Philippine Bank & Lending Institutions Interest Rates 2017 for Your Dream Home

home loan interest rate

Philippine Bank & Lending Institutions Interest Rates 2017

Every family deserves a comfortable home, a comfortable life. Don’t hold back, start living your dream now. Instead of throwing your money for your monthly rent, why not own a property that you can call your own? Many are still intimidated in buying a house because of the fear of not being able to pay it. This is not a problem anymore because most of the banks and other financial institutions today offer low-interest rates and flexible loan terms. Different loans are available for customers who have different needs and payment capacity.

Philippine Bank & Lending Institutions Interest Rates

Owning a house maybe one of the biggest decision a person will ever make, so it is just right to know the factors to consider in choosing one. Since purchasing a house requires a huge amount of capital, getting ot through a housing loan is one of the best solution. In applying for a housing loan one of the most important factor is to know the underlying interest rate. According to Investopedia “Interest rate is the amount charged, expressed as a percentage of principal, by a lender to a borrower. It is typically noted on an annual basis.” With so many banks offering different interest rates and payment terms, it can be confusing.

To help you decide which bank or institution is ideal for you we’ve collected the recent interest rates offered in the Philippines. We rank them according to the lowest rates they offer. Choose the best deal that would make you feel at home.

Interest Rates for Regular Housing Loan in the Philippines
Rank

 

Bank

 

Lowest Interest Rate 1st Year 2nd Year 3rd Year 4th Year 5th Year 10th Year 11th-15th Year 16th-30th Year Reference:

 

1

 

BPI

 

 

5.25%

 

 

5.25%

 

6.00%

 

6.25%

 

6.88%

 

6.88%

 

8.50%

 

N/A

 

 

N/A

 

 

https://www.bpiexpressonline.com/p/1/122/housing-loan-interest-rates
2

 

Security Bank

 

5.25%

 

5.25%

 

6.25%

 

6.25%

 

7.00%

 

7.00%

 

8.00%

 

9.00%

 

N/A

 

 

https://www.securitybank.com/personal/loans/home-loan-housing-mortgage/
3

 

EastWest

 

5.50%

 

5.50%

 

6.25%

 

6.25%

 

6.75%

 

6.75%

 

9.00%

 

9.50%

 

11.00%

 

https://www.eastwestbanker.com/info/homeloan.asp
4

 

Metrobank

 

 

5.50%

 

5.50%

 

6.25%

 

6.25%

 

6.88%

 

6.88%

 

8.50%

 

10.50%

N/A

 

 

https://www.metrobank.com.ph/homeloan/RatesAndFees.aspx
5

 

BDO

 

5.50%

 

5.50%

 

6.50%

 

6.50%

 

6.88%

 

6.88%

 

N/A

 

 

N/A

 

 

N/A

 

 

https://www.bdo.com.ph/personal/loans/home-loan/interest-rate
6

 

 

Union Bank

 

5.50%

 

 

5.50%

 

N/A

 

 

6.50%

 

N/A

 

 

7.50%

 

9.50%

 

10.50%

 

N/A

 

 

https://www.unionbankph.com/personal/loans/home-loans/loan-calculator?view=homecalculator
7

 

HSBC

 

5.50%

 

 

5.50%

 

7.75%

 

7.75%

 

7.75%

 

7.75%

 

N/A

 

 

N/A

 

 

N/A

 

 

https://www.hsbc.com.ph/1/2/personal/loans/home-loan#lendingrates
8

 

 

PNB

 

 

5.75%

 

 

5.75%

 

6.50%

 

6.50%

 

6.75%

 

6.75%

 

8.50%

 

10.25%

 

10.75%

 

http://www.pnb.com.ph/index.php/personal-banking/loans/sure-home
9

 

 

China Trust Bank

 

5.75%

 

 

5.75%

 

7.00%

 

7.00%

 

7.60%

 

7.60%

 

N/A

 

 

N/A

 

 

N/A

 

 

https://www.ctbcbank.com.ph/PersonalBanking/Loans/HousingLoan/En_HousingLoanwithfixedrate.html
10

 

MayBank

 

6.00%

 

6.00%

 

N/A

 

 

6.25%

 

N/A

 

 

7.50%

 

N/A

 

 

N/A

 

 

N/A

 

 

http://www.maybank.com.ph/en/personal/loans/maxihome-loan.page
11

 

 

PSBANK

 

 

6.00%

 

 

6.00%

 

6.50%

 

7.00%

 

N/A

 

 

7.50%

 

8.50%

 

9.25%

 

9.75%

 

https://www.psbank.com.ph/psbank-online-loan-amortization-calculator/HomeLoan/Rates
12

 

China Bank Savings 7.50%

 

7.50% 8.50% 8.50% N/A

 

9.00% 10.25% 11.00% 11.50% http://www.cbs.com.ph/rates.php?tst=2
13

 

RCBC

 

8.00%

 

8.00% 9.75% 9.75% 10.00% 10.00% 11.00% 11.25% 11.50% http://www.rcbcsavings.com/?p=9
14

 

Philippine Veterans Bank 9.88%

 

 9.88%

 

9.88%

 

9.88%

 

9.88%

 

9.88%

 

N/A

 

N/A

 

N/A

 

http://www.pvbhomeloans.com/loans.html

 

 

Lending Institution 3 Yrs 5 Yrs 10 Yrs 15 Yrs 20 Yrs 25 Yrs 30 Yrs Loan Amount

 

PAG-IBIG 6.985% 7.825% 8.775% 9.385% 9.675% 10.000% 11.375% Up to 6M PhP

 

 
 

 

 

SSS

8.00% per anum Up to P450,000.00
9.00% per anum Over P450,000.00 up to P1,000,000.00
10.00% per anum Over P1,000,000.00 up to P1,500,000.00
11.00% per anum Over P1,500,000.00 up to P2,000,000.00

*Source: PAG-IBIG, SSS

Banks and other lending institutions alike offer fixing period. It is a duration when interest rate is fixed from a specific period of time. Thereafter would follow interest repricing where the loan is reviewed and possibly changed based on the current market rate. Listed in the table above are Philippine banks ranked based on the lowest interest rates they offer. All published interest rates are subject to change without prior notice as they are indicative rates. Actual interest rates will always be based in the prevailing market interest at the time of availing the loan.

Loanable Amount & Eligibility for Housing Loan

Minimum loanable amount varies per bank or institution. But the maximum loanable amount usually range from 60% to 80% of the appraised value of the property.  Eligibility for housing loan is also based in the borrower’s capacity to pay. Other criteria are but not limited to citizenship, age, gross family monthly income, and employment status. To assess how much an individual can borrow most banks incorporate self-assessment and calculator in their websites which can be used by the clients.

Housing Loan-related Expenses

Before a housing loan is successfully furnished, there are more housing loan related expenses that need to be settled. Related expenses may include mortgage redemption insurance, fire insurance, handling fee, notarial fee, transfer fee, registration fee, and document stamp tax. Various banks are also offering a different kind of loan to cater to these related expenses for the customers convenience.

Housing Loan-related Improvements

Purschasing a house is now made easy because of the different institutions that offer affordable housing loan. But what if you already have a home and you just want to improve it? It’s not a problem since most of the said institutions also offer loans for the purpose of home renovation. Speaking of home renovation, PAG-IBIG confirmed last year that they are now approving as much as Php 500,000.00 loan for Solar Panel installation. It is reported that solar panel at home is now considered one of the best investment you can have for your home as it offers great return on investment.

Housing loan usually takes 5 to 30 years to finish and is considered a big investment. Deciding carefully before availing one is a good precaution to keep yourself from potentially be buried in debt. It would be best to choose a housing loan that you would be very comfortable paying in the next years to come.

Watch some Home Loan essential tips here:

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