If you recently switched jobs or are currently serving your probationary period, you may be wondering whether refinancing your home loan is still possible. The short answer is: it is difficult, but not impossible. Philippine banks typically want to see stable, verifiable income before approving any new credit facility — and a refinance is treated the same as a fresh loan application. That means your employment status matters more than many borrowers expect.
This guide walks you through exactly what banks look for, which lenders are more flexible, and what practical steps you can take to improve your chances of getting approved for a lower rate — even while on probation. With the best refinance rate currently available through Nook at 5.99% p.a., the potential monthly savings for most Filipino homeowners are significant enough to make it worth understanding your options thoroughly before giving up on the idea.
Technically yes, but in practice most Philippine banks will decline or heavily scrutinise a refinance application from someone who is still serving their probationary period. Banks classify probationary employees as higher credit risk because their continued employment is not yet guaranteed — your employer can end the arrangement without the same legal protections that apply to regular employees.
Most major lenders — including BDO, BPI, Metrobank, and Security Bank — require at least one to two years of continuous employment with your current employer before they will consider a home loan or refinance application. Some banks set the minimum at six months of regularisation, meaning your probation must already be completed. A handful of lenders are more flexible if your overall profile is strong (large loan-to-value buffer, high income relative to the loan, co-borrower with stable employment), but these are the exception rather than the rule.
The most straightforward path is to wait until you pass probation and are regularised, then apply immediately. If your current loan is on a variable or re-pricing rate that is about to increase, speak to a Nook adviser first — there may be a bridge strategy that protects you in the meantime.
A refinance involves the bank taking on a new credit exposure to you, even though you already have a mortgage. The bank essentially closes the old loan and opens a new one, which triggers a full credit and income assessment. From the bank's perspective, they need to be confident you can service the debt for the entire new loan term — which could be 15 to 25 years.
Probationary employees represent an elevated risk because: (1) their income could stop abruptly if probation is not passed, (2) they have no track record with the new employer, and (3) their income during probation sometimes differs from their confirmed salary. Banks also look at your Debt Service Ratio (DSR), which is your total monthly loan obligations divided by your gross monthly income. If your income is uncertain or unverifiable, DSR calculations become unreliable, and the bank will simply decline rather than take the risk.
This is not a reflection of your personal reliability — it is a standardised risk policy applied uniformly across applicants in the same employment category.
The savings from refinancing at 5.99% p.a. versus a typical rate of 8% to 10% p.a. can be very substantial. Here is a concrete example: if you have an outstanding loan balance of 3,500,000 with 20 years remaining, your approximate monthly payment at 9% p.a. is around 31,500. At 5.99% p.a., the same loan would have a monthly payment of approximately 25,100 — a saving of roughly 6,400 per month, or 76,800 per year.
Over a standard 5-year fixed period before the next re-pricing, that is approximately 384,000 in total interest savings. Every month you delay refinancing after you become eligible is real money left on the table. So if your probation ends in three months, it is absolutely worth preparing your documents now so you can apply the moment you are regularised. The short wait is worthwhile — but do not delay once you qualify.
For employed applicants, the standard document requirements across most Philippine banks include: a completed loan application form, one valid government-issued ID, your Certificate of Employment (COE) stating your position, salary, and employment status, the last three months of payslips, your Income Tax Return (ITR) or BIR Form 2316 for the past one to two years, and the last three months of bank statements showing salary credit.
The COE is where probationary employees run into trouble. Banks want the COE to state that you are a regular or permanent employee. A COE that says "probationary" or lists an end date for the probation period will typically trigger a decline or a request to reapply once regularised.
For the property itself, you will also need a copy of the Transfer Certificate of Title (TCT), the latest real property tax receipt (Amilyar), a vicinity map, and the original loan documents from your current lender. Having these ready in advance means you can move quickly the moment your employment status changes.
Some banks do exercise more discretion than others, particularly if the overall risk profile of the application is very strong. Factors that can work in your favour even during probation include: a very low Loan-to-Value (LTV) ratio (for example, you owe 1,500,000 on a property worth 5,000,000), a high gross income relative to the loan amount, an excellent credit history with no missed payments, or a co-borrower who is already a regular employee with verifiable stable income.
Among the major banks, RCBC, EastWest Bank, and some branches of BPI have occasionally accommodated borrowers who were newly regularised or in the final weeks of probation, especially for refinances where the existing mortgage has a strong payment history. However, this is never guaranteed and depends heavily on individual branch managers and credit committees.
Pag-IBIG (HDMF) refinancing has slightly different rules and may be more accommodating for members with strong contribution histories — see the dedicated question on Pag-IBIG below. The most efficient approach is to let Nook match your profile to lenders simultaneously, rather than applying one by one and accumulating hard enquiries on your credit file.
Yes, this is one of the most effective strategies available to probationary employees. Philippine banks allow co-borrowers — most commonly spouses, but sometimes parents or siblings — whose income is included in the total qualifying income for the loan. If your co-borrower is a regular employee with at least one to two years of tenure and sufficient income to support the debt service ratio on their own, many banks will approve the refinance based primarily on the co-borrower's income profile.
For the co-borrower arrangement to work, your spouse or co-borrower must be willing to sign all loan documents and will be equally liable for the debt. They will also need to submit their own full set of income documents: COE, payslips, ITR, and bank statements. The property title may also need to reflect both names, depending on the bank's requirements.
If your spouse or partner is also on probation, this strategy will not resolve the issue — you would both need to wait for regularisation. But if only one of you recently changed jobs, co-borrowing is a clean and commonly used solution that can allow you to refinance now rather than waiting.
Pag-IBIG Fund refinancing operates under somewhat different eligibility rules compared to commercial banks, and in some cases it can be more accessible for borrowers whose employment is in transition. To qualify for Pag-IBIG housing loan refinancing, you generally need to: be an active Pag-IBIG member with at least 24 months of contributions at the time of application, not have any outstanding Pag-IBIG loan in default, and meet the minimum income requirement for the loan amount requested.
Pag-IBIG does require proof of income and employment, but their assessment can be more holistic — particularly for members with long contribution histories. If you have been contributing to Pag-IBIG for many years and your loan balance and monthly amortisation are manageable relative to your income, Pag-IBIG may be willing to proceed even if you are in the early stages of a new job.
It is important to note that Pag-IBIG's refinance rates and loan ceilings are different from commercial banks. Their rates can be competitive for lower loan amounts (typically below 6,000,000), but for larger balances, commercial bank refinancing through Nook at 5.99% p.a. may still offer a better outcome. A Nook adviser can run the numbers for both options so you can compare accurately.
In the Philippines, the credit bureau system — primarily managed by the Credit Information Corporation (CIC) and its accredited bureaus — records hard credit enquiries when a financial institution formally accesses your credit file as part of a loan evaluation. Multiple hard enquiries in a short period can negatively affect your credit score, and a recorded decline can also signal risk to future lenders.
This is one of the key reasons why applying to multiple banks individually while on probation is inadvisable. Each application generates a hard enquiry and a potential decline record, both of which will remain visible to future lenders. If you are declined by three or four banks in quick succession, your credit profile becomes harder to work with even after you are regularised.
The smarter approach is to work with Nook before submitting any formal application. Nook can pre-assess your profile, advise whether any lender is likely to approve your application in your current employment situation, and — if the timing is not right — help you prepare so that you apply once and succeed rather than applying multiple times and accumulating declines.
Self-employment and probationary employment are treated differently by Philippine banks, though both can present challenges for refinancing. Self-employed borrowers are assessed based on their business income rather than a salary, and banks typically require two to three years of audited financial statements or ITRs showing consistent profitability before they will approve a refinance.
If you recently became self-employed — within the last 12 to 24 months — you will likely face similar hurdles to a probationary employee, because the bank cannot yet verify a stable income track record. However, the good news is that self-employed income documentation rules do have some flexibility: banks may consider business bank statements, audited accounts, and even notarised financial statements for newer businesses in some cases.
If you transitioned from employment to self-employment and your business is less than two years old, the most practical refinancing strategies are: using a co-borrower who is employed, waiting until you have at least two full years of ITRs to present, or approaching lenders who specifically have self-employed mortgage products. Nook works with multiple lenders and can identify which ones are currently most open to recently self-employed borrowers.
There are several concrete actions you can take today to prepare, even if you cannot formally apply yet. First, find out your exact probation end date and mark it in your calendar — this is the earliest realistic date for submitting a refinance application. Second, contact your HR department now and ask them to prepare your Certificate of Employment for the date you are regularised, so there is no delay once probation ends.
Third, gather all your property documents: your Transfer Certificate of Title, latest tax declaration, real property tax receipts, and your current loan statement of account. These documents are required regardless of your employment status and having them ready will save weeks. Fourth, check your current loan's interest rate and re-pricing schedule — if a rate increase is coming up in the next six to twelve months, the urgency of refinancing is even higher.
Fifth, connect with Nook now for a free pre-assessment. Even if you cannot apply today, a Nook adviser can calculate your potential savings, identify the best lender options for your profile, flag any issues to resolve before you apply (such as a co-borrower requirement or a document gap), and put you in the queue so your application moves fast the moment you are eligible. There is no cost and no commitment — and the earlier you start the process, the sooner you can lock in a lower rate.