Congratulations on your new baby — and on thinking ahead about your family's finances. If you're currently on paternity leave and wondering whether now is a good time to refinance your home loan, the short answer is: yes, it's possible. Philippine banks look primarily at your regular employment income and credit history, and a 7-day paternity leave does not disqualify you from applying. In fact, locking in a lower rate now — the best available through Nook is 5.99% p.a. — could save your growing family hundreds of thousands of pesos over the life of your loan.
That said, there are a few practical considerations unique to new fathers: documentation timing, income verification, and how co-borrower arrangements can strengthen your application. This guide walks you through everything you need to know so you can make an informed decision while juggling nappies and bank forms.
Yes, you can apply for a home loan refinance during paternity leave. Under Republic Act 11210 (the 105-Day Expanded Maternity Leave Law) and the existing 7-day paternity leave entitlement, you remain a regular employee of your company throughout the leave period. Philippine banks assess your permanent employment status and regular salary — not whether you happen to be on leave at the time of application.
Because paternity leave in the Philippines is typically only 7 days (with Senate bills proposing expansion), most applicants are back at work before the bank even finishes processing their application, which takes 30–60 days on average. Your employment tenure, credit score, and loan-to-value ratio matter far more to underwriters than the fact that you took a week off to be with your newborn.
Paternity leave pay itself is not separately assessed — banks look at your gross monthly salary as reflected in your payslips and Certificate of Employment (COE). Since paternity leave pay is typically equivalent to your regular daily rate for the duration of the leave, your payslip will look essentially the same as any other month.
The standard income requirement for home loan refinancing at most Philippine banks is a gross monthly income of at least 40,000 to 50,000 pesos, depending on the lender and the loan amount. As long as your regular salary meets this threshold, the source of that month's specific payslip — whether you were at the office or at home — is not a disqualifying factor.
The document checklist is the same as for any employed borrower. You will typically need:
- Valid government-issued IDs (passport, driver's license, SSS ID, etc.)
- Certificate of Employment (COE) — request this from your HR department before or during your leave; most companies can issue it within 1–3 days
- Latest 3 months' payslips — if your most recent payslip covers your paternity leave period, it is still acceptable as it reflects your regular rate of pay
- Latest ITR (BIR Form 2316 or 1700)
- Original Transfer Certificate of Title (TCT) or Condominium Certificate of Title (CCT)
- Latest Statement of Account from your existing lender
- Marriage certificate (required if your spouse is a co-borrower or if the property is conjugal)
The new birth certificate for your baby is not required for a refinancing application. Pro tip: use the quieter moments of paternity leave to scan and organise these documents digitally — it will speed up your application significantly.
Absolutely, and for many new parents this is a smart strategy. Adding your spouse as a co-borrower allows banks to combine both incomes when computing your loan-to-income ratio, which can qualify you for a larger loan amount or a more competitive rate tier.
If your spouse is currently on maternity leave (up to 105 days under RA 11210), note that most banks will still count her regular employment income — just as they do for your paternity leave pay. Her maternity benefit pay and her regular salary are separate; banks look at her COE and payslips to confirm her regular rate.
If your spouse is self-employed or a freelancer, banks will ask for her ITR and audited financial statements instead. Either way, a dual-income application generally results in faster approval and access to lower rates.
The savings can be life-changing for a growing family. Here's a concrete example:
Suppose you have an outstanding balance of 3,500,000 pesos with 20 years remaining, currently priced at 8.5% p.a. (a common repricing rate after the fixed period ends). Your current monthly amortisation would be approximately 30,400 pesos.
If you refinance to 5.99% p.a. through Nook, your new monthly payment drops to approximately 25,100 pesos — a saving of around 5,300 pesos per month. Over 20 years, that's more than 1,270,000 pesos in total interest savings. That's a college fund, emergency fund, and a lot of nappies.
The exact savings depend on your outstanding balance, remaining term, and current rate. Nook's free mortgage calculator can give you a personalised figure in under 2 minutes.
Not directly. Banks in the Philippines do not ask you to declare dependents the way some overseas lenders do, and a newborn baby does not appear as a liability on your credit assessment. Your debt-to-income (DTI) ratio is calculated based on your documented monthly income versus your existing financial obligations — credit card minimum payments, car loans, personal loans, and the proposed new mortgage amortisation.
However, if the arrival of your baby has caused a change in household income — for example, your spouse has resigned to become a full-time parent — this would reduce combined household income and could affect eligibility if you were relying on dual income for the application. In this case, it's worth speaking with a Nook mortgage advisor to assess which lenders have the most suitable income thresholds for your situation.
Most major Philippine banks follow broadly similar policies when it comes to employment status and leave periods. BPI, Security Bank, RCBC, and Chinabank are generally well regarded for their home loan refinancing products and have straightforward documentation processes that work well for employed borrowers on any type of approved leave.
Pag-IBIG (HDMF) is also worth considering, particularly if your current loan is with a private bank — refinancing from a private bank to Pag-IBIG can sometimes unlock lower rates for qualified members, and Pag-IBIG's income requirements are often more accessible for middle-income earners.
Because each bank has slightly different appetite, rate tiers, and processing speed, it pays to compare multiple offers simultaneously rather than applying to one bank at a time. This is exactly what Nook does for you — for free.
You don't need to wait — but you should be realistic about your bandwidth. With a newborn at home, the administrative back-and-forth of a loan application can feel overwhelming. Here's a practical approach:
During paternity leave: Use the time to gather documents, run the numbers, and submit your inquiry to Nook. This costs you nothing and there's no obligation. Nook's team will handle the bank sourcing and paperwork coordination on your behalf.
After returning to work: Your COE will reflect active employment status, which some borrowers feel gives a cleaner paper trail — though as noted above, being on approved leave does not disqualify you.
The main reason not to wait too long is interest rate risk. If your current fixed-rate period is ending soon, your bank may automatically reprice you to a higher variable rate. Acting before that repricing date preserves your savings window.
From application submission to loan release, the typical timeline is 30 to 60 banking days, though some banks can move faster. Here is a rough breakdown:
- Document submission and initial assessment: 3–7 days
- Property appraisal: 5–10 days
- Credit evaluation and approval: 10–20 days
- Loan documentation and notarisation: 5–10 days
- Title transfer and annotation: 10–15 days
Because the process spans several weeks, there is no meaningful disadvantage to applying during your paternity leave — you will almost certainly be back at your desk long before the bank requests any follow-up information. Nook proactively monitors your application and chases the bank on your behalf, so you're not waiting on hold during a busy period with a newborn.
Yes, completely free. Nook is compensated by the banks, not by you. There are no broker fees, no application charges, and no hidden costs for using Nook to find and secure your refinancing deal. You pay exactly the same — or less — than if you walked into the bank directly, but with the benefit of having multiple banks competing for your loan and a dedicated advisor managing the process for you.
This is especially valuable for new parents who are time-poor and don't want to spend their limited free hours comparing mortgage term sheets. Nook does the heavy lifting so you can focus on your family. To get started, simply submit your details at nook.com.ph and a mortgage advisor will reach out within one business day.