Fixed Mortgage Rates in the Philippines 2026: The Complete Guide
If you have a home loan in the Philippines, you've almost certainly encountered the words "fixed rate period" in your loan documents. But what does fixing your mortgage rate actually mean, how long can you lock in for, and — most importantly — should you do it right now in 2026? This guide answers all of that with real numbers, bank-by-bank context, and a clear framework for making the decision.
What Is a Fixed Mortgage Rate?
A fixed mortgage rate is an interest rate that stays the same for an agreed period — typically 1, 2, 3, 5, or 10 years — regardless of what happens to market interest rates during that time. After the fixed period ends, your rate is repriced, usually to whatever the bank's prevailing rate is at that point.
In the Philippines, almost all home loans are technically "fixed" for an initial period and then subject to repricing. This is different from many Western markets where a truly variable rate can change month to month. Here, the question isn't really "fixed vs. variable" — it's how long do you want to lock in your rate?
The Repricing Risk Every Filipino Borrower Faces
Here's the risk most homeowners don't fully appreciate: when your fixed period ends, your bank can reprice your loan at a significantly higher rate. If you took out a loan in 2019 at 5.5% fixed for 3 years, you would have faced repricing in 2022 — right as rates were rising globally. Many borrowers saw their monthly payments jump by 15–25% overnight. That's a risk worth planning for.
Current Fixed Mortgage Rates in the Philippines (2026)
Philippine banks typically offer tiered fixed-rate periods. The longer you lock in, the higher the rate — because the bank is taking on more interest rate risk on your behalf. Here's a general picture of where rates sit across major lenders in 2026:
- 1-year fixed: approximately 6.50% – 7.75% p.a.
- 2-year fixed: approximately 6.75% – 8.00% p.a.
- 3-year fixed: approximately 7.00% – 8.25% p.a.
- 5-year fixed: approximately 7.25% – 8.75% p.a.
- 10-year fixed: approximately 7.75% – 9.50% p.a.
These are indicative ranges. Your actual rate will depend on your loan amount, loan-to-value ratio, the bank you choose, and your credit profile. If your current rate sits anywhere in — or above — these ranges, it's worth checking whether you can do better. Through refinancing, the best rate currently available via Nook is 5.99% p.a. — a full 1–3 percentage points below what many homeowners are currently paying.
For a broader look at where all major banks stand today, see our guide to home loan interest rates in the Philippines for 2026.
Which Banks Offer the Best Fixed Rate Deals?
Each of the major Philippine banks structures its fixed-rate offering differently, and the "best" deal depends on your priorities.
BDO Unibank
BDO is the country's largest bank and typically offers competitive rates on shorter fixed periods (1–3 years). Their rates are often attractive for borrowers with larger loan amounts (above 5,000,000 pesos) and strong repayment history. Repricing terms can be less favorable once the fixed period ends.
BPI (Bank of the Philippine Islands)
BPI is known for flexibility, offering fixed periods ranging from 1 to 20 years on select products. Their longer fixed-period rates (5–10 years) are competitive relative to peers, making them worth comparing if rate certainty over the medium term is your priority.
Metrobank
Metrobank offers solid fixed-rate products and tends to be competitive in the 3–5 year range. They're also active in refinancing, which can work in your favor if you're looking to switch.
Security Bank
Security Bank has historically been one of the more aggressive lenders for refinancing, often offering promotional rates to attract borrowers switching from other banks. Their 1–3 year fixed rates are worth getting a quote on.
PNB, RCBC, UnionBank, and EastWest Bank
These mid-tier banks sometimes offer sharper rates to compete with the top four. RCBC and EastWest in particular have been known to offer below-market teaser rates for the first fixed period. Always read the repricing clause carefully.
Pag-IBIG (HDMF)
Pag-IBIG offers fixed rates that are legislatively capped and tend to be lower than commercial banks for qualifying members. If you're eligible for Pag-IBIG financing, it's almost always worth including in your comparison. Their terms also tend to allow longer fixed periods.
A Real Example: What Fixing (or Not Fixing) Costs You
Let's make this concrete. Assume you have an outstanding home loan balance of 4,000,000 pesos with 20 years remaining.
Scenario A — You stay at your current bank at 8.50%:
Estimated monthly payment: approximately 34,720 pesos
Total interest over 20 years: approximately 4,332,800 pesos
Scenario B — You refinance and lock in at 5.99% for 5 years:
Estimated monthly payment: approximately 28,640 pesos
Monthly saving: approximately 6,080 pesos
Saving over 5-year fixed period: approximately 364,800 pesos
That's over 364,000 pesos saved just during the fixed period — before accounting for the fact that your lower rate also means more of each payment goes toward reducing your principal balance. Use our home loan refinance calculator to run these numbers with your actual loan details.
Should You Fix for a Shorter or Longer Period?
This is the central question, and the honest answer is: it depends on your circumstances and your view of where rates are heading. Here's a framework to think it through.
Choose a Shorter Fixed Period (1–3 Years) If:
- You expect interest rates to fall over the next 2–3 years and want the flexibility to reprice at a lower rate
- You plan to sell the property or pay off the loan within 3–5 years
- You want the lowest possible rate right now, and short-term fixed rates are meaningfully lower
- You're comfortable with repricing risk and can absorb a rate increase if it happens
Choose a Longer Fixed Period (5–10 Years) If:
- You want certainty in your monthly budget and cannot absorb a significant rate increase
- You believe rates may rise over the medium term
- You plan to keep the property long-term and want to reduce financial uncertainty
- The premium for a longer fixed period is small relative to the peace of mind it provides
The Rate Certainty Premium: Is It Worth Paying?
Locking in for 5 years instead of 1 year typically costs 0.50–1.00 percentage point more in rate. On a 4,000,000 peso loan, that's roughly 1,670–3,330 pesos per month. Whether that premium is worth it depends entirely on your personal risk tolerance and financial cushion. There's no universally right answer — only the right answer for your situation.
Watch Out for These Fixed-Rate Traps
Not all "fixed rate" offers are as good as they first appear. Here are the most common pitfalls Filipino borrowers encounter:
- Teaser rates with steep repricing clauses: Some banks advertise an attractive first-year rate but include a clause that allows them to reprice aggressively after the fixed period. Always ask: "What is the repricing formula after my fixed period ends?"
- High prepayment penalties during the fixed period: Many banks charge 2–5% of the outstanding balance if you prepay or refinance during your fixed window. Factor this into any refinancing calculation.
- Lock-in periods vs. fixed periods: These are different things. Your fixed period is when your rate stays the same. Your lock-in period is when you can't leave without a penalty. Some banks have a lock-in period that extends beyond the fixed period — meaning you're trapped at a repriced rate you can't escape.
- Floating rate clauses disguised as fixed: Read the fine print. Some products allow the bank to adjust rates in response to BSP policy changes even within a "fixed" period.
Refinancing as a Fixed-Rate Strategy
One of the most powerful and underused strategies in the Philippines is using refinancing not just to lower your rate, but to strategically reset your fixed period. If your current fixed period is about to expire and your bank's repricing offer is unattractive, refinancing to a new bank lets you lock in a fresh fixed period at a competitive rate — potentially saving hundreds of thousands of pesos over the new fixed window.
The key is timing. Ideally, you want to start the refinancing process 3–6 months before your current fixed period ends to avoid a gap where you're on an unfavorable repriced rate. Philippine bank refinancing approvals typically take 30–60 days, sometimes longer, so leaving enough lead time is important.
Before you commit to refinancing, it's worth calculating your break-even point — the number of months it takes for your monthly savings to outweigh the upfront costs of switching. Our refinance break-even calculator makes this straightforward.
Key Takeaways: What to Do Right Now
- Check your loan documents today: when does your current fixed period end, and what is the repricing formula?
- Get quotes from at least 3 banks — don't rely on your existing lender alone
- Compare not just the headline rate but the lock-in terms, prepayment penalties, and repricing formula
- If your current rate is above 7%, you are almost certainly overpaying — the best rate available through Nook right now is 5.99% p.a.
- Start the process early. Refinancing takes time, and rushing leads to mistakes
Nook is the Philippines' first digital mortgage broker. We compare home loan options across the country's major banks at no cost to you, handle the paperwork, and help you lock in the best fixed rate available for your situation. There's no fee, no obligation, and no reason not to find out what you could save.