6 Top Bank Housing Loan Providers in the Philippines

When it comes to financing a housing loan in the Philippines, many people automatically think of the PAG-IBIG Fund. Usually, a bank housing loan is seen as a backup option if the PAG-IBIG loan doesn't work out for various reasons.

However, opting for a bank loan to buy a house and lot Philippines isn't a bad choice, especially when time is a factor. Oftentimes, you can't afford to miss out on a great real estate opportunity and need to act quickly. Plus, banks often offer loans that are comparable to PAG-IBIG loans, with some even providing lower interest rates and loan maturity.

But, with hundreds of banks and financial institutions registered with the Bangko Sentral ng Pilipinas, choosing the right bank for a housing loan can be mentally draining. So, allow us to give you a list of what we consider the top banks for housing loans in the Philippines.

Securing a home loan from banks is a crucial step towards turning your dream of owning a house and lot into a reality. So, let us explore their interest rates, repayment terms, and additional perks to find the ideal financing solution that suits your needs.

Here is the updated list of six (6) best housing loans in the country.

1. Banco De Oro (BDO)

BDO offers competitive interest rates and flexible loan terms for housing loans in the Philippines. They also offer attractive loan-to-value ratios and allow for convenient online application and processing.

Loan Features

• Loanable amount: Minimum of P300,000 for lot only while P500,000 for house and lot or condominium unit

• Maximum loan amount: 90 percent of the house and lot property’s appraised value or 70 percent for the lot only

• Interest rates for existing clients: 6.75 percent (1-2 years), 7.50 percent (3 years), and 7.88 percent (5 years)

• Interest rates for new clients: 7 percent (1-2 years), 7.75 percent (3 years), and 8.25 percent (5 years)

• Loan term: Up to 20 years

• Quick approval time of five banking days

• Can be used for house and lot purchase, vacant lot, or condominium unit

• Can also be used for home construction, renovation, reimbursement of acquisition cost, or refinancing

   

   

2. Maybank

Maybank also offers competitive interest rates and flexible loan terms for housing loans. They provide customized financing solutions, including fixed-rate and adjustable-rate loans, with favorable loan-to-value ratios. Plus, they offer a hassle-free application process and convenient repayment options.

Maybank Home Loan Features

• Loanable amount: Minimum of P500,000

• Maximum loan amount: 90 percent of the house and lot property’s value or for lot only

• Interest rates: 6.5 percent (1-2 years), 7.25 percent (3 years), and 8 percent (5 years)

• Loan term: Up to 25 years

• Can be used for house and lot, vacant lot, or condominium unit purchase

• Can be used for home equity, home construction, or refinancing

3. Rizal Commercial Banking Corporation (RCBC)

If you prefer an RCBC home loan, you can also enjoy perks like competitive interest rates and flexible loan terms for housing loans.

Loan Features

• Loanable amount: Minimum of P300,000

• Maximum loan amount: 90 percent of the house and lot property’s value or for lot only

• Interest rates: 6.38 percent (1-2 years), 6.88 percent (3 years), and 7.38 percent (5 years)

• Loan term: Up to 25 years

• Can be used for a house and lot or vacant lot purchase, and home renovation

• Can also be served as a multi-purpose loan or used for home refinancing

4. Bank of Commerce (BOC)

Whether you’re a local employee, self-employed, or overseas worker, BOC can also give you reasonable housing loan rates, loan terms, and repayment options. 

Loan Features

• Loanable amount: Minimum of P500,000

• Maximum loan amount: 90 percent of the house and lot property’s appraised value or for lot only

• Interest rates: 7 percent (1-2 years), 7.5 percent (3 years), and 7.75 percent (5 years)

• Loan tenure: Up to 20 years

• Purchase of house and lot, townhouse, or condo unit

• Construction of your dream house on a lot you already owned

• Major repair, home improvement, or expansion of an existing house

• Refinancing or take-out of an existing housing loan

5. Unionbank of the Philippines (UBP)

Meanwhile, UBP offers various loan options, including fixed-rate and adjustable-rate loans, allowing borrowers to choose what suits them best.

Unionbank Housing Loan Features

• Loanable amount: Minimum of P500,000

• Maximum loan amount: 90 percent of the house and lot property’s value or for lot only

• Interest rate: 9.50 percent (1-5 years)

• Loan term: Up to 25 years

• For purchasing of a house and lot property or condo unit, house construction, lot purchase, home refinancing, renovation or expansion, and reimbursement.

   

   

6. AllBank

AllBank's housing loans also come with easy application processes and personalized customer service.

Loan Features

• Maximum loan amount: 90 percent of the house and lot property’s value or for lot only

• Interest rates: 6.88 percent (3 years) and 7.88 percent (5 years)

• Purchase or construct your home, renovation of your existing house, refinancing your existing mortgage, or just simply for additional investment

• For more details about AllBank’s home loan, you can contact them via phone at +63 2 8255-2265 or email: [email protected] / [email protected]. You can also visit their office at 2/F AllBank Building, EDSA corner Cornell Street, Barangay Wack Wack, Mandaluyong City, Philippines.

5 Factors to Consider in Choosing a Home Loan in the Philippines

Remember that the following details depend on the area or location of your accredited bank. Other factors you must consider are the following:

Evaluate your financial standing.

Assess your legitimate and profitable business, audited financial statements, and minimum gross monthly income to determine your affordability and eligibility for home loans, especially when it comes to monthly payments.

Research loan options.

Explore different financial institutions, such as Security Bank housing loan, Metrobank, and China Bank, and compare their housing loan offerings, including interest rates, loan tenure, and loan maturity earning. Utilize tools like the housing loan calculator to estimate monthly payments and choose a loan that fits your budget.

Prepare necessary documents.

Gather income documents such as the latest income tax return, bank statements, and audited financial statements. For employed applicants, provide proof of employment, like the DTI business registration certificate or community tax certificate. Self-employed individuals should submit their business registration and financial statements indicating combined monthly income if necessary.

Consider loan terms and conditions.

Evaluate loan features like the minimum loan amount, loan-to-value ratio, fixed interest rate, and loan maturity. Assess the property's appraised value and net selling price to determine the down payment required. Ensure that the loan tenure aligns with your financial goals.

Seek professional advice.

Consult China Bank Insurance Brokers or similar experts to understand the terms, conditions, and credit findings related to housing loans. Seek assistance from a reputable financial institution like Security Bank to guide you through the loan application and approval process.

Fortunately, all these banks mentioned are accredited by Lumina Homes. Thus, if you are looking for affordable house and lot for sale packages, we can give you the best housing loan options that suits your need. Besides 50 residential locations nationwide, we are currently expanding our community to other parts of the country. 

You can check our property listings page for our affordable house and lot properties or visit the Lumina admin office near your area.