Applying for a Housing Loan? Consider These Best Banks for Financing Your Home

Moneymax
·11 min read
best banks for a housing loan
best banks for a housing loan

The first thing that usually comes to mind when financing a home purchase is the Pag-IBIG Fund. Banks often come as an alternative in case the first plan doesn’t push through.

But a home loan from a bank is a good choice, especially if you want your application to be quick and don’t want to let go of a good real estate deal. Also, banks offer competitive rates, some of which are even lower than Pag-IBIG’s interest rates.

But with hundreds of banks and financial institutions listed with the Bangko Sentral ng Pilipinas,[1] choosing one is surely overwhelming. With that, we’ve come up with a list of the best banks for a housing loan.

6 Best Banks for a Housing Loan in the Philippines

Let the details below help you find out which banks offer the home loan that suits your lifestyle and goals.

1. RCBC

RCBC offers the lowest minimum loan amount on this list. This is particularly useful if you plan to borrow just a fraction of the home’s price tag and repay the loan as quickly as possible.

RCBC Home Loan Features

  • Minimum loan amount: PHP 300,000

  • Interest rate: 6.38% to 10.5% depending on the term

  • Loan term: Up to 20 years

  • Fixing option of one to 20 years

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

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

Who Can Apply for an RCBC Home Loan?

  • Filipino or dual citizen

  • If a foreigner, the applicant must be married to a Filipino citizen.

  • At least 21 years old upon loan application

  • Up to 65 years old upon loan maturity (70 years old for self-employed applicants)

  • Must have a mobile number and a residence or office landline

  • Minimum employment tenure of one year and minimum gross monthly income of PHP 40,000

  • If an OFW, the applicant must have worked abroad for at least two consecutive years

  • If self-employed, the business must be profitable for the last two years

RCBC Home Loan Requirements

  • Accomplished RCBC Home Loan application form

  • Two government-issued IDs

  • Income documents for employed applicants:

    • Certificate of Employment

    • Latest Income Tax Return (ITR)

  • Income documents for self-employed applicants:

    • DTI Business Registration Certificate

    • Audited financial statements

    • ITR

    • Bank statements

See also: Home Renovation 101: How to Renovate Your Home on a Budget

2. UnionBank

One of the best banks for a housing loan in the Philippines is UnionBank, which offers flexibility in terms of the amount you can borrow and the down payment you can make.

It’s also easy to get a home loan from UnionBank with its wide range of accredited real estate developers. So if you’ll buy from any of its accredited developers like Avida, Ayala, Camella, Filinvest, Megaworld, or SMDC, you can apply for a housing loan (as long as you satisfy the bank’s other requirements).

UnionBank Home Loan Features

  • Minimum loan amount PHP 500,000

  • Maximum loan amount: 80% of the property’s contract price

  • Interest rates: 8% to 11%

  • Loan term: One to 20 years

  • Allows 10% to 99% down payment

  • Can be used for purchase of lot, house and lot, or condominium, house construction, refinancing, or renovation

  • Quick approval time

Who Can Apply for a UnionBank Home Loan?

  • 21 to 65 years old but not exceeding age 70 upon loan maturity

  • Filipino or former Filipino citizen

  • Employees with permanent status

  • Self-employed individuals whose business has been operating profitably for at least two years

  • OFWs

UnionBank Home Loan Requirements

  • Accomplished Unionbank Home Loan application form

  • Valid ID (SSS/GSIS/TIN ID)

  • Marriage contract (if married)

  • Latest income documents for employed applicants:

    • Certificate of Employment with salary details

    • Payslips for the last three months

  • Latest income documents for self-employed applicants:

    • DTI or SEC Business Registration Certificate

    • Financial statements

    • Bank statements for the last six months

    • ITR

    • List of customers or suppliers with contact information

  • Additional documents for OFWs:

    • Valid passport with entry and exit stamps

    • Original consularized Special Power of Attorney

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3. Security Bank

The Security Bank home loan was named the Home Loan Product of the Year in 2019 at the Asian Banking and Finance’s Wholesale and Retail Banking Awards.[2] This is a strong testament to the bank’s high-quality loans and services.

Security Bank Home Loan Features

  • Minimum loan amount: PHP 1 million

  • Maximum loan amount: 80% of the property’s appraised value

  • Interest rates:

    • 6.25% fixed for one to three years

    • 6.75% fixed for five years

    • 7.75% fixed for 10 years

  • Loan term: Up to 20 years

  • Quick approval time of five banking days

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

  • Can also be used for home construction, renovation, or refinancing

Who Can Apply for a Security Bank Home Loan?

  • At least 21 years old but not more than 65 years old upon loan maturity

  • Earning a combined monthly income of PHP 50,000

  • Continuous employment for at least two years

  • For self-employed: Must be operating a legitimate and profitable business for the last three years

Security Bank Home Loan Requirements

  • Accomplished loan application form

  • A clear copy of one valid ID with picture (same requirement for spouse or co-borrower)

  • For employed applicants – Any of the following latest income documents:

    • Certificate of Employment and Compensation

    • ITR

    • Payslips for the last three months

    • Bank statements for the last three months

  • For self-employed applicants:

    • ITR

    • Any of these income documents: Audited financial statements for one year, bank statements for the last three months, or rental contracts

  • Mortgage Redemption Insurance (MRI) application form

  • Special Power of Attorney (for OFWs only)

4. AUB

The bank describes its home loan services as “personalized,” which means you can expect it to provide you sound advice regarding your plans. New home buyers will certainly benefit from this service.

On top of that, the bank offers an interest rate cap on its home loan, which may protect you from the rising interest rates in the future.

AUB Preferred Home Loan Features

  • Minimum loan amount: PHP 1,000,000

  • Maximum loan amount: Up to 80% of the appraised property value

  • Interest rates:

    • 6% fixed for one year

    • 5% fixed for three years

    • 7% fixed for five years

  • Loan term: Up to 20 years

  • Easy repayment through auto-debit arrangement

  • Home Rate Protect that puts an interest rate cap of 9% on home loans

AUB Preferred Home Loan Requirements

  • Accomplished AUB Preferred Home Loan application form

  • Photocopy of two valid IDs each from the principal borrower and co-borrower

  • Photocopy of Marriage Contract or CENOMAR (whichever is applicable)

  • Photocopy of income documents for employed applicants:

    • Certificate of Employment

    • Payslips for the last three months

    • Latest ITR/BIR form 2316

  • Income documents for self-employed applicants:

    • Photocopy of business registration documents (SEC Registration/Articles of Incorporation/By-laws/GIS or DTI Certificates/Mayor’s Permit/Business Permit

    • Photocopy of latest bank statements for the last three months

    • Photocopy of audited financial statements for the last two years

    • Photocopy of ITR for the last two years

    • List of major trade suppliers and customers with contact details (if applicable)

5. BPI Family Savings Bank

BPI is one of the best banks for a housing loan in the Philippines, so the list won’t be complete without it. The bank also offers some of the lowest minimum loan amounts.

BPI Family Savings Bank Housing Loan Features

  • Minimum loan amount: PHP 400,000

  • Maximum loan amount:

    • 70% of the appraised value of house and lot

    • 60% of the appraised value of a vacant lot or residential condominium

    • up to 80% of the appraised value of house and lot (as long as the value doesn’t exceed PHP 5 million)

  • Interest rates:

    • 25% fixed for one or two year/s

    • 75% fixed for three years

    • 25% fixed for four or five years

    • 50% fixed for ten or 15 years

    • 12% fixed for 20 years

  • Loan terms:

    • Up to 25 years for house and lot

    • Up to 10 years for the following: vacant lot, residential condominium, business loan, refinancing, or multi-purpose loans

  • Quick processing (You can expect a reply within five working days after submission of complete requirements.)

  • Good for applicants with conservative earnings and buying patterns

Who Can Apply for a BPI Family Savings Bank Housing Loan?

  • Filipino citizen

  • Must be of legal age but not more than 65 years old upon loan maturity

  • Foreigner married to a Filipino citizen (subject to documentary requirements)

  • Foreigner with resident visa (subject to documentary requirements)

BPI Family Savings Bank Housing Loan Requirements

  • Accomplished BPI Family Savings Bank Housing Loan application form

  • Two valid government-issued IDs, each with photo and signature

  • If married, both spouses will sign the application form.

  • If with co-borrower or co-mortgagor, a separate application form will need to be filled out.

Read more: BPI Housing Loan Application Guide for New Borrowers

6. China Bank

Other than flexible repayment terms and many purposes of its home loan, China Bank makes a great pick for first-time home buyers.

China Bank HomePlus Loan Features

  • Minimum loan amount: PHP 500,000

  • Interest rate: 5.7%

  • Loan terms:

    • Up to 10 years for condominium units

    • Up to 15 years for vacant lots

    • Up to 25 years for a house and lot

  • Quick processing

  • Can be used for the purchase of different real estate properties: condominium units, house and lot, or vacant lots

  • Can also be used for house construction, refinancing, and reimbursement

  • Low insurance premiums (as the bank uses its subsidiary, China Bank Insurance Brokers, Inc.)

  • Easy repayment via automatic debit arrangement

  • No hidden charges

Who Can Apply for a China Bank HomePlus Loan?

  • Filipino, of legal age but not more than 65 years old upon loan maturity

  • With a steady and verifiable source of income

  • Has a supervisory/managerial position at a reputable company for at least three years

  • Minimum gross monthly income:

    • PHP 50,000 (Metro Manila and Metro Cebu)

    • PHP 35,000 (other provinces)

  • No adverse records or credit findings, such as court cases, bouncing checks, unpaid loans, canceled credit cards, among others

China Bank HomePlus Loan Requirements

  • Accomplished China Bank HomePlus Loan application form

  • Valid IDs (TIN, Community Tax Certificate, passport, company ID, driver’s license)

  • Marriage contract (if married)

  • Bio-data/Resume

  • Deposit Statements of Accounts for the last six months

  • For employed applicants:

    • ITR

    • Certificate of Employment stating the length of service and monthly compensation package

  • For self-employed applicants:

    • Audited financial statements and ITR for the last three years (BIR-stamped)

    • Certificate of Registration of Business Name

    • Business profile

    • Complete list of suppliers and clients

Related articles:

Note: For the complete list of requirements, visit your preferred bank’s website or contact its customer service department.

How to Make Your Home Loan Application Much Easier

Finding the best bank for a housing loan in the Philippines is now made much easier with the services of a mortgage broker. And in this case, we recommend Nook, the first and only mortgage broker in the Philippines.[3]

So how does Nook work? Essentially, Nook is the middleman between you and the bank. Its team of experts will help you find the best bank for a home loan for you. What’s great about Nook is that all the banks listed above are their partners, which means you may get a chance to find a loan that will perfectly match your financial capability, risk tolerance, and goals.

And Nook’s services are free—no need to pay for any processing or application fee! You can also get pre-qualified within three minutes, as everything is done online. Want to give it a try? Visit www.nook.com.ph today!

Read more:

Final Thoughts

There are hundreds of banks out there, but not all of them have the right loan program for you. The process of finding the best bank for a home loan in the Philippines may even feel like looking for a needle in a haystack. But it shouldn’t be a problem, especially now that you know the best banks for a housing loan and that you can use the services of a mortgage broker like Nook for an easier home loan application.

This article was created in partnership with Nook Philippines. While we are financially compensated for this collaboration, we ensure to maintain our editorial integrity to provide you with the best recommendations that can help you make smarter financial decisions.

Sources:

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