Switching jobs is exciting — but if you're also hoping to refinance your home loan, the timing can feel stressful. Most Philippine banks treat probationary employees differently from regular or tenured employees, which can affect your chances of approval and the rates you're offered. The good news is that being on probation doesn't automatically disqualify you, and there are real strategies to improve your odds.
This FAQ guide breaks down exactly what Philippine banks look for when you apply to refinance during a probationary period, which lenders are more flexible, and what you can do right now to strengthen your application. If you're unsure where to start, Nook can compare multiple lenders on your behalf — for free — so you don't have to guess which bank is most likely to say yes to your situation.
Yes, it is possible — but it is more challenging than refinancing as a tenured or regularised employee. Philippine banks assess refinance applications heavily on employment stability and income certainty. Probationary employees are seen as a higher risk because their employment has not yet been confirmed. That said, some banks will still process your application during probation, particularly if you have a strong repayment history on your existing home loan, a competitive salary, a well-known employer, and minimal other debts. Approval is case-by-case, and having a mortgage broker like Nook compare lenders on your behalf significantly improves your chances of finding one that fits your profile.
Banks in the Philippines use employment status as a proxy for income stability and repayment capacity. A probationary employee — typically within the first 3 to 6 months of a new job — can legally be terminated without the same protections afforded to regular employees under the Labor Code. This creates uncertainty for the lender: if your employment ends during the loan term, your ability to service the debt is immediately at risk. Because of this, banks may require a longer employment history (often a minimum of 1 to 2 years with the same employer), or they may offer less favourable terms or lower loan-to-value ratios to compensate for the perceived risk. Some banks will simply decline applications from probationary employees outright.
Policies vary across institutions and change regularly, so it's important to check current requirements directly or through a broker. Generally speaking, banks with more flexible credit policies — such as Security Bank, RCBC, and EastWest Bank — have historically shown more willingness to evaluate applications holistically rather than applying a rigid employment-tenure cutoff. BDO, BPI, and Metrobank tend to have stricter employment tenure requirements, typically preferring at least 1 to 2 years of continuous employment. Pag-IBIG (HDMF) has its own qualification criteria and may be a consideration depending on your loan setup — you can read more about Pag-IBIG home loan refinancing options and how they compare to private banks. The fastest way to know which lender suits your current employment status is to let Nook run a soft comparison across all major banks at once.
On top of the standard refinance document requirements, you will likely need to provide stronger income and employment proof to compensate for your probationary status. Expect to prepare: a copy of your employment contract clearly stating your start date, position, and salary; your Certificate of Employment (COE) from your new employer; your most recent 1 to 3 months of payslips; your ITR (Income Tax Return) from your previous employer for the most recent filing year; bank statements showing consistent credit behaviour and savings; and your existing home loan statements showing a clean repayment record. If your new employer is a large, reputable company or a multinational, having your HR confirm your employment in writing can strengthen your application considerably.
Absolutely. A higher salary can partially offset the risk that banks associate with probationary employment. If your new role comes with a significant pay increase, this demonstrates upward income trajectory, which lenders view positively. Most Philippine banks require that your total monthly loan obligations — including the refinanced home loan — do not exceed 30% to 40% of your gross monthly income. For example, if your new monthly salary is 120,000 pesos, your maximum allowable monthly loan payment would typically be between 36,000 and 48,000 pesos. Banks may also look at whether your salary is being credited directly to their institution, as this makes your income more verifiable and may give you preferential treatment. Providing a formal offer letter or employment contract that clearly states a fixed monthly gross compensation will also help.
If your probationary period is only 1 to 3 months away from completion, waiting until you are regularised is generally the safest strategy. Banks will see you as a significantly lower-risk borrower once your employment is confirmed, which can unlock better interest rates and higher loan amounts. The difference in the rate you're offered as a regular employee versus a probationary employee could be meaningful — and with refinance rates as low as 5.99% p.a. currently available through Nook, even a small rate improvement translates to large savings over a 15 to 25 year loan term. That said, if your current home loan's fixed-rate period is about to reprice to a much higher rate, the urgency of locking in a lower rate may outweigh the benefit of waiting. Speak to a Nook advisor to model both scenarios for your specific loan amount and timeline.
Yes — this is one of the most effective ways to strengthen a refinance application when your own employment status is uncertain. If your spouse, a parent, or a sibling is a regular or tenured employee with a stable income, adding them as a co-borrower (sometimes called a co-maker) allows the bank to assess the combined financial profile of both applicants. This can help meet income requirements and offset the perceived risk of your probationary status. Key requirements for a co-borrower in the Philippines typically include: Filipino citizenship (or eligible visa status), being within the borrowing age range (usually up to 65 years old at loan maturity), and having a verifiable, stable income. Note that the co-borrower becomes equally liable for the debt, so this decision should be made carefully and discussed openly with the person you're adding to the application.
Unfortunately, most Philippine banks count employment tenure from your current employer's start date, not your total years in the workforce. When you change employers, your tenure effectively resets to zero in the eyes of most lenders. However, some banks do consider your total professional experience in the same industry or field when assessing your overall creditworthiness. For instance, if you are a licensed engineer with 10 years of experience who has just moved to a new engineering firm, some lenders may view the probability of continued employment more favourably than they would for someone entering a completely new industry. It is also worth noting that if you were previously with your old employer for many years and maintained a perfect repayment record on your home loan throughout, this positive credit history is visible in your credit report and can support your application even during probation.
Refinancing as a self-employed individual or freelancer in the Philippines is a separate and more complex scenario. Banks typically require self-employed borrowers to show at least 2 years of audited financial statements, consistent business income, and filed ITRs for the most recent two tax years. If you have just recently transitioned to self-employment, you will almost certainly need to wait until you can demonstrate a longer and more consistent income history before most banks will approve a refinance. In the meantime, focus on keeping your existing loan payments current and building your financial documentation. If your credit history has other challenges in addition to employment status, you may find our guide on refinancing with bad credit in the Philippines useful for understanding the broader landscape of what lenders evaluate.
Nook is the Philippines' first digital mortgage broker, and navigating situations exactly like yours — where one bank might say no but another might say yes — is precisely where a broker adds the most value. Rather than applying to multiple banks individually (each of which may run a hard credit inquiry), Nook assesses your full financial profile and matches you with the lenders most likely to approve your application given your current employment status. The service is completely free for borrowers — Nook is compensated by the bank when your loan is successfully placed. You simply share your details once, and Nook handles the comparison, paperwork guidance, and lender communication on your behalf. With refinance rates currently as low as 5.99% p.a. available through Nook, even if you are on probation, it is worth finding out whether you qualify now or getting a clear roadmap for when you will. Start your free assessment at nook.com.ph.