If you’re planning to purchase a property in the Philippines, one of the most practical ways to finance your dream home is through a bank housing loan. Unlike pag-ibig or in-house financing options, bank housing loans usually offer competitive interest rates, flexible payment terms, and access to higher loan amounts. However, the process of applying and getting approved can be daunting if you’re not familiar with the requirements and procedures.

In this comprehensive guide, we’ll walk you through the key requirements to qualify for a bank loan, what you need to prepare, the loan approval process, and where to apply for a housing loan in the Philippines. Whether you’re a first-time homebuyer, an OFW, or a real estate investor, this article will give you everything you need to make informed decisions about financing your property through a bank.

What Is a Bank Housing Loan?

A bank housing loan is a type of mortgage loan provided by banks to individuals who wish to purchase, construct, or renovate residential properties. It is one of the most common ways to finance a home purchase in the Philippines, allowing borrowers to pay off the property over an extended period—usually 10 to 25 years—depending on the bank’s terms.

1. What Is Required to Get a Bank Loan From a Bank?

To apply for a bank housing loan, you must meet both documentary and financial requirements. Here’s what most Philippine banks typically require:

Basic Requirements:

  • Accomplished loan application form (provided by the bank)
  • Two (2) valid government-issued IDs
  • TIN (Tax Identification Number)
  • Marriage certificate (if applicable)
  • Birth certificate (in some cases)
  • Latest 1×1 or 2×2 ID photos

Proof of Income:

Depending on your employment status, these may vary:

For Locally Employed:

  • Certificate of Employment (COE) with compensation and tenure
  • Latest Income Tax Return (ITR)
  • Payslips (last 3 months)
  • Bank statements (last 6 months)

For Self-Employed:

  • Audited Financial Statements for the last 2 years
  • Business Registration (DTI or SEC)
  • Mayor’s Permit or Business Permit
  • Bank statements (last 6-12 months)
  • Income Tax Return

For OFWs:

  • Certificate of Employment or Employment Contract
  • Proof of remittance for the last 6-12 months
  • Passport and/or Work Visa
  • OEC (Overseas Employment Certificate)
  • POEA validated contract

Collateral Documents (Property-related):

  • Copy of Transfer Certificate of Title (TCT) or Condominium Certificate of Title (CCT)
  • Tax Declaration
  • Deed of Sale or Reservation Agreement
  • Vicinity map or sketch of the property

2. What Do You Need to Qualify for a Bank Loan?

Meeting the basic requirements is not enough. To qualify for a bank housing loan, banks typically assess your capacity, character, and collateral. Here’s a breakdown:

1. Stable Income and Employment

Most banks require applicants to be employed for at least 2 years in the same company or 3 years of continuous employment. For self-employed, they expect at least 2-3 years of profitable business operation.

2. Minimum Monthly Income

Banks set a minimum income requirement, usually:

  • ₱30,000 to ₱50,000 monthly income for locally employed
  • Higher for OFWs depending on destination country

3. Good Credit Standing

Your credit history plays a vital role in loan approval. Banks will check:

  • Existing loans
  • Credit card payment behavior
  • Credit reports (from CIC or other agencies)

4. Debt-to-Income Ratio (DTI)

Your total monthly amortizations (including credit card bills, other loans, etc.) should not exceed 40% of your monthly income. Some banks are stricter and allow only up to 30%.

5. Age

Most banks require borrowers to be:

  • At least 21 years old upon application
  • Not more than 65 years old upon loan maturity

3. Which Bank Gives a Loan Easily?

While no bank guarantees approval, some are more flexible or faster than others based on internal policies. Here are banks that are commonly known to be more accessible or easier to deal with for bank housing loans:

1. BDO Unibank

  • Known for their flexible terms and high loanable amounts
  • Accepts OFWs, business owners, and salaried employees
  • Quick processing time (as fast as 5 days if documents are complete)

2. Metrobank

  • Competitive interest rates
  • Offers pre-approval for house and lot packages
  • Allows up to 80% of the appraised value as a loan

3. RCBC (Rizal Commercial Banking Corporation)

  • Offers promo interest rates for housing loans
  • Accepts combined income (spouses or co-borrowers)

4. Security Bank

  • One of the fastest loan approvals (5-7 days)
  • Strong customer service and dedicated loan advisors

5. PSBank (Philippine Savings Bank)

  • Known for a more relaxed documentation requirement
  • Offers fixed interest rate options

Tip: No matter how easy a bank may seem, approval still depends on your qualifications. Always compare banks and check their latest offers and promos.

4. What Is the Process of Loan Approval?

Understanding the bank housing loan process can help you better prepare and improve your chances of approval. Here is a step-by-step outline:

Step 1: Pre-Qualification

This is where the bank evaluates your basic eligibility. You can usually inquire online or over the phone to check if you meet their basic criteria (age, employment, income).

Step 2: Application Submission

You fill out the application form and submit your documents. Some banks allow online submissions, while others require branch visits.

Step 3: Initial Evaluation

The bank reviews your documents and financial status. This includes:

  • Verifying employment or business
  • Credit investigation
  • Checking your DTI and income

Step 4: Property Appraisal

The bank will appraise the value of the property you’re buying. They will only lend up to a certain percentage (usually 70% to 80%) of the appraised value.

Step 5: Loan Approval

Once everything checks out, the bank issues a Letter of Guarantee (LOG) or Loan Approval Notice. This outlines the approved loan amount, interest rate, term, and monthly amortization.

Step 6: Signing of Loan Documents

You will be asked to visit the bank to sign the official documents, including:

  • Loan Agreement
  • Promissory Note
  • Disclosure Statement

Step 7: Loan Release

Once all papers are signed and collateral is secured (title transfer, mortgage annotation), the loan proceeds will be released—either to you or directly to the property seller.

5. Where Do I Get a Housing Loan?

You can apply for a bank housing loan through several channels:

1. Direct to Banks

You can walk into a branch or apply via the bank’s official website. This gives you direct access to loan advisors and customized offers.

2. Through Real Estate Developers

Many property developers partner with banks and offer pre-approved loan arrangements. This simplifies the process and may give you access to promotions like lower interest rates or waived fees.

3. Mortgage Brokers or Loan Consultants

Brokers help you compare multiple banks and handle your application. While some charge a fee, others get their commission from banks, making it a free service for you.

4. Online Housing Loan Platforms

Sites like LoanSolutions, eCompareMo, and iMoney allow you to compare housing loan products from multiple banks side by side.

Common Mistakes to Avoid When Applying for a Bank Housing Loan

  • Incomplete documents: Always double-check the requirements before submitting your application.
  • Overstating income: Banks verify everything. Misrepresenting income can lead to disapproval.
  • Too many existing debts: Keep your debt ratio low before applying.
  • Applying to multiple banks at once: Each inquiry can affect your credit score. Apply to 1-2 banks only.
  • Failing to check credit score: Request your credit report from the CIC (Credit Information Corporation) beforehand.

How Much Can You Borrow From a Bank?

Most Philippine banks allow you to borrow:

  • Up to 80% of the appraised value of the property
  • Minimum loan amount: ₱500,000
  • Maximum loan amount: Up to ₱20 million or more (depending on your income and the bank’s policy)

Interest Rates for Bank Housing Loans in the Philippines

Interest rates vary across banks and depending on the fixing period. Here are general estimates as of 2025:

  • 1-year fixing: 6.75% to 7.25%
  • 3-year fixing: 7.00% to 7.50%
  • 5-year fixing: 7.25% to 8.00%
  • 10-year fixing: 8.00% to 9.50%

After the fixed period, the interest rate becomes repriced annually based on prevailing market conditions.

Final Thoughts

A bank housing loan is a practical and accessible way to own your dream home in the Philippines, especially if you want competitive rates and flexible terms. But it’s important to come prepared—with the right documents, a good credit history, and a realistic view of your financial capacity.

Always compare your options, read the fine print, and make sure you understand the full cost of borrowing. If you’re unsure, consult a loan officer or broker who can guide you through the process. If you can also contact us and fill up the housing loan pre qualifying form.

Buying a home is one of the biggest financial decisions you’ll ever make. With the right information, preparation, and partner bank, your dream home is within reach.