Home Loan Amount and Interest Rate in 2021

One consideration when buying a house and lot for sale is to either pay it in cash or avail of a housing or home loan.

A housing loan is also usually referred to as a mortgage. A mortgage is a home loan given by financial institutions such as a bank, mortgage company, or government institutions for real estate or residence – primary, secondary, or investment residence.

In the Philippines, you can avail of a mortgage through Pag-Ibig, Bank Financing, Inhouse or Owner Financing, and SSS Housing Loan.

Pag-IBIG housing loan is being offered by the government agency Home Development Mutual Fund (HDMF) or commonly known as Pag-IBIG Fund. Pag-IBIG members that are salaried, self-employed, and OFW with ages 65 and below can avail their housing loan. Another government agency that offers a mortgage is SSS. SSS housing loan is open to all their members under WOM, Workers’ Organization Members, or workers in the private sector registered under DOLE, the Securities and Exchange Commission, or the Cooperative Development Authority. To avail of a housing loan, the borrower should not be more than 60 years old at the time of application, has at least 36 months premium contribution, or has 24 contributions before the loan application.

An in-house financing or owner financing is when a borrowers get a mortgage from the developer of the property. Bank financing, on the other hand, is being offered by almost all banks in the country. The amount that can be borrowed, terms, and interest may vary from one bank to another.

A home mortgage can either be a fixed or a variable interest rate. In a fixed-rate mortgage, the interest rate and the periodical payment are the same for each period. A variable interest rate will have various monthly payments. The interest rate moves with the market during your loan’s entire term.

In the Philippines, there are two options for a mortgage – public and private. The public is through government agencies such as Pag-Ibig and SSS, while private is through banks like BDO, Security Bank, and China Savings Bank.

Interest rates of mortgage differ from bank to bank and government institution, period, and term.

HOW DOES MORTGAGE WORKS?

In home mortgage, a borrower or owner of the property transfer or lend the title of the property to either bank, government institution or developer, on the condition that the title will be transferred back to the owner on the agreed length of time and when the final loan and other terms of the mortgage are paid and met. If the borrower wasn’t able to pay the mortgage based on the terms that they agreed upon, the lender has the right to seize the real estate from the homeowner and sell it on the open market.

In a typical mortgage in the Philippines, the borrower makes monthly payments for the loan tenure until he fully paid both the principal of the loan and the interest. In the early years of the mortgage, most monthly payments will be allocated to pay the interest of the loan, but as years pass by the larger proportion of the payments will be allocated to the principal.

HOUSING LOAN TERMS

Having an idea about the terms used in housing loans will make you further understand the loan terms given by different institutions. That way you can choose which one will fit your budget and needs.

• Principal – the amount you assumed and must pay back.
• Interest Rate- also known as mortgage rate refers to the amount charged by a lender to a borrower for any form of debt.
• Margin of Finance – is also known as the loan-to-value ratio.
• Early Termination Penalty – a fee charged when a person wants to terminate the term or arrangement.
• Down Payment – This is the initial payment made when purchasing a home. Down Payment is required for approval of the loan and it can also influence the monthly mortgage.
• Prepayment – prepayment is when you fully or partially your loan before the agreed period.
• Refinancing – refinancing happens when the borrower pays an old loan and replaces it with a new one.
• Foreclosure – is a legal process wherein the lender ventures to get the balance of a loan from a borrower who was not able to make payments to the lender by forcing the sale of the asset used as the collateral for the loan.
• Loan Term- the length of time or period wherein the borrower can pay the housing loan.

ELIGIBILITY

To avail of a home loan, the borrower should meet some basic requirements such as:

Age

Most banks require borrowers to be at least 21 years old and the maximum would age would either be 65 or 70 years old upon the end of the loan term.

Employment

All banks require borrowers to be employed for at least 2 years at the time of their application for a home loan. For borrowers who are self-employed or run a business, some banks require at least 2 years of having a business or self-employed.

Earnings

Banks require that borrowers and their co-borrowers are earning a specified amount each month to ensure the borrower’s capacity to pay.

Citizenship

Filipino citizens are all eligible to borrow home loans from banks.

HOME LOAN AND INTEREST RATES OFFER IN THE PHILIPPINES

Banks and financial institutions offer a variety of interest rates depending on various factors such as your credit worthiness, down payment percentage or equity share you intend to contribute etcetera. Interest rate also differs according how long it would take before repayment begins and so forth.

PAG-IBIG FUND

Maximum loan terms- 30 years

Maximum loan amount- up to Php 6,000,000 loans at low-interest rates with long repayment terms.

Interest Rate based on fixing period- 1 year -5.75%

3 year -6.25%

5 years- 6.50%

10 years- 7.25%

15 years- 7.875%

20 years- 8.50%

25 years- 9.125%

30 years- 9.875%

**Affordable Housing Loan for Minimum-Wage Earners remains at 3% interest

PAG-Ibig home loan Calculator

The PAG-ibig home loan calculator is a great tool to help you understand how much house you can afford. It takes into account the monthly payments, down payment amount, and interest rate on your mortgage so that it determines how long it will take for those monthly payments to pay off the total debt of your property.

ASIA UNITED BANK (AUB)

Maximum loan terms- 20 years

Minimum loan amount – P1,000,000

Maximum loan amount- up to 80% of the appraised value

Interest Rate based on fixing period– 1 year -6.00%

3 years- 6.50%

5 years- 7.00%

BANCO DE ORO (BDO)

VACANT LOT

Maximum loan terms –10 years

Minimum loan amount- P300,000

Maximum loan amount- 70% of the appraised value

CONDO UNIT

Maximum loan terms- 15 years

Minimum loan amount- P500,000

Maximum loan amount-70% of the appraised value

HOUSE AND LOT, TOWNHOUSE and CONSTRUCTION

Maximum loan terms – 20 years

Minimum loan amount- P500,000

Maximum loan amount- 80% of the appraised value

Interest Rate based on fixing period– 1 year -6.75%

        2 years- 6.75%

        3 years-6.75%

       4 years- 7.25%

       5 years- 7.25%

BANK OF THE PHILIPPINE ISLANDS (BPI)

Vacant Lot, Residential Condominium

Maximum loan terms- 10 years

Minimum loan amount- P400,000

Maximum loan amount- 60% of the appraised value of a vacant lot or residential condominium

House and Lot

Maximum loan terms- 25 years

Minimum loan amount- P400,000

Maximum loan amount- 70% of the appraised value of house and lot

or 80% of the appraised value of house & lot not to exceed P5,000,000

Interest Rate based on fixing period-     1 year -6.25%

2 years- 6.25%

3 years-6.75%

4 years- 7.25%

5 years- 7.25%

10 years- 9.50%

15 years- 10.50%

20 years- 12.00%

CHINA BANK

Home Plus

Maximum loan terms- 10 year (Condominium Unit)

15 years (Vacant Lots)

25 years (House and Lots)

Minimum loan amount- P500,000

Maximum loan amount- up to 80% of appraised value of property

Interest Rate based on fixing period- 1 year -5.75%

         2 years- 6.00%

         3 years-6.00%

        10 years- 8.50%

CHINA BANK SAVINGS

Maximum loan terms-15 years (Condominium or Vacant Residential Lot)

25 years (House and Lot, House Construction and

Renovation, or Purchase of a Townhouse Unit)

CHINA TRUST BANK

Maximum loan terms- 20 years

Minimum loan amount- P500,000

Maximum loan amount- P25 Million

Interest Rate based on fixing period-  1 year -5.75%

2 years- 7.00%

3 years-7.00%

5 years- 7.60%

EASTWEST BANK

Maximum loan terms- 30 years

Minimum loan amount P500,000.00

Maximum loan amount P5,000,000.00

Interest Rate based on fixing period-  1 year -5.75%

2 years- 6.75%

3 years-6.75%

4 years- 7.25%

5 years- 7.25%

10 years- 7.38%

15 years- 8.25%

20 years- 9.75%

25 years- 9.75%

30 years- 9.75%

HSBC PHILIPPINES

Home Equity

Maximum loan terms- 20 years

Minimum loan amount- P700,000

Maximum loan amount- P30 Million

Home Loan

Maximum loan terms-20 years

Minimum loan amount – P700,000

Maximum loan amount- P50 Million

Interest Rate based on fixing period-  1 year- 4.99%

2 years- 6.00%

3 years-6.25%

5 years- 6.49%

LAND BANK OF THE PHILIPPINES

For private applicants

Maximum loan terms-20 years

Minimum loan amount- P500,000

Maximum loan amount- The borrowing capacity of the individual borrower and his/her spouse or co-borrowers shall be based on the 30% of the verified Gross Monthly Income pf gross monthly income.

For Government Employees

Maximum loan terms-20 years

Minimum loan amount- P500,000

Maximum loan amount- Shall be based on the amount as required by GAA, after housing loan amortization.

MAYBANK

Home Equity

Maximum loan terms- 10 years

Minimum loan amount- P500,000

Maximum loan amount- 60% of your home’s appraised value or borrow up to P5 million or whichever is lower.

Interest Rate based on fixing period-  1 year- 8.75%

3 years- 9.50%

5 years- 10.75%

Loan Refinancing

Maximum loan terms-15 years

Minimum loan amount-P800,000

Maximum loan amount-70% of the appraised value of the house and lot, townhouse, or condominium and up to 60% for a vacant residential lot.

Interest Rate based on fixing period-  1 year- 6.75%

3 years- 7.75%

5 years- 8.75%

Home Acquisition

Maximum loan terms- Borrower’s age plus the term of the loan should not be more than 65 years old once the loan matures.

Minimum loan amount-P800,000

Maximum loan amount-80% of the appraised value of your house and lot, a condo, or a townhouse.

Interest Rate based on fixing period-  1 year- 6.75%

3 years- 7.75%

5 years- 7.50%

METROBANK

Maximum loan terms- 25 years

Minimum loan amount- P500,000

Maximum loan amount- P100,000,000.00

Interest Rate based on fixing period-  1 year- 5.50%

2 years- 6.20%

3 years-6.25%

5 years- 6.88%

10 years- 8.50%

PHILIPPINE BANK OF COMMUNICATIONS (PBCOM)

Maximum loan terms- 20 years

Minimum loan amount- P500,000

Maximum loan amount- P20 Million

Interest Rate based on fixing period for depositor- 1 year- 7.50%

3 years- 8.50%

Interest Rate based on fixing period for non-depositor- 3 year- 9.50%

PHILIPPINE NATIONAL BANK (PNB)

Vacant Lot / Home Improvement

Maximum loan terms- 10 years

Minimum loan amount- 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)

Maximum loan amount- shall be the lowest of the three options:

• Actual Need, paying capacity (up to 30% of gross monthly income can be used as amortization)
• Up to 80% of the appraised value of the property for house & lot, townhouse & condominium,
• Up to 60% of the appraised value of the property or lot.

House & Lot, Townhouse, Condominium Unit & House Construction

Maximum loan terms – 20 years

Minimum loan amount- 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)

Maximum loan amount- shall be the lowest of the three options:

• Actual Need, paying capacity (up to 30% of gross monthly income can be used as amortization)
• Up to 80% of the appraised value of the property for house & lot, townhouse & condominium,
• Up to 60% of the appraised value of the property or lot.

Interest Rate based on fixing period-  1 year- 5.75%

2 years- 6.50%

3 years- 6.50%

5 years- 6.75%

10 years- 8.50%

RIZAL COMMERCIAL BANKING CORP. (RCBC)

Home Renovation

Maximum loan terms – 20 years

Minimum loan amount- P300,000

Maximum loan amount- Up to 80% of the appraised value of house and lot, townhouse, or condominium unit.

House and Lot, Vacant Lot, Home Refinancing

Maximum loan terms- 20 years

Minimum loan amount- P1,000,000

Maximum loan amount- Up to 80% of the appraised value of house and lot, townhouse, or condominium unit and up to 70% of appraised value if vacant lot only.

Interest Rate based on fixing period– 1 year- 5.50%

2 years- 5.50%

3 years- 6.50%

5 years- 6.88%

10 years- 9.50%

ROBINSONS BANK

Maximum loan terms- 20 years for Locally Employed and 15 years for OFW and Self-employed.

Maximum loan amount- Up to 90% of the total contract price for Accredited Developers and up to 80% of the appraised value for Non-Accredited Developers

Interest Rate based on fixing period-  1 year- 5.88%

2 years- 6.25%

3 years- 6.25%

4 years- 6.88%

5 years- 6.88%

SECURITY BANK

Maximum loan terms- 20 years

Minimum loan amount- P1,000,000

Maximum loan amount- Up to 80% of the property’s appraised value

Interest Rate based on fixing period– 1 year- 6.25%

2 years- 6.25%

3 years- 6.25%

5 years- 6.75%

10 years- 7.75%

STERLING BANK OF ASIA

Maximum loan terms- 25 years

Minimum loan amount- P500,000.00

Maximum loan amount- P10 Million or up to 80% of the property’s appraised value

UNION BANK

Maximum loan terms- 20 years

Minimum loan amount- P500,000

Maximum loan amount- Up to 80% of the property’s contract price.

Interest Rate based on fixing period-  1 year- 6.00%

2 years- 6.00%

3 years- 6.50%

5 years- 7.50%

10 years- 9.50%

UNITED COCONUT PLANTERS BANK

Construction and Acquisition of House & Lot, Townhouses and Condominium Units

Maximum loan terms-20 years

Minimum loan amount- P500,000

Maximum loan amount- up to 70% of the appraised value for houses and lots, townhouses, and condominium units or up to 80% of the contract price for accredited developers

Vacant Lots

Maximum loan terms-10 years

Minimum loan amount- P500,000

Maximum loan amount- up to 60% of the appraised value for vacant lots or up to 80% of the contract price for accredited developers

Interest Rate based on fixing period-  1 year- 5.25%

2 years- 6.25%

3 years- 6.75%

VETERANS BANK

Maximum loan terms- 20 years

Minimum loan amount- P375,000

Maximum loan amount- 80% of the appraised value of the collateral, 60% on vacant lots

Interest Rate based on fixing period-  1 year- 5.25%

3 years- 5.75%

5 years- 7.50%

WHAT IS A MORTGAGE CALCULATOR?

To be easier for you to check or have an estimation regarding your possible monthly mortgage fee you can use a mortgage calculator.

A mortgage calculator makes calculating the estimate of monthly loan payments and comparing rates across each bank of your choice easy. All you need to do is to fill in the required details of the calculator and it will calculate automatically for you.

Design your Dream House

For properties where you can avail home equity loan, bank financing and PAG-Ibig Home Loan, you may visit All Properties. Start building your family’s dream home or purchase a ready for occupancy house and lot!