Home Equity Loan Philippines: Which Banks Offer It & How Much Can You Borrow?

What Is a Home Equity Loan in the Philippines?

A home equity loan allows you to 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 and you still owe 2,000,000 on your mortgage, you have 3,000,000 in equity. A home equity loan lets you tap into that value without selling your home.

In the Philippines, home equity loans are sometimes called equity release loans, cash-out refinancing, or simply a loan against property (LAP). The terminology varies by bank, but the core concept is the same: your home secures the loan, and you receive a lump sum you can use for almost any purpose — home renovation, tuition fees, medical expenses, business capital, or debt consolidation.

This guide covers which Philippine banks offer home equity products in 2026, how much you can borrow, what the typical rates look like, and — crucially — how a home equity loan compares to refinancing your existing mortgage.

Which Banks Offer Home Equity Loans in the Philippines?

Not every Philippine bank markets a product explicitly called a "home equity loan," but several offer equivalent products under different names. Here is what the major lenders currently provide:

BDO Unibank — Loan Against Real Estate Property

BDO offers a loan secured by residential or commercial real estate. Loan amounts typically start at 500,000 and can reach up to 70% of the appraised property value. Terms of up to 10 years are available for equity loans (separate from their housing loan products). Interest rates are fixed for a repricing period, usually starting around 7.5% to 9% p.a. depending on the term.

BPI (Bank of the Philippine Islands) — Loan Against Property

BPI's loan against property allows homeowners to borrow a lump sum using a fully or partially paid property as collateral. Minimum loan amount is typically 500,000, with a maximum of up to 60% of the appraised value. Loan terms run up to 10 years. BPI is known for a relatively streamlined application process, and existing BPI mortgage holders may qualify for faster processing. If you are already a BPI borrower, also check out the complete BPI housing loan requirements checklist to understand what documents you will need.

Metrobank — Home Equity / Loan Against Property

Metrobank offers a loan against property for both residential and commercial real estate. Borrowers can access up to 60% to 70% of appraised value depending on property type and location. Terms of up to 10 years are standard. Rates typically range from 7% to 9.5% p.a. fixed for an initial period.

Security Bank — Property Equity Loan

Security Bank markets a specific equity product for homeowners. They offer up to 60% of appraised value on residential properties, with loan amounts from 500,000 upward. Security Bank is competitive on processing time and is one of the few banks that publicly advertises equity loan rates on their website.

RCBC — Home Equity / Salary Loan Secured by Property

RCBC offers loan-against-property products with amounts starting at 300,000. Loan-to-value (LTV) ratios typically go up to 60% of appraised value. Terms are generally shorter than a standard housing loan — expect 5 to 10 years.

PNB, Chinabank, and EastWest Bank

These banks also offer real estate-backed loans, though product names and terms vary. PNB and Chinabank tend to focus more on their standard housing loan and refinancing products. EastWest Bank has been competitive on equity loan rates for borrowers with strong credit profiles. It is always worth getting a quote from multiple lenders since rates and LTV limits differ significantly.

Pag-IBIG (HDMF) — Multi-Purpose Loan and Housing Loan Refinancing

Pag-IBIG does not offer a traditional home equity loan, but their Multi-Purpose Loan (MPL) and Calamity Loan allow members to borrow against their Pag-IBIG savings. More relevantly, Pag-IBIG's housing loan refinancing program lets members with existing mortgages switch to Pag-IBIG, often at lower rates — which can free up cash flow in a way that functions similarly to an equity product. Pag-IBIG housing loan rates start at 5.375% p.a. for a 1-year fixed period, making them one of the most competitive lenders in the market.

How Much Can You Borrow?

The amount you can access through a home equity loan depends on three main factors:

• Appraised property value: Banks will commission their own appraisal. Do not assume the appraised value will match the market price or your purchase price — it is often lower.
• Loan-to-value (LTV) ratio: Most Philippine banks lend up to 60% to 70% of appraised value on equity products. Some go higher for very creditworthy borrowers.
• Your existing mortgage balance: If you have an outstanding home loan, the bank will subtract that from the available equity. Your net borrowable amount is the LTV limit minus what you already owe.

Example Calculation

Let's say your property has an appraised value of 6,000,000. The bank offers a 60% LTV on equity loans. Your maximum loan amount would be 3,600,000. If you still owe 1,500,000 on your existing mortgage, the bank would only lend you 2,100,000 (3,600,000 minus 1,500,000). In practice, you would either need to settle your existing loan first, or take a combined loan product that refinances the old balance and releases the new equity — which brings us to cash-out refinancing.

Home Equity Loan vs. Cash-Out Refinancing: What Is the Difference?

This is where many Filipino homeowners get confused, and the distinction matters a great deal for your overall cost.

A home equity loan is a separate, second loan on top of your existing mortgage. You keep your current housing loan in place and add a new loan secured by your property's equity. You now have two monthly payments: your original mortgage payment and the new equity loan payment.

Cash-out refinancing replaces your existing mortgage with a new, larger loan. The new loan pays off your old mortgage, and you receive the difference in cash. You end up with one loan, one monthly payment — ideally at a lower interest rate than your original mortgage.

Which Is Usually Better?

For most homeowners, cash-out refinancing tends to be more cost-effective, especially if your current mortgage rate is higher than what you could qualify for today. Here is why:

• If you are paying 8.5% or 9% on your existing mortgage and you can refinance the entire balance — including the equity drawdown — at a lower rate, your blended cost of borrowing is lower.
• A standalone home equity loan typically carries a higher interest rate (7.5% to 10%) than a standard housing loan refinance because banks consider it higher risk.
• You avoid managing two separate loan accounts and two payment schedules.

The best available refinance rate through Nook is currently 5.99% p.a. For context, if you are paying 8.5% p.a. on a 3,000,000 balance over 20 years, your monthly payment is roughly 26,100. At 5.99% p.a., that drops to approximately 21,500 — saving about 4,600 per month. To estimate what you could save on your specific loan, try the home loan refinance savings calculator.

Qualifying for a Home Equity Loan in the Philippines

Banks assess home equity loan applications using criteria similar to standard housing loans. Here is what most lenders will evaluate:

Property Requirements

• The property must be titled (TCT or CCT) in your name or jointly with co-borrowers
• No liens or encumbrances other than the existing mortgage being refinanced (if applicable)
• Property must be in good condition and located in an area the bank serves
• Minimum appraised value thresholds vary by bank — typically 1,000,000 or higher for Metro Manila and major cities

Borrower Requirements

• Filipino citizen or foreign national married to a Filipino (some banks accept foreigners with restrictions)
• Minimum age of 21, and the loan must be fully repaid before age 65 to 70 depending on the bank
• Stable income: employed borrowers typically need at least 2 years of employment history; self-employed borrowers need 2 to 3 years of audited financial statements
• Minimum monthly gross income varies — expect banks to require that your total monthly debt obligations (including the new loan) do not exceed 40% of gross monthly income
• Good credit history; a clean record with no defaults or restructured loans in the past 3 to 5 years

Documents Typically Required

• Duly accomplished application form
• Valid government-issued IDs (at least 2)
• Proof of income: latest 3 months' payslips or 2 years' ITR and audited financial statements
• TCT/CCT (Transfer Certificate of Title / Condominium Certificate of Title)
• Latest Real Property Tax Declaration and Official Receipt
• Floor plan or lot plan of the property
• If refinancing: latest statement of account from your existing lender

Costs and Fees to Watch Out For

Home equity loans in the Philippines come with several upfront and recurring costs that can add up quickly. Make sure you account for all of these when evaluating whether the loan makes financial sense:

• Appraisal fee: 3,000 to 8,000 depending on the bank and property size. Non-refundable even if your application is declined.
• Processing fee: Typically 5,000 to 10,000 or 0.5% to 1% of the loan amount.
• Notarial and registration fees: These cover the annotation of the new mortgage on your title. Expect 5,000 to 20,000 depending on loan size.
• Documentary stamp tax (DST): 1.5 per 200 of the loan amount — this is a significant cost on larger loans.
• MRI (Mortgage Redemption Insurance) and fire insurance: Required annually and usually added to your monthly amortization.

On a 2,000,000 equity loan, total upfront costs can easily reach 40,000 to 80,000 before you receive a single peso. Factor this into your break-even analysis — it may take 12 to 24 months of savings before you are actually ahead.

Is a Home Equity Loan the Right Move for You?

A home equity loan makes sense when you have a specific, high-value need — a major renovation that will increase property value, a business investment with a clear return, or consolidating high-interest debt like credit cards. It is less sensible for discretionary spending or for funding expenses that do not generate a return.

Before committing, ask yourself: could cash-out refinancing serve the same purpose at a lower overall rate? If your existing mortgage rate is above 7%, the answer is almost certainly yes. Refinancing your entire loan at today's competitive rates — and drawing out equity at the same time — often beats taking a separate equity loan at a higher rate on top of an expensive existing mortgage.

Nook's service is completely free to borrowers. We compare offers from multiple Philippine banks simultaneously and help you determine whether a straight refinance, a cash-out refinance, or a standalone equity product gives you the best outcome for your specific situation.