised value of house and lotor80% of the appraised value of house & lot not to exceed P5M (provided applicant is employed and purpose is for owner occupancy)
China Bank10 year (Condominium Unit)15 years (Vacant Lots)25 years (House and Lots)
China Bank Savings15 years (Condominium or Vacant Residential Lot)25 years (House and Lot, House Construction and Renovation, orPurchase of a Townhouse Unit)
China Trust Bank20 yearsP500,000P25 Million
EastWest Bank30 years
HSBC Philippines20 yearsP700,000P30 Million (Home Equity)
P50 Million (Home Loan)
Land Bank of the Philippines20 years
✓Provided combined age of principal borrower and loan term shall not exceed 65 years
P500,000For Private Applicants:The borrowing capacity of the individual borrower and his/her spouse (if applicable) shall be based on the 30% of the verified Gross Monthly Income for private applicants gross monthly income
For Government Employees:The borrowing capacity shall be based on the amount as required by GAA, after housing loan amortization
Maybank10 years (Home Equity)P500,00060% of your home’s appraised value or borrow up to P5 million (whichever is lower)
15 years (Loan Refinancing)P800,00070% of the appraised value of your house and lot, townhouse, or condominium (up to 60% for a vacant residential lot)
Borrower’s age plus the term of the loan should not be more than 65 years old once the loan matures (Home Acquisition)P800,00080% of the appraised value of your house and lot, a condo, or a townhouse (60% for vacant lots)
Metro Bank25 yearsP500,000
Philippine Bank of Communications (PBCom)20 yearsP500,000P20 Million
Philippine National Bank (PNB)10 years (Vacant Lot / Home Improvement)
20 years (House & Lot, Townhouse, Condominium Unit & House Construction)
Within Metro Manila: P750,000 (house & lot/ townhouse/ condominium), P500,000 (vacant lot)
Outside Metro Manila: P500,000 (house & lot/ townhouse/ condominium), P200,000 (vacant lot)
The maximum loanable amount shall be the lowest of:Actual Need, Paying capacity (up to 30% of gross monthly income can be used as amortization),or Up to 80% of the appraised value of the property for house & lot, townhouse & condominium,or Up to 60% of the appraised value of the property or lot.
Rizal Commercial Banking Corp. (RCBC)20 years
✓Employed borrowers must be at most 65 years old upon loan maturity
✓Self-employed borrowers must be at most 70 years old upon loan maturity
P300,000 (Home Renovation)
P1,000,000(House and Lot, Vacant Lot, Home Refinancing)
Robinsons Bank20 years (Locally Employed)
15 years (OFW and Self-employed)
Up to 90% of the  total contract price (Accredited Developers)
Up to 80%of the  appraised value (Non-Accredited Developers)
Security Bank20 yearsP1 MillionUp to 80% of the property’s appraised value
Sterling Bank of Asia25 years, with borrower’s age upon maturity not exceeding 65P500,000.00P10 Million or up to 80% of the property’s appraised value
Union Bank20 yearsP500,000
United Coconut Planters Bank20 years (Construction and Acquisition of House & Lot, Townhouses and Condominium Units)10 years (Refinancing, Multi-purpose Loans, Vacant Lots)P500,000Maximum of 70% of the appraised value for house and lot, townhouses, and condominium unitsMaximum of 60% of the appraised value for a vacant lotMaximum of 80% of the contract price for accredited developers
Veterans Bank20 yearsP375,00080% of the  appraised value of the collateral, 60% on vacant lots
These are indicative figures only and actual interest rates will be the prevailing rates during the time of loan availment.

Interest Rates

The Banko Sentral ng Pilipinas (BSP) heavily impacts home loan interest rates in the Philippines. And as of February 17, 2022, the BSP maintains its key policy interest rate of 2%. The BSP did so to encourage economic activity and empower home purchases.

Nevertheless, rates still differ from bank to bank. Fortunately, most of these institutions offer a fixed interest rate at least in the first year. This protects your loan from market instability and fluctuations.

INTEREST RATES

BANKLoan TypeInterest Rate (based on Fixing Period)
1 year2 years3 years4 years5 years10 years15 years20 years25 years30 Years
Asia United Bank (AUB)6.00%6.50%7.00%
Banco de Oro (BDO)6.75%6.75%6.75%7.25%7.25%
Bank of the Philippine Islands (BPI)6.25%6.75%7.25%9.50%10.50%12.00%
EastWest Bank5.75%6.75%7.25%7.38%8.25%9.75%9.75%9.75%
MaybankHome Equity8.75%9.50%10.75%
Loan Refinancing6.75%7.75%8.75%
Home Acquisition6.75%7.75%7.50%
Security BankRegular Home Loan6.25%6.75%7.75%
Home Equity Loan7.25%7.75%8.75%
These are indicative figures only and actual interest rates will be the prevailing rates during the time of loan availment.**For interest rates of banks not listed, the bank must be contacted directly.

*While a painstaking effort has been made to summarize the previously mentioned home loan information, these are based solely on what banks have made available on their official websites. For further detail regarding home loan terms and interest rates, requirements, and qualifications, it is best to inquire directly with the banks or their associated loan officers.

*Sources: aub.com.ph, bdo.com, bpiexpressonline.com, cbs.com.ph, chinabank.ph, ctbcbank.com.ph, eastwestbanker.com, hsbc.com.ph, landbank.com, maybank.om.ph, metrobank.com.ph, pbcom.com.ph, pnb.com.ph, rcbcsavings.com, robinsonsbank.com.ph, securitybank.com, sterlingbankasia.com, unionbankph.com, veteransbank.com.ph

If you need help with financing, get in touch with an Ohmyhome real estate agent today to get started. For more information on the best and latest property listings nationwide and how our Ohmyhome’s online ecosystem helps buyers like you, visit Ohmyhome.com or download the official Ohmyhome app


Ohmyhome was launched in the Philippines in September 2020, following the company’s establishment of a tech team in the country in 2017. Ohmyhome was originally founded in 2016, and subsequently rose in Singapore as a leading PropTech solution and licensed real estate agency.

Ohmyhome expanded into the Philippines so that Filipino home seekers can have a real estate partner that they can trust to have their best interests at heart and can be relied upon to provide exceptional services throughout the entire property journey.

Featuring thousands of properties across many of the Philippines’ major real estate brands, Ohmyhome differs from other local platforms by going the extra mile and extensively helping buyers narrow down their choices and find the property that best suits their budgets, home needs, and lifestyle preferences.

The company’s Real Estate Agents not only help in the shortlisting of options but also provide professional services through the entire purchasing process. These include assistance in property inspections, negotiations, the finalization of the Conditions of Sale, deposit collection, the submission of property documents, as well as providing buyers regular updates.

Ohmyhome helps Filipinos find their dream homes, all while making sure each real estate transaction is complete and is an efficient and enjoyable experience.

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