Welcoming a new baby is one of life's greatest joys — but it often comes with a fresh look at your household finances. If you're currently on maternity leave and wondering whether now is the right time to refinance your home loan, you're not alone. Many Filipino homeowners ask whether reduced or interrupted income during leave disqualifies them from getting a better rate. The good news: refinancing during maternity leave is possible, and with the right preparation, you could lock in rates as low as 5.99% p.a. through Nook — potentially saving tens of thousands of pesos every year.
This FAQ covers everything new parents need to know — from income documentation and bank requirements to timing strategies and what to expect from the application process. Nook's service is 100% free to borrowers, so there's no cost to exploring your options even while you're on leave.
Yes, it is possible to refinance during maternity leave in the Philippines, though it requires more careful preparation than a standard refinance application. Banks assess your ability to repay the loan, so they will look closely at your income situation. Maternity leave — whether paid through your employer or through SSS maternity benefit — is a temporary change in your income profile, and most lenders understand this.
The key is demonstrating that your financial situation before and after leave is stable. If you can show a strong employment history, a confirmed return-to-work date, and ideally a co-borrower (such as your spouse), many Philippine banks will process your application. Nook works with multiple lenders and can identify which banks are currently most flexible for applicants on leave — at no cost to you.
This varies by bank. SSS maternity benefits and employer-paid maternity leave are generally not counted as regular qualifying income by Philippine banks because they are temporary and not sustainable. Most lenders will base their income assessment on your pre-leave salary as evidenced by your Certificate of Employment (COE) and payslips from the months before your leave began.
Some banks will accept a COE that confirms your monthly salary and your return-to-work date as sufficient proof that your income will resume. Others may require you to have already returned to work before they finalise approval. Nook can advise you on which banks are most likely to approve your application based on your specific circumstances, including your leave status and loan amount.
The standard refinancing documents apply, with a few additional items that are especially important when you are on leave:
- Certificate of Employment (COE) — must state your position, monthly salary, employment status (regular), and ideally your confirmed return date
- Recent payslips — typically the last 3 months before your leave started
- Latest ITR (Income Tax Return) — BIR Form 2316 or Form 1700 from your most recent tax year
- Bank statements — last 3 to 6 months, showing your financial stability
- Maternity leave notice or HR confirmation — to explain any gap in payslips
- Property documents — Transfer Certificate of Title (TCT), tax declaration, and latest appraisal if available
- Existing loan statement of account — showing your current outstanding balance and payment history
If your spouse is a co-borrower, their complete income documents will also be required. Nook will give you a full personalised checklist once you start your application.
Not necessarily — and waiting could cost you money. Interest rates change over time, and locking in a lower rate sooner rather than later can mean more savings over the life of your loan. If your current rate is between 7% and 10% and you can qualify for 5.99% p.a. through Nook, every month of delay is a month you're paying more than you need to.
That said, the right timing depends on your specific situation. If your leave is short (105 days for normal delivery under the Expanded Maternity Leave Law), you may find it easier to start the process now and have approval finalised around the time you return. Banks typically take 4 to 8 weeks to process refinance applications, so beginning during leave can mean a smooth transition once you're back at work.
Nook can assess your readiness now and let you know whether to apply immediately or stage your application — again, at no cost to you.
Yes, and this is often the most effective strategy for couples where one partner is on maternity leave. If your spouse is employed or earning regular income, their salary can be the primary income basis for the refinance application, with you listed as a co-borrower. Many Philippine banks allow spouses to apply jointly, and combined household income can strengthen your debt-to-income ratio significantly.
This approach works particularly well when your spouse has stable employment, a good credit history, and income sufficient to service the loan on their own. Banks will still assess your existing financial obligations as a household, so it helps to have manageable overall debt levels. If your combined debt obligations are high relative to your spouse's income, you may want to read our guide on refinancing with a high debt-to-income ratio for additional strategies.
The savings can be substantial. Here's an example based on a common loan scenario for Filipino homeowners:
Suppose you have an outstanding home loan of 3,500,000 pesos with 20 years remaining, and your current interest rate is 8.5% p.a. Your approximate monthly payment would be around 30,400 pesos.
If you refinance to 5.99% p.a. through Nook on the same remaining term, your monthly payment drops to approximately 25,100 pesos — a saving of roughly 5,300 pesos per month, or 63,600 pesos per year. Over five years, that's more than 318,000 pesos back in your family's pocket — money that could go toward your child's education, emergency savings, or simply easing the financial pressure of a growing household.
Use Nook's free calculator at nook.com.ph to run the numbers based on your actual loan balance, current rate, and remaining term.
In the Philippines, credit inquiries work somewhat differently than in other countries. Checking your options with Nook does not affect your credit score — Nook conducts a soft assessment to match you with suitable lenders before any formal application is made.
When a formal application is submitted to a bank, they may conduct a credit check through the Credit Information Corporation (CIC). Multiple hard inquiries within a short period can have a minor impact on your credit profile, which is why Nook's approach of identifying the best-fit lender first — rather than applying to multiple banks simultaneously — is beneficial. This is especially important for applicants on maternity leave who want to present the strongest possible application to the right bank the first time.
Bank policies change regularly, and flexibility depends on factors like your loan amount, property value, credit history, and whether you have a co-borrower. As a general guide, larger universal banks such as BDO, BPI, and Metrobank tend to have more structured credit policies, while mid-sized banks like Security Bank, RCBC, and EastWest Bank can sometimes offer more flexibility in how they assess income documentation.
Pag-IBIG (HDMF) refinancing is another option worth exploring, particularly for members with consistent contribution records — Pag-IBIG's assessment criteria can differ from commercial banks and may be more accommodating during leave periods.
Rather than approaching banks individually and risking multiple declines on your record, Nook assesses your profile and matches you with the most suitable lender from its panel. This saves time, protects your credit profile, and gives you access to rates across multiple institutions simultaneously.
Refinancing as a self-employed borrower already requires different documentation than salaried employment, and being on a form of maternity break from your business adds another layer of complexity. However, it is absolutely not impossible. Self-employed borrowers typically qualify using ITRs, audited financial statements, and business bank statements rather than payslips — documents that reflect your business's track record rather than a current monthly salary figure.
If your business has been profitable and your financials are in order, a temporary slowdown during maternity leave may not significantly impact your application, especially if your bank statements show consistent cash flow. For a detailed look at how self-employed Filipinos can approach refinancing, see our guide on home loan refinancing for self-employed borrowers in the Philippines.
Nook is the Philippines' first digital mortgage broker, and its service is completely free for borrowers. Here's what Nook does for new parents specifically:
- Free eligibility assessment — Nook reviews your situation (including your leave status and co-borrower details) and tells you honestly whether you're likely to qualify now or whether it's better to wait a few weeks
- Lender matching — Rather than applying to multiple banks and risking rejection marks on your credit file, Nook identifies which lender on its panel is the best fit for your profile
- Document guidance — Nook provides a clear checklist of what you need so you're not scrambling to gather the wrong paperwork
- End-to-end support — From application to approval, Nook handles the coordination with the bank so you can focus on your newborn
- Best available rates — Nook currently offers access to rates as low as 5.99% p.a., which may be significantly lower than what you're paying now
Starting your application takes just a few minutes at nook.com.ph. There's no obligation, no fees, and no pressure — just clear information to help your growing family make the best financial decision.