Home Equity Loan Philippines: Which Banks Offer It & How to Qualify

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 you already own outright. If your property is worth 5,000,000 and your remaining mortgage balance is 2,000,000, you have 3,000,000 in equity. A home equity loan lets you tap into that equity for cash, which you then repay in fixed monthly installments.

In the Philippines, home equity loans are commonly offered under two structures: a traditional lump-sum term loan (sometimes called a home equity loan or real estate loan) and a home equity line of credit (HELOC), which works more like a revolving credit facility. Most Philippine banks lean toward the lump-sum structure, so that's what this guide focuses on.

Homeowners typically use equity loans for major expenses — renovating a property, funding a business, consolidating high-interest debt, covering tuition fees, or handling a medical emergency. Because the loan is secured by real property, interest rates are significantly lower than personal loans or credit cards.

Which Banks Offer Home Equity Loans in the Philippines?

Several major banks in the Philippines offer home equity or real estate-backed loan products. Here's what you need to know about each:

BDO Unibank

BDO offers a Home Equity Loan that allows existing property owners to borrow against the appraised value of their home. Loan amounts typically start at 500,000 and can go up to 70-80% of the property's appraised value. Terms run from 1 to 20 years. BDO is one of the more flexible lenders in terms of acceptable collateral types, including house and lot, condominium units, and vacant lots in certain cases.

BPI (Bank of the Philippine Islands)

BPI's Home Loan program includes an equity financing option called BPI Home Equity. Borrowers can access up to 70% of the property's appraised value, minus any existing mortgage balance. BPI tends to be competitive on rates and is known for a relatively streamlined application process for existing clients. Loan terms go up to 20 years.

Metrobank

Metrobank offers real estate-backed loans with loan amounts starting at 500,000. Their product allows borrowers to use fully paid or partially paid properties as collateral. Like most banks, Metrobank uses an independent appraiser to determine current market value, which becomes the basis for the loan-to-value (LTV) calculation.

Security Bank

Security Bank's Home Equity Loan product is well-regarded for its transparency on rates and fees. They offer loan amounts from 500,000 and terms up to 20 years. Security Bank is also notable for being open to self-employed borrowers, which many other banks treat more cautiously.

RCBC (Rizal Commercial Banking Corporation)

RCBC offers equity-based home financing products with competitive rates. Their mortgage products can be structured as term loans against existing real property. RCBC also has a relationship-based approach for high-value properties, meaning borrowers with premium collateral may be able to negotiate more favorable terms.

PSBank

PSBank, the retail banking arm of Metrobank Group, offers home equity loans with terms up to 10 years — shorter than most competitors. However, their rates and processing times are often competitive for smaller loan amounts. Good for borrowers who want a faster payoff schedule.

EastWest Bank

EastWest Bank offers real property-backed loans targeting both employed and self-employed borrowers. They are sometimes more flexible on credit scoring thresholds, making them worth exploring if you've been declined elsewhere.

China Bank (Chinabank)

Chinabank offers home equity loan products, particularly to existing clients. Their real estate loan product allows borrowing against fully paid properties and can be a solid option for business owners needing working capital secured by real estate.

Pag-IBIG (HDMF)

Pag-IBIG's Multi-Purpose Loan and Home Equity Appreciation Loan (HEAL) are government-backed options for Pag-IBIG Fund members. The HEAL allows qualified members to borrow against the equity of a property financed through Pag-IBIG. Interest rates are typically lower than commercial banks, and terms can be favorable — but eligibility requirements and loan amounts may be more restrictive.

How Much Can You Borrow?

The amount you can borrow depends on three factors: your property's current appraised value, your remaining mortgage balance (if any), and the bank's maximum loan-to-value (LTV) ratio.

Most Philippine banks will lend up to 60-80% of the appraised value. Here's a practical example:

• Appraised property value: 6,000,000
• Bank's maximum LTV: 70%
• Maximum loan amount available: 4,200,000
• Existing mortgage balance: 1,500,000
• Net equity loan you can access: 2,700,000

In this scenario, even though your gross equity is 4,500,000, the bank will only lend you up to 2,700,000 after accounting for what you still owe. Some banks will consolidate your existing mortgage and equity loan into one facility — which is essentially a refinance with cash out. This can actually be a smart move if your current mortgage rate is high. Use our home loan refinance calculator to see whether refinancing your current mortgage while pulling out equity could result in a lower overall monthly payment.

Interest Rates: What to Expect

Home equity loan rates in the Philippines vary by bank, loan amount, term, and borrower profile. As of 2025-2026, typical rates range from 6.5% to 9% per annum for fixed-rate periods of 1 to 5 years. After the fixed period, rates usually reprice based on the bank's prevailing rates.

Government-backed options through Pag-IBIG are generally lower, often in the 6-7% range, but come with membership requirements and stricter eligibility criteria.

For context, if you're currently paying 8.5% on an existing mortgage and you want to take out equity, you may find that refinancing your entire loan — rather than adding a separate equity loan on top — gives you a better blended rate. Check the latest home loan interest rates in the Philippines to benchmark what you should expect to pay.

How to Qualify for a Home Equity Loan

Qualification requirements are largely consistent across banks, though thresholds vary. Here's what you'll typically need to meet:

Property Requirements

• The property must be titled in your name (or jointly with a co-borrower)
• Title must be free of encumbrances, or with a clean remaining mortgage from an accredited bank
• Property must be located in an acceptable area (most banks favor Metro Manila and major provincial cities)
• Condominium units must come from accredited developers for most banks

Borrower Requirements

• Age: typically 21 to 65 years old at the time of loan maturity
• Filipino citizen, or a foreign national with a Filipino spouse for some banks
• Minimum gross monthly income: usually 30,000 to 50,000 depending on the bank and loan amount
• Stable income source: employed (at least 2 years with the same employer) or self-employed (at least 2 years in business with audited financials)
• Good credit history — banks will check your credit bureau record

Documents You'll Need

• Duly accomplished loan application form
• Valid government-issued IDs (at least 2)
• Proof of income: latest 3-month payslips and Certificate of Employment (for employed); ITR, audited financial statements, and business registration documents (for self-employed)
• Photocopy of Transfer Certificate of Title (TCT) or Condominium Certificate of Title (CCT)
• Latest tax declaration and real property tax receipts
• Marriage contract (if applicable)
• Collateral documents and vicinity map

The Application Process: Step by Step

Understanding what to expect helps you prepare and move faster.

1. Pre-qualification: Contact the bank or a mortgage broker to discuss your property value, income, and loan needs. Get a ballpark figure before submitting documents.
2. Submit documents: Compile and submit all required documents. Incomplete submissions are the most common cause of delays.
3. Property appraisal: The bank orders an independent appraisal of your property. This typically takes 5-10 business days and costs 3,000 to 5,000, which is usually paid by the borrower.
4. Credit evaluation: The bank assesses your income, credit history, and collateral. This can take 2-4 weeks.
5. Loan offer: If approved, the bank issues a Letter of Offer or Approval detailing the loan amount, rate, term, and fees.
6. Signing and annotation: You sign the loan documents, and the bank's mortgage is annotated on your title at the Registry of Deeds.
7. Loan release: Funds are released to your account, typically within a few days of title annotation.

End-to-end, the process usually takes 6 to 12 weeks. Working with a mortgage broker can help streamline submissions and avoid back-and-forth with individual banks.

Home Equity Loan vs. Refinancing: Which Should You Choose?

This is one of the most important questions Filipino homeowners face. A home equity loan adds a new debt on top of your existing mortgage. Refinancing replaces your current mortgage entirely — potentially at a lower rate — while optionally releasing additional cash.

If your current mortgage rate is 8% or higher, refinancing and accessing equity simultaneously is often the better financial move. You get a lower rate on your entire remaining balance, and you access cash — all in a single loan with one monthly payment. If your current rate is already low (say, 6% or below), a standalone equity loan makes more sense to avoid repricing your existing mortgage upward.

The key is to run the numbers both ways. A good broker can model both scenarios for you at no cost.

Key Fees to Expect

• Appraisal fee: 3,000 to 5,000
• Processing fee: 5,000 to 10,000 (some banks waive this)
• Notarial fee: varies, typically 1,000 to 3,000
• Mortgage redemption insurance (MRI): required by most banks, usually rolled into the monthly payment
• Fire insurance: required annually, typically 2,000 to 5,000 per year depending on property value
• Registration and annotation fees: paid to the Registry of Deeds, usually 5,000 to 15,000 depending on the loan amount

Is a Home Equity Loan Right for You?

A home equity loan can be a powerful financial tool — but it's not without risk. Because your property is the collateral, failure to repay can result in foreclosure. Before proceeding, make sure the purpose of the loan is sound: income-generating investments, high-ROI property improvements, or consolidating high-interest debt all make strong cases. Using equity to fund recurring lifestyle expenses is generally a red flag.

If you're not sure whether an equity loan or a refinance is the smarter path, Nook's advisors can help you model both options — free of charge. We work with all major Philippine banks and help you find the most competitive rate for your specific situation.