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Top 5 Housing Loans in the Philippines

Owning a house is every person’s dream. However, the costs are staggering. Unless you are a millionaire, there is really no way to build a house with cash.

The only solution is to get a loan. Today, we will show you the top 5 housing loans in the Philippines. You will know what the best bank for housing loans in the Philippines is. By the end of this tutorial, you should be able to decide which financial institution to contact.

What is a Housing Loan?

A housing loan is a kind of loan where you borrow money from a financial institution. The specific purpose of borrowing is to build or repair a house. The housing loan can also be used to do the following:

  • Buy a condominium unit;
  • Buy a lot;
  • Buy a house and lot that was already built;
  • Buy a house and lot that is about to be built by the realtor.

If you avail of a housing loan, the financial institutions will require you to pay at least 20% of the cost of the property. It means that you will only get a loan worth 80% of the value of the property you are buying.

So, if the property is worth ₱1 million, you have to prepare ₱200,000, and the bank will only lend you ₱800,000.

Also, the bank or financial institution will use the house as collateral. The house will not be yours legally until you have paid it in full.


  • What type of loan is a housing loan?
    The following types of housing loans are available in the Philippines: - Home Purchase Loans - Home Construction Loans - Home Improvement Loans - Home Extension Loans
  • Which bank is best for Housing Loan in the Philippines?
    In this article we give a brief overview of the conditions of the most popular Filipino banks. Explore them all and choose the best housing loan for you.
  • Is a housing loan safe?
    Yes, if you get it from a verified bank with a state license.

Types of Housing Loans 

There are many types of housing loans, and each type has a different interest rate and maximum loanable amount.

Here are the most common kinds of loans:

  • Land purchase – used for buying lots without houses; the lot could be in a residential or commercial area.
  • Home purchase – used to buy a house that is already built.
  • House construction loan in the Philippines – a loan where you get the cash and use it to build your own house; some institutions will disburse the funds to you in instalment. They will first check if the construction is ongoing, and disburse the rest of the money only if the construction is taking place.
  • Home extension – used for extending a property that is already built.
  • Home improvement loan – this is a little different than extension because this is used for repairs.

Before you get approved for any of these loans, the banks will ask you for documents to prove who you are, how much money you are earning, and whether the property you want to repair is in your name.

Housing Loan Rates and Terms

So, how much interest are you going to pay?

There is no hard and fast rule to this. Housing loan interest rates in the Philippines vary according to the banks. What you need to understand is how the loans are calculated in relation to the length of time you will pay.

Let’s say that you borrowed ₱1 million and you will pay it for 30 years with an annual interest of 6%. First, you need to divide ₱1 million by 360 months (30 years), and this is equal to ₱2,777 per month.

If the interest rate is 6% per year, you have to divide 6% by 12 months. In this equation, you get 0.005 or 0.50% of interest per month.

Now, you have to multiply ₱1 million by 0.50%. The result is ₱5,000 per month as interest. Now, you have to add ₱2,777 and ₱5,000 together, and you will get ₱7,777 as your monthly amortization.

As you can see, the bank will earn more money if you also pay the loan on longer terms. The only secret of not getting yourself in debt is to borrow a small amount and pay the loan really fast.

Who is Eligible to Apply for a Housing Loan?

Here is a list of eligibility requirements for a housing loan in the Philippines:

  • You must be a Filipino citizen;
  • You must have a source of income;
  • You must present to valid identification cards;
  • The application form;
  • Certificate of employment;
  • If employed, government documents of your business registration;
  • Income Tax Return documents;
  • If you are a professional, you must present your license.

In some banks, they require collateral. If you are buying a condominium unit, or a house from a real estate company, the property itself is the collateral.

How to Choose a Bank for a Home Improvement Loan?

How do you choose the best housing loan in the Philippines? To be able to decide, you have to understand what the banks offer. Since there are many banks in the country, we will just take a look at a few.

BPI Housing Loan 

You have to be employed, or you must have a business for at least two years before you can be eligible. The BPI housing loan rates vary, but they are between 6.25% and 12% per year. With BPI, you can get fixed terms or adjustable ones. As far as term length is concerned, you can choose between 1 to 20 years to pay off your debt.

BDO Home Loan

Next on our list is BDO. The BDO home loan rates are between 6.5% and 8% per year. However, the loan must be paid between 1 and 5 years only. Like BPI, you have to be employed for at least 2 years, or you must have a business that has been profitable for the same length of time.

To be able to get a loan from BDO, you must:

  • Submit the application form;
  • Have an Income Tax Return document or a payslip.

They will also ask you for the lot title, tax declaration, and many more.

Landbank Housing Loan

To be able to get a Landbank housing loan, you must be:

  • A Filipino citizen;
  • At least 21 years old;
  • Employed or financially capable.

Landbank offers different types of loan. Here, you can borrow money for:

  • Purchase of townhouse or condominium;
  • Detached house and lot;
  • Lot only;
  • Other residential units;
  • Construction purposes.

Landbank also offers loans for refinancing. For example, if you have borrowed money from a bank, and you can no longer pay, you can ask Landbank to pay off the existing debt to the bank, and now you owe Landbank money. In this case, the house and lot will be transferred to Landbank, and it is going to be your collateral.

UCPB Home Loan

To get a UCPB home loan, you must:

  • Fill out the application form;
  • Have an income of at least ₱40,000 per month;
  • Be a Filipino citizen.

The minimum amount of money you can loan is ₱500,000. What this means is that if you are loaning a smaller amount, you will not get approved. UCPB offers only up to 15 years of payment terms. The interest rate will be presented to you in the application form. It is currently not available on the bank’s website.

PSBank Home Loan

Our last selection is the PSBank home loan. To apply, you must:

  • Be employed or have a business;
  • Have proof of income;
  • Be a Filipino citizen.

With PSBank, you can use the money for the following:

  • Refinancing;
  • Purchase of lot or house and lot;
  • Condominium unit;
  • Any residential unit.

The interest rate for a PSBank housing loan is between 6.25% and 10.25% per year. The nice thing about the bank is that you can get a loan for as long as 25 years, with fixed mortgage interest rates.

 Pag Ibig renovation loan

There is another great option for buying a home on credit. With the help of the Pag-IBIG Fund, Filipino employees can buy homes even if they can’t save up. If you have already bought a home, you can improve it with a PagIBIG home improvement loan. The amount you can borrow from Pag-IBIG depends on your ability to pay, stable income, family composition, and actual home repair needs. On the official Pag-IBIG website, you can read more about the requirements and calculate your loan payments with a calculator based on your current salary.

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What if I Need a Loan Only for Small Renovations?

If you do not need a big amount of money, you are better off loaning from an alternative source. For the best bank housing loan Philippines, you may not also get approved if you only need a small amount.

How much money do you need?
10 000
Min: ₱ 1 000
Max: ₱ 10 000
You return: 10 000
All your data is under secure protection!

One of the best alternatives is Robocash. It is an online financial institution where you can apply for loans. Here are the benefits of using Robocash:

  • Fully online; no need to go to a facility;
  • Various loan amounts;
  • Many people are eligible;
  • Fund transfer is online to your bank account;
  • Payment of your loan is also online;
  • Low-interest rates.

What you will love about this company is that it is easy to apply. You can also get approved in as short as 24 hours.

Robocash is the best alternative for a small loan. Many banks will not approve your loan if it is too small. They want to earn big interests. Also, banks need a lot of documents proving that the seller of the property is legit. Banks also will ask you for a down payment, plus they will inspect your property and check if the loan is being used to build a house. Robocash will not do all these things.

All operations are performed online - you don't have to leave your house
In only 4 minutes you can receive up to 5000 pesos in your bank account
We don't require guarantors representation, documentation, or guarantee deposits.
The service is fully automated


A housing loan is an ultimate loan for a Filipino. Choose the best home loan in the Philippines in the list we provided you with. Remember that if you need only a small amount for repairs, you have to consider Robocash. Make sure that you understand the terms and conditions, and that the interest is something you can afford. At best, get a loan that you can pay in as short as ten years.

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Robocash Reviews

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Sean Martin D. Plantado

Author pages:
Sean Martin Plantado is the head of Customer Care Dept. and Online Sales Dept. of Robocash Finance Corp. creating articles, blogs, and other learning mediums that helps Filipinos struggling on their financial literacy. Sean also loves Cycling, Photography, Cinematography, Online gaming, Fine Arts, and dreams of becoming a Doctor of Veterinary Medicine.