BDO Home Loan Refinance: Everything You Need to Know in 2026
Refinancing your home loan with BDO Unibank is one of the most practical financial moves a Filipino homeowner can make — especially if your current interest rate is sitting above 7% or 8%. With BDO offering a 1-year fixed rate of 6.00% p.a. and a streamlined 30-day approval process, switching could mean thousands of pesos in monthly savings over the life of your loan.
This guide walks you through the complete refinancing process — from checking if you qualify, to submitting documents, to getting your new loan released. Whether you're refinancing with BDO or refinancing away from BDO to another lender, we cover it all.
Why Refinance Your Home Loan in 2026?
Most Filipino homeowners locked in their home loans several years ago at rates between 7% and 10% per annum. If your loan was taken out when rates were higher, you may now be significantly overpaying every single month.
Here's a concrete example: Say you have an outstanding balance of 3,000,000 pesos with 20 years remaining, currently at 8.5% p.a. Your monthly amortization is approximately 26,100 pesos. If you refinance to BDO's rate of 6.00% p.a., your new monthly payment drops to around 21,500 pesos — a savings of roughly 4,600 pesos per month, or over 55,000 pesos annually.
Multiply that by a 20-year remaining term and you're looking at potential lifetime savings exceeding 1,100,000 pesos — just from switching your rate.
BDO Home Loan Refinance Rates (2026)
BDO Unibank is one of the Philippines' largest banks and a Nook partner, offering competitive refinancing rates for qualified borrowers:
- 1-Year Fixed Rate: 6.00% p.a.
- Home Equity Loan Rate: 6.00% p.a.
These rates are among the most competitive currently available in the Philippine market. After your fixed-rate period ends, your loan reprices based on prevailing market rates — so it's worth planning ahead for that reset.
Note: Interest rates are subject to change. Always verify current rates directly with BDO or through your Nook mortgage broker before making a decision.
BDO Refinance Requirements: Do You Qualify?
Before diving into paperwork, check if you meet BDO's basic refinancing criteria:
Income Requirements
- Minimum Monthly Income: 50,000 pesos (gross)
- Maximum Debt-to-Income Ratio (DTI): 40% — meaning your total monthly debt obligations (including the new mortgage) should not exceed 40% of your gross monthly income
Employment Types Accepted
- Privately employed (local)
- Government employees
- BPO workers
- OFWs and seafarers
- Self-employed individuals
- Licensed professionals (doctors, lawyers, engineers, etc.)
Property Requirements
BDO accepts refinancing for a wide range of property types, including:
- Ready-for-occupancy (RFO) residential properties
- Pre-selling properties (with conditions)
- Properties being resold
- New construction homes
- Foreclosed properties
Loan-to-Value (LTV) Considerations
BDO will appraise your property to determine how much they'll lend. Generally, banks lend up to 70–80% of the appraised value for refinancing. Your outstanding loan balance relative to your home's current value matters — if your property has appreciated significantly since you bought it, you may be in an even stronger position.
Documents You'll Need
Gather these documents before applying to avoid delays:
Personal Documents
- Valid government-issued ID (at least 2)
- Filled-out BDO home loan application form
- Latest Income Tax Return (ITR) — BIR Form 2316 or 1701
- Proof of billing (utility bill for address verification)
Income Documents
For employed applicants:
- Certificate of Employment with compensation
- Payslips for the last 3 months
- BIR Form 2316 (latest)
For self-employed / business owners:
- DTI or SEC registration
- Audited Financial Statements for the last 2 years
- Business bank statements for the last 6 months
- ITR (BIR Form 1701) for the last 2 years
For OFWs:
- Employment contract or POEA-verified contract
- Proof of remittance (last 3–6 months)
- Consularized documents if applicable
Property Documents
- Original Transfer Certificate of Title (TCT) or Condominium Certificate of Title (CCT)
- Tax Declaration (latest)
- Real Property Tax receipts (updated)
- Contract to Sell or Deed of Sale (if applicable)
- Location map or vicinity map of the property
Existing Loan Documents
- Statement of Account from your current lender showing outstanding balance
- Loan history or amortization schedule
- Mortgage Release documents (your current lender will provide these upon full settlement)
The BDO Home Loan Refinance Process: Step by Step
Here's what the refinancing journey typically looks like from start to finish:
Step 1: Assess Your Current Loan and Goals
Before applying anywhere, know your numbers. Pull your latest Statement of Account from your current bank. Note your outstanding balance, remaining term, and current interest rate. Then calculate what your monthly savings could be at 6.00% p.a. with BDO.
If you want help doing this, Nook's mortgage advisors can run the numbers for you — completely free of charge.
Step 2: Check Your Eligibility
Confirm you meet the minimum income requirement (50,000 pesos/month), that your DTI will fall under 40%, and that you've been making on-time payments on your current loan for at least 12–24 months. Lenders look at payment history closely during refinancing.
Step 3: Submit Your Application
You can apply for BDO home loan refinancing directly at a BDO branch, or — faster and simpler — through Nook's digital platform. Nook is a free mortgage broker, meaning there's no cost to you. Nook submits your application to BDO (and can simultaneously check rates at other Nook partner banks), ensuring you get the best available deal.
Step 4: Property Appraisal
BDO will arrange for an independent appraisal of your property. This typically takes 5–10 business days. The appraisal determines how much BDO will lend you, and the appraised value will be used to calculate your loan-to-value ratio. You'll generally shoulder the appraisal fee.
Step 5: Credit Evaluation and Loan Processing
BDO's credit team evaluates your application, income documents, and credit history. BDO's typical approval timeline is around 30 days. During this period, they may request additional documents — respond promptly to keep things moving.
Step 6: Loan Offer and Sign-Off
Once approved, BDO issues a formal Letter of Offer outlining your approved loan amount, term, and interest rate. Review this carefully. If you're happy with the terms, sign and return it.
Step 7: Redemption of Existing Loan
BDO will coordinate the payoff of your existing mortgage. Your old lender releases the mortgage on your property's title, and BDO registers the new mortgage in their favor. This legal transfer of mortgage is called a mortgage redemption or cancellation of mortgage, and it involves fees with the Registry of Deeds.
Step 8: Loan Release
Once all legal requirements are complete, your new BDO loan is officially released. Your new monthly amortization begins, at your new, lower rate.
Fees and Costs to Expect
Refinancing isn't entirely free — there are transactional costs you should factor into your decision:
- Appraisal fee: Typically 3,000–5,000 pesos depending on property location and size
- Processing/application fee: Varies; some banks waive this for refinancing applicants
- Mortgage cancellation fee: Charged by your existing bank when releasing the mortgage — usually a small fixed amount
- Registry of Deeds fees: For annotation of the new mortgage on your title
- Notarial fees: For loan documents
- Documentary Stamp Tax (DST): 1.5 pesos per 200 pesos of loan amount — a significant cost on larger loans
- Mortgage Redemption Insurance (MRI): Annual insurance premium, usually required by the bank
- Fire Insurance: Required by all Philippine lenders
A rough estimate for total refinancing costs on a 3,000,000 peso loan is between 30,000 and 70,000 pesos. The good news: on a loan of that size, your monthly savings at 6.00% p.a. (versus 8.5%) could recover those costs within 12–18 months.
Refinancing Away From BDO vs. Refinancing With BDO
If your current loan is already with BDO, you have two options:
- Internal repricing: Ask BDO to reprice your existing loan to a lower rate. This is simpler and cheaper — fewer documents, no title transfer. However, BDO may not offer you the same rates as a new applicant.
- External refinancing: Move your loan to another bank offering a better rate. This involves the full process described above but at another lender. Check out our guide on how to switch banks and save on monthly payments for a detailed comparison of both paths.
If your current loan is with another bank and you want to move to BDO, the full process above applies. BDO is a strong destination lender for refinancing given its 6.00% p.a. rate, wide branch network, and 30-day approval timeline.
How Nook Helps You Refinance for Free
Nook is the Philippines' first digital mortgage broker, and our service to borrowers is 100% free. Here's what Nook does for you:
- Compares rates across multiple Nook partner banks simultaneously — including BDO
- Handles document collection and submission on your behalf
- Communicates with bank processors so you don't have to chase anyone
- Provides a dedicated mortgage advisor to answer your questions at every step
- Helps you calculate your real savings after fees, so you make an informed decision
Nook earns a referral fee from the bank — not from you. So you get full broker service at zero cost.
If you're weighing your options and want to see how BDO stacks up against other lenders, Nook can provide a side-by-side comparison. You can also read more about switching to BDO and lowering your monthly payment for a deeper breakdown of what borrowers from other banks typically experience when refinancing in.
Is BDO Refinancing Right for You?
BDO refinancing makes strong sense if:
- Your current rate is above 7% p.a.
- Your outstanding balance is at least 1,000,000 pesos (smaller balances may not justify closing costs)
- You have at least 10 years remaining on your loan
- Your monthly gross income is at or above 50,000 pesos
- Your property is fully titled with no legal encumbrances
If you tick most of those boxes, the math almost certainly works in your favor. The break-even on refinancing costs is typically under two years — and the savings compound every month after that.