Can You Refinance During Loan Moratorium Philippines?

A loan moratorium is a temporary suspension or deferment of required loan payments, granted either by a lending institution on a case-by-case basis or mandated broadly by the government. In the Philippines, homeowners may encounter moratoriums in several situations:

• Government-mandated moratoriums: Under the Bayanihan to Heal as One Act (Bayanihan 1) and the Bayanihan to Recover as One Act (Bayanihan 2), all banks and lending institutions were required to grant payment deferrals to borrowers affected by COVID-19 without incurring penalties or additional interest.
• Calamity-related moratoriums: Pag-IBIG (HDMF) and some private banks offer payment holidays to borrowers in areas declared under a state of calamity due to typhoons, earthquakes, or other disasters.
• Bank-initiated hardship deferrals: Individual banks may grant short-term payment holidays to borrowers facing documented financial hardship, such as job loss or hospitalization.

It is important to note that most moratoriums do not cancel interest accrual — they simply delay when payments are due. This means your total loan balance typically grows during a moratorium, which is one reason why refinancing at a lower rate as soon as possible can still be highly beneficial.

Technically yes, but practically it is very difficult. Here is the realistic picture:

The main challenge: To refinance, you need a new bank (the receiving bank) to approve your application and pay off your existing loan in full. Most Philippine banks will conduct thorough due diligence on the loan being refinanced, and an active moratorium raises immediate red flags — it signals that the borrower was recently unable to make regular payments.

When it may still be possible: If the moratorium was government-mandated (such as a Bayanihan law deferral) rather than a borrower-initiated hardship request, some banks take a more understanding view. They may consider these deferrals as circumstantial rather than reflective of your personal creditworthiness. However, this still varies significantly from bank to bank.

The receiving bank's perspective: Banks offering refinancing (BDO, BPI, Security Bank, Metrobank, and others) will want to see at least 12–24 months of consistent, on-time payment history before the moratorium period. If your payment record before the moratorium was clean, your chances improve considerably.

In most cases, Nook's mortgage specialists recommend timing your refinancing application for after the moratorium period ends and you have resumed at least two to three consecutive regular payments, unless the rate environment makes immediate action compelling.

Banks evaluating a refinance application from a borrower currently on moratorium will scrutinize several factors more closely than usual:

• Reason for the moratorium: Was it government-mandated (Bayanihan, calamity relief) or borrower-requested due to financial hardship? The former is viewed more leniently.
• Pre-moratorium payment history: Banks will pull your credit history from the Credit Information Corporation (CIC) and review your actual loan statements. A spotless record before the moratorium strengthens your case significantly.
• Current income and employment status: The bank needs confidence that you can service a new loan. Updated payslips, employment certificates, ITRs (Income Tax Returns), and bank statements are critical.
• Loan-to-Value (LTV) ratio: If your property has appreciated since you took out the original loan, a lower LTV (typically below 80%) gives banks more comfort. A professional property appraisal may help your case.
• Length of remaining moratorium: If there are only weeks left on the payment holiday, a bank may ask you to simply resume payments first before applying.

It is worth engaging a mortgage broker like Nook to present your application in the best possible light across multiple banks simultaneously, rather than applying one at a time and collecting rejections that further affect your credit profile.

This is one of the most common concerns — and the answer depends heavily on the type of moratorium.

Government-mandated moratoriums (Bayanihan laws): The Bangko Sentral ng Pilipinas (BSP) issued guidance during the Bayanihan periods directing that accounts availing of the mandatory grace periods should not be reported as past due or have their credit scores negatively impacted. Banks were required to report these accounts as current during the deferral window. However, how this was actually implemented varied across institutions and credit bureaus.

Bank-granted hardship deferrals: These are reported differently. If you proactively requested a payment holiday from your bank and it was formally approved, most banks report the account as deferred rather than delinquent — but you should confirm this in writing with your bank. An account reported as deferred is less damaging than one reported as past due, but it may still trigger additional scrutiny from a receiving bank.

What to do: Before applying to refinance, request your credit report from the CIC (Credit Information Corporation) or through an accredited special accessing entity. Review it for any inaccurate negative markings from your moratorium period. If you find errors, you can file a dispute. Starting the refinancing process with a clean and accurate credit report dramatically improves your odds of approval.

If your credit history has been affected, you may also want to read our guide on how to refinance your home loan with bad credit in the Philippines for additional strategies.

The standard home loan refinancing document requirements in the Philippines apply, but during or shortly after a moratorium you will likely need to provide additional supporting documents to address the lender's concerns. Here is a complete checklist:

Standard requirements:

• Fully accomplished bank application form
• Valid government-issued IDs (at least two)
• Proof of income: latest three months' payslips (employed) or ITR with BIR stamp and audited financial statements (self-employed)
• Certificate of Employment with compensation
• Latest six to twelve months bank statements
• Original Transfer Certificate of Title (TCT) or Condominium Certificate of Title (CCT)
• Updated tax declaration and real property tax receipts
• Loan statement of account from your current lender

Additional documents likely required due to moratorium:

• Official moratorium/deferral letter or approval notice from your current bank
• Evidence of government mandate (if Bayanihan or calamity-related) — this helps contextualize the deferral
• Letter of explanation addressing the moratorium circumstances
• Updated credit report from CIC showing clean status during the deferral period
• Proof of resumed payments (if moratorium has ended)

Nook's mortgage specialists will help you compile and present these documents in a way that maximizes your chances across multiple bank partners.

In most cases, yes — waiting until the moratorium period concludes and you have made at least two to three months of regular, on-time payments is the smarter strategy. Here is the reasoning:

Arguments for waiting:

• Your application will be assessed on your full payment history without the complication of an active deferral
• Banks require proof of current debt-servicing capacity, which is much easier to demonstrate with recent payment records
• A rejected application while on moratorium can further affect your credit profile, making the eventual successful application harder
• The administrative complexity of refinancing an account with a deferred outstanding balance is higher, causing some banks to simply decline

Arguments for moving quickly:

• If the moratorium is nearly over (weeks, not months), starting the application process now means you may get approved and funded shortly after resuming payments
• Interest rates can change — locking in a low rate like 5.99% p.a. sooner protects against future rate increases
• Every month you delay at a higher rate (say, 8–9%) versus a potential refinance rate of 5.99% p.a. costs you real money in interest

The practical recommendation: use the moratorium period to prepare your documents, clean up your credit report, get a property valuation, and speak to Nook's specialists. This way, you are ready to submit a strong, complete application the moment your moratorium ends and your first resumed payment clears.

Pag-IBIG Fund has historically been more active in granting moratoriums than private banks, particularly for members in areas affected by typhoons, earthquakes, and other declared calamities. Pag-IBIG moratoriums typically involve:

• A three-to-six month payment suspension for qualified borrowers in affected areas
• Accrued interest being added to the outstanding principal (capitalized), increasing the total loan balance
• No penalty charges during the approved deferral window
• An extension of the loan term by the duration of the moratorium (in some programs)

Key consideration for Pag-IBIG moratorium borrowers: Because Pag-IBIG capitalizes the unpaid interest during a moratorium, your outstanding loan balance after the moratorium will be higher than before it started. This actually makes refinancing to a lower rate even more compelling — you want to start reducing that larger balance at the lowest possible interest rate.

However, Pag-IBIG's own guidelines typically require that a borrower's account be current (no arrears) before transferring or refinancing elsewhere. You will generally need to complete the moratorium period, have your account formally updated to reflect the restructured balance, and then resume regular payments before applying to move your loan to a private bank.

Yes, this is possible — and for many Pag-IBIG borrowers, it can result in substantial long-term savings even after a moratorium period. Pag-IBIG's current interest rates for repriced or long-term loans can be significantly higher than what private banks offer, especially for higher loan amounts.

The process after a Pag-IBIG moratorium typically involves:

1. Waiting for Pag-IBIG to formally close and update your account post-moratorium, reflecting the new (possibly higher) outstanding balance
2. Resuming regular payments for at least three to six months to demonstrate current payment capacity
3. Requesting an updated Loan Statement of Account from Pag-IBIG (this is a required document for the receiving bank)
4. Applying for refinancing through a private bank via Nook, which shops your application across multiple bank partners simultaneously
5. Using the approved private bank loan to pay off the Pag-IBIG balance in full

One important note: you must be a current Pag-IBIG member to have taken out the original loan, but once you refinance to a private bank, your Pag-IBIG monthly contribution continues independently of your home loan. To understand the full picture of moving from Pag-IBIG to a private bank, including the potential savings, see our detailed guide on Pag-IBIG home loan refinancing to private banks.

The savings from refinancing from a typical rate to Nook's best available rate of 5.99% p.a. can be very substantial — especially considering that moratoriums often add to your outstanding balance through capitalized interest.

Here is an illustrative example. Suppose after your moratorium, your outstanding Pag-IBIG or bank loan balance is 3,500,000 pesos, you have 20 years remaining, and your current repriced rate is 8.5% p.a.:

• At 8.5% p.a. over 20 years: Monthly payment of approximately 30,456 pesos
• At 5.99% p.a. over 20 years: Monthly payment of approximately 25,078 pesos
• Monthly saving: approximately 5,378 pesos
• Annual saving: approximately 64,536 pesos
• Total saving over 20 years: approximately 1,290,720 pesos

Even accounting for refinancing costs (bank processing fees, appraisal, documentary stamp tax, registration), which typically total between 50,000 and 100,000 pesos for a loan of this size, the savings break even within the first two years and deliver over 1,000,000 pesos in lifetime savings.

The key insight is that even if your moratorium slightly increased your outstanding balance, refinancing to a significantly lower rate still dramatically reduces the total interest you will pay over the remaining term.

The most productive first step is to get a clear picture of where you stand before approaching any bank. Here is a practical action plan:

1. Check your credit report: Request your credit report through the CIC or an accredited accessing entity. Verify that your moratorium period is correctly reported and that no inaccurate past-due markings exist. Dispute any errors in writing before applying anywhere.
2. Request an updated loan statement: Get the latest Statement of Account from your current lender showing the exact outstanding balance, any capitalized interest, and the current interest rate and repricing schedule.
3. Confirm moratorium end date and account status: Get written confirmation from your current bank or Pag-IBIG that your moratorium is formally closed and your account is current.
4. Resume regular payments: Make at least two to three consecutive on-time payments post-moratorium before submitting a refinancing application. This is the clearest signal to a receiving bank that your cash flow has stabilized.
5. Speak to Nook: Nook is the Philippines' first digital mortgage broker, and the service is 100% free to borrowers. Rather than approaching banks one by one (which generates multiple hard credit inquiries), Nook presents your profile to multiple bank partners simultaneously and identifies which lenders are most likely to approve your specific situation — including those with more flexible views on recent moratorium history. With rates available from 5.99% p.a., the potential savings make it worth the conversation.

The bottom line: a recent moratorium does not permanently close the door on refinancing. With the right timing, documentation, and approach, you can still access significantly lower rates and rebuild your financial position faster.