If you recently started a new job and are still within your probationary period, you may be wondering whether you can refinance your existing home loan to take advantage of lower interest rates. The short answer is: it's complicated — but not impossible. Philippine banks and lenders have strict employment stability requirements, and probationary status is generally viewed as a risk factor. However, there are circumstances and strategies that can work in your favour.
This guide answers the most common questions Filipino homeowners ask about refinancing during a probation period, including what documentation you'll need, which lenders are more flexible, and what alternatives exist if traditional bank refinancing isn't available to you right now. Nook's service is 100% free to borrowers, so even if you're exploring your options early, speaking with a mortgage broker costs you nothing.
In most cases, Philippine banks will not approve a home loan refinancing application if you are currently in your probationary employment period. Banks treat employment stability as one of the core indicators of your ability to repay, and probationary status introduces uncertainty since your employer can end your contract without cause before regularisation.
That said, some lenders evaluate applications on a case-by-case basis. If you have a very strong credit history, a low loan-to-value ratio on your property, significant assets or savings, and a short remaining probation period, a lender may still consider your application or allow you to lock in terms pending regularisation. This is the exception rather than the rule, and you would typically need a broker to identify and negotiate with the right lender.
Banks use your employment status as a proxy for income stability and repayment capacity. A regular or permanent employee has legal protections under Philippine labour law — an employer cannot simply terminate a regular employee without just cause and due process. A probationary employee does not have the same protections, meaning your income stream is considered less secure.
For refinancing specifically, the bank is being asked to take on an existing mortgage obligation. They want confidence that the borrower can sustain monthly amortisations for the full loan term, which is typically 15 to 25 years. An uncertain employment situation in the near term is seen as a red flag, even if your current salary is competitive.
Most Philippine banks require that you have been a regular or permanent employee for at least one to two years at the time of your refinancing application. Some banks set the threshold at six months of regular employment as a minimum, but this is less common and usually applies only to applicants with otherwise strong financial profiles.
The standard probationary period under Philippine Labour law is six months. If you are currently within this period, you generally cannot meet the tenure requirement. Once you receive your regularisation or permanent employment contract, the clock typically starts from your regularisation date — though some banks will count your total continuous tenure with the same employer, including the probationary period, which works in your favour if you have not switched employers.
Flexibility varies and policies change, so there is no permanent answer — but generally speaking, some lenders take a more holistic view of applications than others. Among the major banks, Security Bank, BPI, and RCBC have at various times offered products or evaluated applications with more emphasis on overall credit profile rather than employment tenure alone.
Pag-IBIG (HDMF) is worth considering if you are a fund member, as its qualification criteria can differ from commercial banks and it serves a broader range of Filipino workers including those who may be transitioning employment. If you are currently on a Pag-IBIG home loan, you may also want to explore refinancing your Pag-IBIG home loan to a private bank once your employment is regularised, as private banks can offer significantly lower rates.
Working with a mortgage broker like Nook is the most efficient way to identify which lender currently has the most suitable criteria for your situation, without having to apply to multiple banks and risk multiple hard credit inquiries.
Yes, your previous employment history is a meaningful factor that banks will consider. If you have a strong track record — for example, five or more years of continuous employment at your previous company with a clean loan repayment history — some banks may view your overall profile more favourably despite your current probationary status.
You will typically need to provide a Certificate of Employment from your previous employer, your last payslips from that role, and your ITR (Income Tax Return) for the previous one to two years. If your new role is in the same industry and at a higher salary, and you can demonstrate career progression, a sympathetic lender may treat the career move as a low-risk transition rather than a destabilising event.
However, this requires careful application strategy. A rejected application can affect your credit profile. It is strongly advisable to pre-qualify through a broker before formally applying anywhere.
The documentation requirements for a refinance application in the Philippines are largely the same regardless of employment status, but your employment documents will receive extra scrutiny. You should prepare the following:
- Duly filled-out loan application form
- Valid government-issued IDs (at least two)
- Certificate of Employment (COE) stating your position, salary, and employment start date
- Latest one to three months of payslips
- Income Tax Return (ITR) for the past one to two years, BIR-stamped
- If recently regularised: your regularisation letter or updated employment contract
- Bank statements for the past three to six months
- Existing home loan statements and amortisation schedule
- Copy of Transfer Certificate of Title (TCT) or Condominium Certificate of Title (CCT)
- Tax Declaration and latest Real Property Tax (RPT) receipts
- Property appraisal (some banks arrange this themselves)
If you were previously self-employed or had other income sources, include those supporting documents as well. A complete application package gives you the best chance of a favourable review.
Yes, it can make a meaningful difference. Banks apply informal risk tiering to industries and employers. If you are on probation at a large, well-established corporation — particularly a multinational, a listed Philippine conglomerate, or a blue-chip company — some banks may view your probationary status with less concern, because the implied job security and compensation structure of those employers is considered stronger.
Conversely, if you are working for a small or newly established company, in a volatile industry, or on a project-based contract framed as probationary, lenders will likely apply stricter scrutiny. Government employees and employees of government-owned and controlled corporations (GOCCs) often receive more favourable treatment due to the high job security associated with public sector roles, even during probationary periods.
High-income professionals such as doctors, lawyers, engineers, and IT specialists may also find more flexibility, particularly if they can demonstrate consistent earning history through prior employment and professional income.
If you are unable to refinance right now due to employment status, the most practical approach is to wait until you are regularised and then apply. This is usually the cleanest path and results in the best loan terms. In the meantime, you can use that window to strengthen your application by maintaining a clean repayment record on your current loan, reducing other outstanding debts, and building up savings.
If you have a genuine financial hardship concern — for example, your current interest rate is causing cash flow stress — you can speak to your existing lender about a loan restructuring or repricing request. This is different from refinancing and does not require you to requalify with a new lender. Your existing bank may be willing to adjust your rate or restructure your amortisation schedule.
For borrowers who also have credit issues alongside employment concerns, it may be worth reading about how to refinance with bad credit in the Philippines as some of the same strategies apply — particularly around improving your overall financial profile before applying.
The safest and most commonly recommended approach is to wait at least six months after receiving your regularisation before applying to refinance. This gives you payslips that clearly reflect your regular employment status, and it demonstrates a short but consistent earning track record with your new employer.
If you want to maximise your chances of approval and get the best possible rate, waiting twelve months post-regularisation is even better. At that point, you will also have a full year's ITR from your current employer, which is a document most banks require and which strengthens your income verification significantly.
While waiting, continue making on-time payments on your existing home loan. Your repayment history is one of the most influential factors in a refinance application, and a spotless track record over 12 to 24 months can outweigh concerns about how long you have been with your current employer.
Once you are eligible and your profile is strong, refinancing can deliver meaningful savings. Through Nook, the best refinance rate currently available is 5.99% per annum. Most Filipino homeowners carrying an existing home loan are currently paying between 7% and 10% p.a., so the potential saving is significant.
To put this in concrete terms: on a loan balance of 3,500,000 with a remaining term of 20 years, the difference between a 9% rate and a 5.99% rate is roughly 6,200 per month in amortisation savings — or over 74,000 per year. Over a five-year repricing period, that is more than 370,000 in savings before compounding effects.
Your actual rate will depend on the lender, your loan-to-value ratio, loan amount, and overall credit profile. Nook compares offers across multiple Philippine banks at no cost to you, so you can see actual competing offers before committing to anything.