If you're currently on a loan moratorium or payment holiday — whether from a bank-granted relief program, a Bangko Sentral ng Pilipinas (BSP) directive, or a personal arrangement — you may be wondering whether you can still refinance your home loan to lock in a lower rate. The short answer is: it depends on the bank and the type of moratorium you're under. But the good news is that refinancing during or shortly after a payment holiday is more possible than most homeowners think.
This guide covers the most common questions Filipino borrowers ask about refinancing during a loan moratorium, including what banks look at, what documents you'll need, and how to position yourself for the best possible outcome. If you want to see how much you could save by moving to a lower rate, try the Nook Home Loan Refinance Calculator to get an instant estimate before you apply.
A loan moratorium is a period during which your lender temporarily suspends or defers your required monthly amortization payments. In the Philippines, moratoriums have been granted in several forms: government-mandated relief under laws like the Bayanihan to Recover As One Act (Bayanihan 2), bank-specific hardship programs (common during the COVID-19 pandemic), and calamity-related deferrals for typhoon or flood victims.
A payment holiday is essentially the same concept but is often used to describe a shorter, bank-initiated deferral — sometimes just one to three months — that can be granted at the borrower's request. Critically, a moratorium does not mean your interest stops accruing. In most cases, interest continues to build up during the deferral period, and the deferred amounts are either added to the back end of your loan term or restructured into larger future payments. This distinction matters a great deal when you're considering refinancing, because the outstanding balance you refinance may be higher than your original schedule projected.
Yes, in some cases — but it is not straightforward, and the answer depends heavily on the type of moratorium you are under and the policies of both your current lender and the bank you want to refinance with.
If your moratorium was government-mandated and applied uniformly to all borrowers (such as the Bayanihan-era deferrals), most banks treat this neutrally during credit assessment, since it was not a sign of individual financial distress. In these cases, refinancing while still technically in the deferred period has been approved by Philippine banks, provided the borrower meets all other credit requirements.
However, if your moratorium was granted on a case-by-case basis due to income loss, job displacement, or a specific hardship, banks will scrutinize your current financial capacity more carefully. The receiving bank needs confidence that you can service the new loan from day one. In these situations, you may need to wait until your moratorium ends and you have resumed regular payments — ideally for at least three to six consecutive months — before applying to refinance. Nook works with multiple bank partners and can help you identify which lenders are most open to your specific situation.
For government-mandated moratoriums, no — at least not under the frameworks applied during the Bayanihan programs. The BSP issued guidelines directing banks not to report deferred payments as past due to the Credit Information Corporation (CIC) during those specific periods. This means borrowers who availed of these deferrals should not have seen a negative mark on their CIC credit records as a direct result of the moratorium.
For bank-initiated or individually negotiated payment holidays, the treatment varies. Some banks flag the account internally as restructured or under special arrangement, which can appear in your CIC data and may raise questions during a refinance credit review. It does not automatically disqualify you, but the receiving bank may ask for a letter of explanation and additional documentation proving your current financial stability. If you are unsure how your moratorium was reported, you can request your credit report from the CIC directly before applying to refinance — this is a smart step that costs very little and gives you a clearer picture of what lenders will see.
Bank policies on this change frequently and are not always publicly disclosed, which is one of the reasons working with a mortgage broker like Nook is valuable in this situation. Based on general market experience, banks that tend to take a more case-by-case, documentation-heavy approach — meaning they are more willing to consider your full financial picture rather than automatically declining — include BPI, Security Bank, and RCBC. These banks have historically been more flexible with borrowers who can demonstrate a clear recovery in income and a strong payment track record post-moratorium.
BDO and Metrobank tend to have stricter internal credit policies and may require a longer clean payment history after any restructuring before approving a refinance. PNB and Chinabank sit somewhere in the middle. Pag-IBIG (HDMF) has its own separate framework for moratoriums and refinancing, which is discussed in a separate question below.
The honest reality is that no single bank is universally the best option for every borrower in this situation. Nook submits your application to multiple lenders simultaneously, so you get real offers rather than guesses.
In addition to the standard home loan refinancing documents required by Philippine banks — government-issued ID, proof of income, latest ITR, payslips, bank statements, and property documents — you should prepare the following specifically because of the moratorium:
1. Moratorium confirmation letter from your current bank — a letter or official notice confirming the terms of your deferral, the dates it covered, and how the deferred amounts were handled (capitalized, added to term, etc.).
2. Updated loan statement of account — showing your current outstanding balance, which will reflect any accrued interest added during the moratorium period. This is the figure the new bank will use to compute the refinanced loan amount.
3. Proof of resumed payments — bank statements or official receipts showing you have been paying regularly since the moratorium ended. Three to six months of clean payments significantly strengthens your application.
4. Letter of explanation — a brief, factual letter explaining why the moratorium was availed, what has changed in your financial situation, and why you are now in a stable position to service the new loan. Banks appreciate transparency, and this letter helps underwriters assess your application more favorably.
5. Current proof of income — especially important if your income situation changed during the period of the moratorium. For employed borrowers, this means the most recent payslips and a Certificate of Employment. For self-employed borrowers, the most recent audited financial statements and business permits.
This is one of the most important financial considerations for borrowers who went through a payment holiday. During a moratorium, your interest does not stop — it accumulates. Depending on how your bank handled the deferral, this accrued interest was likely either: (a) added to your outstanding principal balance (capitalized), or (b) deferred and added as additional installments at the end of your loan term.
If the interest was capitalized, your outstanding balance on paper is now higher than it would have been had you continued paying normally. When you refinance, the new bank's loan amount will be based on this higher balance. You should verify this figure carefully on your latest Statement of Account before proceeding.
On the positive side: even with a slightly higher balance, refinancing from a rate of, say, 8% or 9% to the best available rate of 5.99% p.a. through Nook can still produce significant monthly savings. For example, on a remaining balance of 4,000,000 over 20 years, moving from 8.5% to 5.99% reduces your monthly payment by approximately 6,200 pesos — that is more than 74,000 pesos in savings per year. Use the Nook Refinance Calculator to run your own numbers with your actual balance.
There is no universal waiting period mandated by the BSP, but in practice, most Philippine banks want to see a minimum of three to six months of consecutive on-time payments after any restructuring, deferral, or payment holiday before they will approve a refinance application. Some banks may require up to twelve months for borrowers whose moratorium was individually negotiated rather than part of a broader government program.
That said, waiting longer is not always the right answer either — especially in a rising interest rate environment or when you are paying a significantly higher rate than what is currently available. Every month you delay refinancing from, for example, 9% to 5.99% is a month of unnecessary interest expense. The break-even calculation matters here: if refinancing will save you enough over time to more than offset any costs, starting the process sooner makes financial sense.
Our recommendation: begin gathering your documents and getting a free assessment through Nook as soon as your moratorium ends. Even if you need to wait a few more months before formally applying, you can use that time to understand your options, compare rates, and ensure your paperwork is in order so you can move quickly when you're ready. You can also explore the Nook Break-Even Calculator to understand how long it takes for your refinance savings to outweigh the costs.
The best refinance rate currently available through Nook is 5.99% per annum. Whether you qualify for this rate depends on several factors: your loan-to-value ratio (LTV), your income and debt-service ratio, your credit history, and the property type and location.
For borrowers who went through a moratorium, the rate you are offered may depend partly on how your credit history looks post-deferral and how long ago the moratorium ended. Borrowers with a clean payment track record of six or more months after a government-mandated moratorium typically qualify for the same competitive rates as any other refinance applicant. If your moratorium was individually negotiated and you have fewer than six months of clean payments, some banks may quote slightly higher rates or request a larger equity buffer (lower LTV).
The key comparison is not what rate you can get in an ideal scenario — it is what rate you are paying right now versus what is available. Most Filipino homeowners are currently on rates between 7% and 10%. Even if post-moratorium underwriting results in a rate of 6.5% rather than 5.99%, that is still a very significant improvement. Getting multiple offers through Nook at no cost to you is the most reliable way to find out exactly what rate your situation qualifies for.
Yes, Pag-IBIG home loans that were placed on moratorium can be refinanced, but there are a few unique considerations. Pag-IBIG has historically offered its own calamity loan moratoriums and payment relief programs for members affected by disasters or widespread economic shocks. These are governed separately from commercial bank policies.
If you want to refinance your Pag-IBIG loan with a commercial bank (a common strategy to access lower rates or more flexible terms), the receiving bank will assess your application based on your current financial profile. A Pag-IBIG moratorium that was part of an official HDMF relief program is generally viewed neutrally by commercial banks, similar to the treatment of BSP-directed bank moratoriums.
One thing to verify first: check whether your Pag-IBIG loan has a lock-in period or prepayment penalty that may apply if you pay it off early through refinancing. Pag-IBIG loans sometimes carry a penalty for full payment within a certain number of years from release. Factor this cost into your savings calculation before proceeding. If you want to stay within the Pag-IBIG system, HDMF also offers its own restructuring and relending programs that may serve as an alternative to commercial bank refinancing.
Nook is the Philippines' first digital mortgage broker, and our service is completely free for borrowers. We work with multiple bank partners and handle the entire refinancing process on your behalf — from initial assessment and document preparation to bank submission and loan release coordination.
For borrowers who went through a moratorium, we provide three specific forms of support. First, we conduct an honest pre-assessment of your current situation so you know whether you are likely to be approved now or whether it makes sense to wait a few more months and what to do in the meantime. Second, because we submit to multiple banks simultaneously, we identify which lenders are most receptive to your profile — saving you the time and potential credit inquiry impact of applying to banks one by one. Third, we help you prepare the documentation that matters most in your specific situation, including the explanation letter and updated loan statement, so your application is presented in the strongest possible light.
There are no broker fees, no upfront charges, and no obligation. If you're unsure whether refinancing makes sense for your situation right now, start by checking what home loan interest rates are currently available in the Philippines and compare them to what you're paying today. If the gap is significant, it's worth having a conversation.