Braulio Giron Jr

Braulio Giron Jr

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Buying a new home, or any other type of real estate for that matter, is a significant expense, and it is for this reason that many banks include home loans in their line of financial products. However, as much as home loans are almost always needed to make a home purchase, it is understandable how it is assumed that it only exists for that purpose.

Be that as it may, home loans in the Philippines have actually evolved throughout the years, and the following are all the ways you can look to it to establish the home of your dreams.

First, what in detail is a home loan?

A home loan is a term loan facility paid via monthly amortizations, secured by a registered first real estate mortgage. The home the loan is to be used on must be one that is fully titled and registered under the name of the mortgagor or borrower, and is free from liens and constraints and has no legal impediment as to the validity of the title.

Borrowing for home purchase

As previously mentioned, the main function of home loans is to assist borrowers with the acquisition of homes for sale. In terms of what can be acquired, these vary depending on the home loan provider, but typically include:

  • Residential house and lot
  • Townhouse
  • Duplex
  • Condominium, and
  • Vacant lot

House construction

Speaking of vacant lots, in the event that you already own this type of property but have yet to build a house on it, home loans can also be a means to fund the construction. While this isn’t the most typical manner in which people use home loans, it is a readily available option with many banks.

Along with construction from the ground up, a home loan can also be utilized for renovation and home improvement purposes, provided the work that needs to be done is extensive and the cost of it would meet minimum loan requirements.

Refinancing/take-out of an existing home loan

One purpose of home loans not widely used in the Philippines, but is available with most banks, is for payment of an existing home loan. While it can be perplexing to take out a loan just to pay another loan (it’s seemingly easier to just pay the existing one), there are actually benefits to refinancing.

Among these is the opportunity to fulfill an existing loan with not-so-favorable interest rates and/or payment terms by paying it (in essence, replacing it) with a loan that has interest or terms that is more favorable or simply a better fit with one’s current financial circumstances.

Reimbursement of cost of purchase or construction

Arguably one of the least applied for utilizations of a home loan is for the reimbursement of funds used to buy or build a new home. This is understandable given it has already been paid for, so the thinking would be to why borrow. However, real estate is a significant expense, and not taking out a loan often leaves a significant dent on life savings and foreseeable finances.

In addition, home loans for reimbursement is an effective way to actually push through with the purchase of a home that is being sold abruptly or in a rush, and the seller may not be able to entertain buyers who’ll have to go through the typical time spent on getting approved for a home loan.

Similar to finding the home that best meets your needs and preferences, finding the home loan that best helps you with the Philippines homeownership process. Fortunately, whether it is buying or building a home, financial institutions offer home loan solutions that can be used for any of the previously mentioned purposes.

For more information on Philippine banks and the home loans they offer, or have your property queries answered, feel free to contact Ohmyhome for expert real estate assistance. Visit the Ohmyhome property investments page to view the best and latest homes for sale in the Philippines, or download the Ohmyhome app for convenient access to new properly listings and related real estate services.


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 the 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.

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