Current Mortgage Interest Rates in the Philippines (2024)
If you have a home loan in the Philippines, the interest rate you pay has a direct and lasting impact on your monthly budget and total cost of ownership. Yet most Filipino homeowners have never compared their current rate against what's available in the market today — and that gap can cost hundreds of thousands of pesos over the life of a loan.
This guide breaks down current mortgage interest rates across Philippine banks, explains how rates are structured, and shows you exactly how to find out if you're overpaying.
What Are the Current Mortgage Rates in the Philippines?
Philippine home loan interest rates are not fixed for the entire loan term. Banks typically offer a fixed rate for an initial period (1, 2, 3, 5, or 10 years), after which the rate reprices based on market benchmarks. Here is a general overview of the fixed-rate ranges you'll find from major lenders in 2024:
- 1-year fixed: approximately 6.50% – 8.00% p.a.
- 2-year fixed: approximately 6.75% – 8.25% p.a.
- 3-year fixed: approximately 7.00% – 8.50% p.a.
- 5-year fixed: approximately 7.25% – 9.00% p.a.
- 10-year fixed: approximately 7.75% – 9.50% p.a.
These are indicative ranges. The exact rate you qualify for depends on your credit profile, loan-to-value ratio, loan amount, chosen bank, and the property type. The best refinance rate currently available through Nook is 5.99% p.a. — which is meaningfully below what most homeowners are paying today.
How Rates Differ by Bank
Each bank in the Philippines prices its mortgage products differently. Here is a snapshot of the general rate positioning of major lenders:
BDO Unibank
BDO is one of the most active home loan lenders in the country. Their rates for existing borrowers who have been on the same loan for several years can be significantly higher than their advertised new-loan rates. If your BDO loan is more than two years old and has already repriced, it's worth checking whether a BDO home loan refinance could reduce your monthly payment.
BPI (Bank of the Philippine Islands)
BPI offers competitive introductory rates but their repricing rates — the rate your loan reverts to after the fixed period — can climb considerably. Many BPI borrowers find themselves surprised when their monthly amortization increases after the first fixed period ends.
Security Bank
Security Bank has been aggressive in the refinance market and often offers attractive rates to borrowers switching from other banks. If you currently hold a loan with another lender, exploring a Security Bank housing loan refinance may be a practical move.
Metrobank
Metrobank targets mid-to-upper market borrowers and generally offers competitive rates for larger loan amounts. Their processing timelines and documentary requirements are more stringent than some smaller banks.
PNB, RCBC, and Other Mid-Tier Banks
Philippine National Bank and Rizal Commercial Banking Corporation both actively compete for refinance business and have been known to offer competitive rates to attract borrowers from the big three. If your current rate is above 8%, comparing offers from these banks through Nook can yield significant savings.
Why Most Homeowners Are Overpaying
The hard truth is that the Philippine mortgage market is structured in a way that rewards new borrowers and penalizes existing ones. Here's why:
- Repricing after the fixed period: When your initial fixed-rate period ends, your bank assigns a new rate — often based on an internal benchmark plus a spread. This rate is rarely as competitive as what a new borrower would receive.
- No automatic loyalty rewards: Unlike some markets, Philippine banks do not automatically pass on lower rates to loyal, on-time borrowers. You need to actively negotiate or refinance.
- Lack of comparison tools: Until recently, there was no easy way for Filipino homeowners to compare rates across multiple banks simultaneously. Most borrowers simply accept whatever rate their bank assigns them at repricing.
The result? The average homeowner in the Philippines is paying between 7% and 10% p.a. on their home loan, while rates as low as 5.99% p.a. are available in the market today.
How Much Could You Save by Refinancing?
Let's look at a concrete example. Suppose you have a remaining loan balance of 4,000,000 pesos with 20 years remaining on your term, and your current rate is 8.50% p.a.
- Current monthly amortization at 8.50%: approximately 34,714 pesos
- Monthly amortization at 5.99%: approximately 28,617 pesos
- Monthly savings: approximately 6,097 pesos
- Total savings over 20 years: approximately 1,463,280 pesos
That's over 1.4 million pesos in savings — simply by switching to a lower rate. Even accounting for refinancing fees (which typically range from 30,000 to 80,000 pesos), the net benefit is substantial for most borrowers.
What Determines Your Mortgage Rate?
Banks don't offer the same rate to every applicant. Several factors influence the rate you'll be offered:
Loan-to-Value (LTV) Ratio
The LTV ratio is your outstanding loan balance divided by the current appraised value of your property. A lower LTV (meaning you have more equity) typically earns you a lower rate, because the bank faces less risk. Borrowers with an LTV below 70% generally qualify for the most competitive rates.
Loan Amount
Larger loans often attract slightly better rates because they generate more interest income for the bank, making them worth competing for. Loan amounts above 5,000,000 pesos may qualify for preferential pricing at certain lenders.
Borrower Profile
Your employment status, income stability, length of employment, credit history, and existing relationship with the bank all influence your rate. Salaried employees of large corporations or government employees tend to qualify more easily than self-employed borrowers, though rates may be similar once approved.
Property Type and Location
Banks price risk based on the property securing the loan. Condominium units in Metro Manila, house-and-lot properties in established subdivisions, and properties with clean titles are viewed most favorably. Properties in more remote areas or with title issues may face higher rates or outright rejection.
Fixed-Rate Period Chosen
Shorter fixed periods typically come with lower starting rates. A 1-year fixed rate will almost always be lower than a 5-year fixed rate from the same bank. The trade-off is repricing risk — your rate will change sooner.
How to Get the Best Mortgage Rate in the Philippines
Here are the most effective strategies for securing the lowest possible mortgage rate:
1. Compare Multiple Banks Simultaneously
Never accept the first rate you're offered. Different banks have different pricing strategies, and the spread between the best and worst rates for the same borrower can easily be 1.5% to 2.5%. On a 5,000,000 peso loan over 20 years, that difference is worth over 1,500,000 pesos.
2. Use a Mortgage Broker
A mortgage broker like Nook submits your application to multiple banks at once and presents you with competing offers. Because Nook's service is completely free to borrowers (brokers are compensated by the bank that wins your business), there is no cost to getting multiple competitive offers in one place.
3. Refinance When Your Fixed Period Ends
The best time to refinance is just before or just after your current fixed-rate period ends, because you can switch without early repayment penalties. If your rate is about to reprice upward, acting early can lock in a better rate before the market moves against you.
4. Improve Your LTV Before Applying
If your property has appreciated significantly since you purchased it, a fresh appraisal could lower your LTV ratio and qualify you for a better rate tier. Make sure your chosen bank uses an independent appraisal rather than relying on your original purchase price.
5. Consider the Total Cost, Not Just the Rate
When comparing offers, factor in all fees — appraisal fees, documentary stamp tax, mortgage registration fees, and bank processing charges. A rate that appears lower by 0.25% may not be the better deal if it comes with significantly higher upfront costs.
Is Now a Good Time to Refinance?
For most Filipino homeowners currently paying above 7.5% p.a., the answer is yes. While global interest rates have been elevated in recent years, competition among Philippine banks for mortgage refinance business has kept refinance rates competitive. The 5.99% p.a. rate currently available through Nook represents a meaningful opportunity for borrowers locked into older, higher-rate loans.
If your current rate is above 8%, if your fixed period has already ended or is ending within the next 12 months, or if your loan balance is above 2,000,000 pesos with more than 10 years remaining, it is worth getting a free refinance assessment to see exactly how much you could save.
Next Steps
Getting a mortgage rate comparison through Nook takes less than five minutes and is entirely free. You'll receive actual rate offers from multiple banks — not estimates — so you can make an informed decision based on real numbers. There is no obligation to proceed, and your credit score is not affected by the initial inquiry.
The Philippine mortgage market has never been more competitive for borrowers who are willing to shop around. The homeowners who benefit most are those who take the time to compare — and act before their next repricing date locks them into another cycle of above-market rates.