Want To Become A Homeowner? Check The Interest Rates Of Housing Loans In These Banks

There is nothing wrong with renting. In fact, one of SmartParenting.com.ph's most popular articles in 2019 is money advice saying this is true (read here to guess the celebrity who agrees). But, for many Filipinos, owning a house is still the ultimate dream. Of course, not everyone can pay for it — at least, not right away. That’s where housing loans step in to help people pay for the purchase or construction of their dream home.

Housing loans, also called mortgages, are given out by mainly either banks or the government’s Housing Development Mutual Fund, aka Pag-IBIG. Both methods are viable options with their own specific strengths. Bank loans typically offer lower interest rates and higher loan appraisal value, while Pag-IBIG has a longer fixing period and lower processing fees.

We’ll focus on housing loans in banks in the Philippines, starting with the lowest interest rate to the highest.

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Banks offering housing loans in the Philippines 

Here are some things to note. First, the interest rate of housing loans in the Philippines changes, and it depends how much you’re borrowing from the bank. And as to how much you can actually borrow from the bank, this is defined by the “margin of finance” or the percentage of the property value it is willing to loan you. Also, the loan tenure, which is the period of time you’re given to pay back the bank, differs per bank, with some extending their tenure to up to 30 years.

There are a lot of factors that go into choosing the bank to apply for a housing loan, so we’ve listed some main points of the banks down below to help you find the best housing loan for you:

1| HSCBC Housing Loan

Lowest interest rate available: 4.99 percent
Margin of finance: 80 percent

Minimum loan amount: P700,000
Maximum loan amount: P50 million

Minimum loan tenure: 5 years
Maximum loan tenure: 20 years

2| Security Bank Home Loan

Lowest interest rate available: 5.25 percent
Margin of finance: 80 percent

Minimum loan amount: P1 million
Maximum loan amount: P100 million

Minimum loan tenure: 1 year
Maximum loan tenure: 20 years

3| BPI Housing Loan

Lowest interest rate available: 5.25 percent
Margin of finance: 80 percent

Minimum loan amount: P400,000
Maximum loan amount: 70 percent of appraised value of house and lot; 60 percent of appraised value of vacant lot and residential condominium; 80 percent of appraised value of house and lot that does not exceed P5 million

Minimum loan tenure: 1 year
Maximum loan tenure: 25 years

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4| Metrobank Housing Loan

Lowest interest rate available: 5.50 percent
Margin of finance: 80 percent

Minimum loan amount: P500,000
Maximum loan amount: P100 million

Minimum loan tenure: 1 year
Minimum loan tenure: 25 years

5| RCBC Savings Bank Housing Loan

Lowest interest rate available: 5.50 percent
Margin of finance: 70 percent

Minimum loan amount: P300,000
Maximum loan amount: P5 million

Minimum loan tenure: 1 year
Maximum loan tenure: 20 years

6| Eastwest Bank Home Loan

Lowest interest rate available: 5.50 percent
Margin of finance: 80 percent

Minimum loan amount: P500,000
Maximum loam amount: P10 million

Minimum loan tenure: 1 year
Maximum loan tenure: 30 years

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7| BDO Housing Loan

Lowest interest rate available: 5.50 percent
Margin of finance: 80 percent

Minimum loan amount: P500,000
Maximum loan amount: P100 million

Minimum loan tenure: 1 year
Maximum loan tenure: 20 years

8| PNB Sure Home Housing Loan

Lowest interest rate available: 5.75 percent
Margin of finance: 80 percent

Minimum loan amount: P200,000
Maximum loan amount: 80 percent of appraised value of property

Minimum loan tenure: 1 year
Maximum loan tenure: 20 years

9| Chinabank HomePlus Loan

Lowest interest rate available: 5.75 percent
Margin of finance: 80 percent

Minimum loan amount: P500,000
Maximum loan amount: P25 million

Minimum loan tenure: 1 year
Maximum loan tenure: 25 years

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10| Maybank Home Loan

Lowest interest rate available: 6.00 percent
Margin of finance: 80 percent

Minimum loan amount: P800,000
Maximum loan amount: 80 percent of appraised value of property

Minimum loan tenure: 1 year
Maximum loan tenure: 20 years

11| Chinatrust Housing Loan Fixed Rate

Lowest interest rate available: 5.75 percent
Margin of finance: 80 percent

Minimum loan amount: P500,000
Maximum loan amount: P25 million

Minimum loan tenure: 1 year
Maximum loan tenure: 20 years

12| Union Bank Housing Loan

Lowest interest rate available: 6.00 percent
Margin of finance: 90 percent

Minimum loan amount: P500,000
Maximum loan amount: 90 percent of appraised value of property

Minimum loan tenure: 1 year
Maximum loan tenure: 20 years

Finding the right bank that works for you is important, but it is best to have one or two backup banks in case your application isn’t approved. The screening process of housing loan applications is strict, to say the least, so we suggest choosing one or two housing loans in the Philippines to err on the safe side so you can get loan for your dream home.

This story originally appeared on Esquiremag.ph.

*Edits have been made by the SmartParenting.com.ph editors.

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