If you recently started a new job and are still within your probationary period, you might assume that refinancing your home loan is completely off the table. The good news is that it isn't always — but it does come with real challenges. Philippine banks and lenders evaluate employment status as a key indicator of income stability, and probationary employment is viewed as higher risk than regular or permanent employment. That said, with the right preparation and guidance, some borrowers in this situation have successfully refinanced to lower rates.
This guide answers the most common questions Filipino homeowners ask about refinancing during probationary employment. Whether you're moving from a Pag-IBIG loan to a private bank or switching between commercial lenders, understanding your options now can help you plan your next move — and potentially save tens of thousands of pesos in interest. Nook's mortgage specialists can assess your specific situation for free and tell you honestly whether refinancing makes sense right now or whether it's better to wait a few months.
Technically yes, but it is difficult and most banks will decline your application. Philippine banks require borrowers to demonstrate stable, verified income before approving a refinance. Probationary employees — typically those within the first 3 to 6 months of a new job — are considered higher credit risks because their employment is not yet guaranteed. Most bank credit policies explicitly require applicants to be regular or permanent employees with at least 1 to 2 years of continuous employment with the same employer.
That said, a blanket "no" is not universal. Some lenders assess applications on a case-by-case basis, especially if you have a strong repayment history on your existing loan, a high credit score, low loan-to-value ratio, or a co-borrower with stable income. The best path forward is to have a mortgage specialist review your full profile rather than assuming you are automatically disqualified.
Banks are primarily concerned with your ability to repay the loan over a 15 to 25 year term. Employment status is a direct proxy for income reliability. A probationary employee can be terminated at the end of the probationary period — typically 6 months under the Philippine Labor Code — without the same legal protections that apply to regular employees. This creates a period of income uncertainty that banks are reluctant to underwrite.
When a bank approves a refinance, it is essentially replacing your existing lender's exposure. If you lose your job shortly after refinancing and default, the bank bears that risk. This is why most lenders set a minimum tenure requirement — commonly 1 to 2 years with your current employer — before they will consider your application. Your income documents, particularly your Certificate of Employment (COE) and payslips, will clearly indicate your employment status, so there is no way to obscure it.
No Philippine bank officially markets itself as accepting probationary employees for home loan refinancing, but lending appetite varies by institution and can also shift based on current market conditions. In general, Security Bank, RCBC, and EastWest Bank have historically shown slightly more flexibility in evaluating non-standard employment situations compared to the stricter policy frameworks at BDO, BPI, and Metrobank. Robinsons Bank and PSBank also process applications individually and may consider strong mitigating factors.
It is important to note that even at more flexible banks, your application will still need to clear their credit committee, and probationary status will be flagged as a risk factor. Nook works with over a dozen lending partners across the Philippines and can identify which institution is most likely to view your profile favorably given your specific circumstances — saving you from multiple hard credit inquiries that could lower your credit score.
The core document requirements for a refinance application are the same regardless of employment status, but as a probationary employee you will need to be especially thorough. Expect to prepare:
- Certificate of Employment (COE) — this will show your probationary status and start date
- Latest 1 to 3 months payslips — showing your gross monthly income
- Income Tax Return (ITR) — your most recent BIR Form 2316 or ITR from your previous employer may be required
- Bank statements — typically 3 to 6 months of transaction history showing consistent income credits
- Existing loan statement of account — showing your outstanding balance and current monthly amortization
- Property documents — Transfer Certificate of Title (TCT), tax declaration, and condominium certificate of title (CCT) if applicable
- Valid government-issued IDs
If you previously held a longer tenure at a prior employer and recently switched jobs, providing documentation of your previous employment history can strengthen your case by showing an overall track record of stable income.
Yes — significantly. Adding a co-borrower who is a regular, permanently employed individual with at least 1 to 2 years of tenure (or a self-employed borrower with 2+ years of documented business income) can substantially improve your application. Many banks will evaluate the combined income and employment profile of all co-borrowers, and a strong co-borrower can offset the risk flagged by your probationary status.
Common co-borrowers include a spouse, a parent, or a sibling. The co-borrower must be willing to have their credit history evaluated and will be equally liable for the loan repayment. If your spouse is regularly employed and earns a stable income, structuring them as the primary borrower with you as co-borrower may actually be a more viable approach — depending on how each bank's policy treats employment status at the primary borrower level. A Nook mortgage specialist can help you determine the optimal borrower structure for your situation.
The potential savings from refinancing are real and meaningful, which makes the timing question important. If you are currently paying 8.5% per annum on a loan balance of 3,500,000 pesos with 20 years remaining, your monthly amortization is approximately 30,400 pesos. Refinancing at 5.99% per annum — the best rate currently available through Nook — would bring your monthly payment down to approximately 25,100 pesos, a saving of around 5,300 pesos per month or roughly 63,600 pesos per year.
If your probationary period is 6 months, waiting to refinance would cost you approximately 31,800 pesos in potential savings during that window. That is a meaningful amount, but attempting to refinance prematurely and being declined can trigger hard credit inquiries and delay your ability to reapply. In most cases, the mathematically sound strategy is to wait until you have passed probation and received your regularization documents, then move quickly to lock in the best available rate. Use Nook's free tools now to understand what rate you qualify for so you are ready to act the moment you become eligible.
Congratulations — this is when the door genuinely opens. Once you receive your Certificate of Regularization or a COE confirming regular employment status, you can begin preparing your refinance application. Most banks require a minimum of 1 year with your current employer for regular employees, though some lenders will accept 6 months of regular (post-probation) employment especially if you also have prior employment history in the same industry or profession.
It is worth noting that your regularization date — not your start date — is what matters for most bank calculations. So if you were on probation for 5 months before being regularized, the clock for most banks starts from your regularization date. Gather your updated COE, your most recent payslips reflecting your regular employee status, and your 3 to 6 months of bank statements. Submitting a complete application from day one reduces processing time and improves your chances of approval at the rate you want.
The probationary employment restriction is specific to salaried employees and does not apply to self-employed individuals or business owners. However, self-employed borrowers face their own set of documentation requirements. Banks typically require at least 2 years of continuous business operation, supported by audited financial statements, ITR with BIR stamp, business registration documents (DTI or SEC), and bank statements showing business income.
If you recently left employment to start your own business, you may face a waiting period before qualifying — even if your new income is higher than your old salary. Banks need to see a track record of business income before they will underwrite a refinance based on self-employment. If you are in this situation, a Nook specialist can advise on the minimum documentation threshold different banks require and help you time your application to maximize your approval chances.
The best refinance rate currently available through Nook is 5.99% per annum. This rate is available to borrowers who meet the full qualification criteria — regular employment with sufficient tenure, strong credit history, loan-to-value ratio within the bank's acceptable range (typically below 70 to 80%), and a loan amount and property type that fit the lender's product guidelines.
Most Filipino homeowners carrying existing home loans are currently paying between 7% and 10% per annum — rates that were locked in during a higher interest rate environment. The gap between 5.99% and even 8% represents very significant savings over the life of a loan. For a 5,000,000 peso loan over 20 years, the difference between 8% and 5.99% is approximately 5,600 pesos per month — or over 1,340,000 pesos across the full loan term. Nook's service is completely free to borrowers; we are compensated by the banks, not by you. You can explore how refinancing from a government lender to a private bank works by reading our guide on Pag-IBIG home loan refinancing to private banks.
Nook is the Philippines' first digital mortgage broker — we work with multiple banks and lenders simultaneously to find the best refinance option for your specific profile. For borrowers with non-standard employment situations like probationary status, this matters more than usual. Rather than applying to banks one by one (each triggering a hard credit inquiry), Nook assesses your full profile first and identifies which lenders are most likely to approve your application and at what rate.
If you are currently on probation, Nook can give you an honest assessment of your options right now and help you build a refinancing plan for the moment you become eligible. If you are dealing with other complicating factors alongside your employment situation, our team has experience navigating complex cases — you may also find our guide on refinancing a home loan with bad credit in the Philippines useful reading. Our service is 100% free to you as a borrower. Submit your details and a Nook specialist will reach out to walk you through your options.