Home Equity Loan Philippines 2026: Which Banks Offer It and How to Apply

What Is a Home Equity Loan in the Philippines?

A home equity loan lets you borrow money using your property as collateral — specifically, the portion of your home that you already own outright. If your property is worth 5,000,000 pesos and you still owe 2,000,000 pesos on your mortgage, you have 3,000,000 pesos in equity. A home equity loan lets you tap into that value to access cash for large expenses like home renovations, tuition fees, a business, or debt consolidation.

In the Philippines, home equity loans go by several names depending on the bank: home equity loan, equity financing, loan against property, or a home loan top-up. The mechanics are similar across products — the bank places a lien on your property, you receive a lump sum, and you repay it in fixed monthly installments over an agreed term.

This guide covers which Philippine banks offer home equity loans in 2026, how much you can borrow, what rates to expect, and how to apply — plus a smarter alternative many homeowners are using instead.

Which Banks Offer Home Equity Loans in the Philippines?

Not every major bank in the Philippines advertises a dedicated home equity loan product, but several offer equivalent facilities under different names. Here is what is currently available:

BDO Unibank — Home Equity Loan

BDO offers one of the most accessible home equity loan products in the country. You can borrow up to 70% of the appraised value of your property minus any existing mortgage balance. Loan amounts typically start at 500,000 pesos, and terms range from 1 to 10 years. Interest rates are fixed for the first few years and then float with market rates. BDO requires that your property be fully paid or have an existing BDO mortgage.

BPI — Home Equity Loan / Home Loan Redrawn

BPI's home equity offering allows existing BPI mortgage holders to borrow additional funds against the equity built up in their home. The maximum loan-to-value (LTV) ratio is typically 70%, and terms of up to 10 years are available. BPI is known for competitive rates and a relatively streamlined application process for existing clients.

Security Bank — Home Equity / Loan Against Property

Security Bank offers a loan against property facility for both residential and commercial real estate. LTV ratios go up to 60% of appraised value, and loan terms can extend to 10 years. This product is available even if the property is already mortgage-free, making it popular for homeowners who have fully paid their homes and want to unlock capital.

Metrobank — Home Equity Loan

Metrobank provides home equity financing to both existing mortgage clients and new applicants who own real property. Terms of up to 10 years are available with LTV ratios up to 70% for residential properties. Metrobank is known for accepting a wider range of property types including townhouses, condominiums, and vacant lots in some cases.

RCBC — Home Equity Loan

RCBC offers home equity loans with competitive terms, particularly for clients who already have an RCBC mortgage. Their product allows borrowing of up to 70% of the property's appraised value and offers flexible repayment terms. RCBC also has relatively faster processing times compared to some larger banks.

EastWest Bank and PNB

Both EastWest Bank and PNB offer loan-against-property products that function similarly to home equity loans. These can be worth exploring if you have an existing relationship with these banks or if your property is located in an area where they have strong appraisal networks.

Pag-IBIG (HDMF)

Pag-IBIG offers a Multi-Purpose Loan (MPL) and a Calamity Loan for members, but these are unsecured and limited in amount (typically up to 80% of your total Pag-IBIG savings). For larger amounts, Pag-IBIG offers a Home Loan Takeout facility, but not a true home equity product. If you currently have a Pag-IBIG housing loan and want larger loan amounts, many borrowers find it more effective to refinance their Pag-IBIG loan to a private bank that can offer both a lower rate and access to equity.

How Much Can You Borrow?

The amount you can borrow depends on three factors: your property's appraised value, your outstanding mortgage balance (if any), and the bank's maximum LTV ratio. Here is how the calculation works:

• Step 1: Get the bank's appraised value of your property (not the market value you have in mind — banks appraise conservatively)
• Step 2: Multiply by the LTV ratio (usually 60%–70%)
• Step 3: Subtract any outstanding mortgage balance

Example: Your property is appraised at 6,000,000 pesos. The bank offers 70% LTV. You still owe 1,500,000 pesos on your existing mortgage.

• 6,000,000 x 70% = 4,200,000 pesos maximum lendable amount
• 4,200,000 - 1,500,000 = 2,700,000 pesos available to you as a home equity loan

Most banks set a minimum loan amount of 500,000 pesos and a practical ceiling of around 10,000,000 pesos for residential properties, though higher amounts are possible for high-value assets.

What Interest Rates Should You Expect?

Home equity loan rates in the Philippines typically range from 7% to 12% per annum depending on the bank, the loan term, and your credit profile. Shorter fixed-rate periods (1–3 years) tend to carry lower initial rates, while longer terms carry higher rates to compensate the bank for rate risk.

It is important to understand the difference between a fixed rate and a repricing rate. Many Philippine bank loans advertise an attractive fixed rate for the first 1, 3, or 5 years — after which the rate reprices based on market benchmarks. Always ask what the repricing rate will be and factor it into your long-term budget.

Home Equity Loan vs. Refinancing: Which Is Right for You?

Many homeowners reach for a home equity loan when they actually have a better option available: refinancing their existing mortgage. Here is how the two compare:

When a Home Equity Loan Makes Sense

• Your property is fully paid and you want to access cash without selling
• You need funds for a specific purpose (renovation, tuition, business capital) and want a separate loan facility
• You are satisfied with your existing mortgage rate and terms

When Refinancing Makes More Sense

• Your current mortgage rate is above 7% and you could save significantly by switching banks
• You need to access equity and lower your monthly payment at the same time
• You want to consolidate your mortgage and additional borrowing into one simplified loan

Consider this real example: A homeowner in Quezon City has a 4,000,000 peso mortgage at 9% per annum with 18 years remaining. Their monthly payment is approximately 36,050 pesos. By refinancing with Nook at 5.99% per annum, their new monthly payment drops to approximately 27,700 pesos — a saving of over 8,300 pesos per month, or nearly 100,000 pesos per year. If they also needed 500,000 pesos for a home renovation, a cash-out refinance at the new lower rate could give them that money while still reducing their monthly outgoings. For a full walkthrough of how this works, see our complete guide to refinancing your housing loan in the Philippines.

Documents Required for a Home Equity Loan Application

While requirements vary by bank, you will typically need the following:

• Completed application form
• Valid government-issued IDs (2 copies)
• Proof of income: latest 3 months payslips (employed) or ITR + audited financial statements (self-employed)
• Certificate of employment (for employed applicants)
• Transfer Certificate of Title (TCT) or Condominium Certificate of Title (CCT) — original or certified true copy
• Latest tax declaration and real property tax receipts
• Lot plan and vicinity map
• If there is an existing mortgage: latest statement of account from your current bank

The bank will also conduct an independent appraisal of your property, which typically costs between 3,000 and 8,000 pesos and is usually for the applicant's account.

The Application Process: Step by Step

Step 1: Assess Your Equity Position

Before approaching a bank, get a realistic sense of your property's current market value and calculate your equity. Online property listings in your area can give you a rough benchmark, but remember that bank appraisals are typically 10%–20% more conservative.

Step 2: Compare Lenders

Do not apply with just one bank. Rates, LTV ratios, processing fees, and turnaround times vary significantly. BDO, BPI, Security Bank, and Metrobank are all worth approaching for competing quotes.

Step 3: Submit Your Application

Submit a complete application to your chosen bank(s). Incomplete applications are the number one cause of delays. Make sure all documents are current — income documents older than 3 months are typically rejected.

Step 4: Property Appraisal

The bank will arrange an appraisal of your property. This usually takes 5–15 business days. The appraised value will determine your final loan amount.

Step 5: Credit Evaluation and Approval

Once the appraisal is done, the bank's credit team evaluates your full application. Approval timelines range from 2 weeks to 6 weeks depending on the bank and complexity of your case.

Step 6: Loan Signing and Release

Upon approval, you sign the loan documents and the funds are disbursed — typically by check or direct credit to your account.

Fees to Watch Out For

Home equity loans come with costs beyond the interest rate. Before signing, make sure you understand:

• Processing fee: Usually 0.5%–1% of the loan amount
• Appraisal fee: 3,000–8,000 pesos
• Notarial fee: Varies by location
• Documentary stamp tax: 1.5% of the loan amount (on the mortgage document)
• Registration fee: Based on Registry of Deeds schedule
• Annual fee: Some banks charge an ongoing fee for maintaining the credit facility

Add these costs up before comparing products. A bank offering a slightly lower interest rate may end up being more expensive in total if their processing fees are high.

A Smarter Way to Unlock Your Home's Value

If you are currently paying above 7% on your mortgage and you also want to access equity, the smartest move is often a cash-out refinance — refinancing your existing loan for a higher amount at a lower rate. You pay off your old mortgage, receive the difference in cash, and end up with one loan at a better rate than you started with.

Nook helps Filipino homeowners do exactly this. As the Philippines' first digital mortgage broker, Nook compares offers from multiple banks on your behalf and finds you the lowest available rate — currently as low as 5.99% per annum. The service is completely free to borrowers. Whether you are looking for a straight refinance or a cash-out refinance to access equity, Nook's specialists can guide you through every step.