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 you already own outright. If your property is worth 5,000,000 pesos and your remaining mortgage balance is 2,000,000 pesos, you have 3,000,000 pesos in equity. A home equity loan lets you convert a portion of that equity into cash, which you repay over a fixed term with interest.
In the Philippines, home equity loans go by several names depending on the bank: home equity loan, real estate loan, multi-purpose loan secured by real estate, or simply a property-backed personal loan. The mechanics are the same — your TCT (Transfer Certificate of Title) or CCT (Condominium Certificate of Title) serves as collateral, and the bank lends you a percentage of your property's appraised value.
This guide covers which Philippine banks offer home equity loans in 2026, how to qualify, what rates to expect, and — critically — how to tell whether a home equity loan or a mortgage refinance is the smarter move for your situation.
Which Philippine Banks Offer Home Equity Loans?
Not every bank uses the term "home equity loan," but most major banks offer a product that works the same way. Here's a breakdown of what's available in 2026:
BDO Unibank
BDO offers a Home Equity Loan product that allows existing property owners to borrow against their real estate. Loan amounts typically start at 500,000 pesos and can go up to 70% of the appraised value of the property. Terms range from 1 to 10 years for equity loans (shorter than their standard home loans). Interest rates are quoted on a fixed-period basis and tend to run between 7% and 9% per annum depending on the fixing period chosen.
BPI (Bank of the Philippine Islands)
BPI's Home Equity Loan is one of the more well-known products in this category. BPI will lend up to 60% of the property's appraised value, with a minimum loan amount of 500,000 pesos. Terms of up to 10 years are available. BPI generally requires the property to be free of any existing mortgage — or, if there is an existing loan, it must be with BPI itself. Rates are competitive but vary with market conditions.
Metrobank
Metrobank offers a Real Estate Loan product that functions as a home equity facility. Borrowers can access up to 60–70% of appraised value. Metrobank is known for relatively flexible use-of-proceeds policies — funds can be used for business capital, tuition, medical expenses, home improvement, or debt consolidation.
Security Bank
Security Bank's Home Equity Loan allows borrowing of up to 60% of the property's appraised value, with loan amounts from 500,000 pesos. They offer terms of 1 to 10 years and competitive fixed rates. Security Bank is often cited by brokers for responsive processing times.
RCBC (Rizal Commercial Banking Corporation)
RCBC offers equity loans secured by real property with similar LTV (loan-to-value) limits of around 60–70%. Their product is accessible to both RCBC mortgage holders and borrowers whose properties are unencumbered (title is clean with no existing loan).
UnionBank
UnionBank offers multi-purpose loans backed by real estate. Their digital-first approach means parts of the application can be completed online. Loan proceeds can be used for virtually any purpose, making this a flexible option for borrowers who need liquidity.
PNB (Philippine National Bank)
PNB's real estate-secured loan products are available to borrowers with clean titles or equity in existing financed properties. PNB also serves OFW borrowers, which can be an advantage for overseas Filipino workers looking to leverage Philippine property.
EastWest Bank
EastWest Bank offers property-backed loans with terms up to 10 years and loan amounts starting at 500,000 pesos. They are known for serving the mid-market segment and have branch networks in key urban areas.
Pag-IBIG (HDMF)
Pag-IBIG members who have an existing Pag-IBIG housing loan can access a Home Equity Appreciation Loan (HEAL). This allows you to borrow against the appreciated value of your property — i.e., what your home is now worth versus what you originally borrowed. Rates through Pag-IBIG tend to be lower than commercial banks, making this a valuable option for qualified members.
How Much Can You Borrow?
The maximum loan amount on a home equity loan in the Philippines is determined by the Loan-to-Value (LTV) ratio. Most banks lend 60–70% of your property's current appraised value, minus any outstanding mortgage balance.
Here's a practical example:
- Property appraised value: 5,000,000 pesos
- Bank's maximum LTV: 60% → Maximum secured amount: 3,000,000 pesos
- Outstanding mortgage balance: 1,500,000 pesos
- Available equity loan: 3,000,000 minus 1,500,000 = 1,500,000 pesos
If your property is fully paid off (no outstanding mortgage), you can potentially access up to 70% of appraised value as a lump sum — on a 5,000,000 peso property, that's up to 3,500,000 pesos.
Home Equity Loan vs. Mortgage Refinancing: Which Is Better?
This is the most important question Filipino homeowners should ask before applying for a home equity loan — and it's one that most banks won't help you think through objectively.
A home equity loan gives you additional cash on top of your existing mortgage. You'll be making two separate loan payments (unless your bank rolls them together), and equity loan rates are typically higher than primary home loan rates.
Mortgage refinancing, on the other hand, replaces your existing home loan with a new one — ideally at a lower interest rate. If you need to access cash and your current mortgage rate is high, a cash-out refinance can accomplish both goals simultaneously: lower your rate and give you a lump sum. Through Nook, the best available refinance rate is currently 5.99% per annum — significantly lower than the 7–10% that many Filipino homeowners are currently paying.
Consider this comparison for a borrower with a 4,000,000 peso remaining loan balance at 8.5% interest, who also wants to access 1,000,000 pesos in equity:
- Option A — Home Equity Loan: Keep existing mortgage at 8.5%. Take a separate equity loan at 8.5–9%. Now managing two loans with a combined effective cost above 8.5%.
- Option B — Cash-Out Refinance: Refinance the entire 4,000,000 peso balance plus the 1,000,000 peso cash-out into a single new loan of 5,000,000 pesos at 5.99%. One payment, lower rate, significant savings.
If your current mortgage rate is above 6.5%, a cash-out refinance will almost always be the smarter financial move. Use our home loan refinance calculator to see exactly how much you could save.
Home Equity Loan Eligibility Requirements
While requirements vary slightly by bank, most Philippine lenders look for the following when evaluating a home equity loan application:
Property Requirements
- Property must be located in the Philippines (most banks focus on Metro Manila and major urban areas, though some lend nationwide)
- Clear title — TCT or CCT registered in your name (or co-applicant's name)
- No existing adverse annotations on the title (no lis pendens, notice of levy, etc.)
- Property must be residential or mixed-use (commercial-only properties have different products)
- Some banks require the property to be free of existing mortgage; others allow equity loans on properties with existing loans at the same bank
Borrower Requirements
- Filipino citizen or qualified foreign national (with restrictions)
- Age: typically 21 to 65 years old at loan maturity
- Stable income — employed for at least 2 years with current employer, or at least 2 years in business for self-employed applicants
- Minimum gross monthly income varies by bank and loan amount (typically 50,000–80,000 pesos for loans above 1,000,000 pesos)
- Good credit history — no defaults, no restructured loans in the past 2–3 years
Documents Required for Application
Prepare the following documents before applying to any bank:
- Duly accomplished application form
- One valid government-issued ID
- Proof of income: latest 3 months payslips + Certificate of Employment (employed), or latest 2 years ITR + audited financial statements (self-employed)
- Photocopy of TCT/CCT (original will be needed for collateral registration)
- Latest tax declaration of the property
- Location map and photos of the property
- Marriage certificate (if applicable)
- For OFWs: employment contract, POEA certificate, proof of remittances
How to Apply: Step-by-Step
Step 1: Get Your Property Appraised
Before approaching banks, have a realistic sense of your property's current market value. You can request a formal appraisal from a licensed real estate appraiser (expect to pay 3,000–8,000 pesos for this). The bank will conduct their own appraisal as part of the application process, but having your own estimate helps you set expectations and negotiate.
Step 2: Compare Multiple Banks
Interest rates, LTV limits, processing fees, and documentary requirements vary significantly between lenders. Do not apply to only one bank. Compare at least 3–4 offers before committing. To check current home loan interest rates across banks, see our home loan interest rates guide.
Step 3: Prepare Your Documents
Gather all required documents before submitting any application. Incomplete submissions slow processing times considerably — most banks take 2–4 weeks to process complete applications, but incomplete ones can drag on for months.
Step 4: Submit and Follow Up
Submit your application in person at a branch or, for banks with digital channels, online. Ask for a tracking reference number and the name of your loan officer. Follow up proactively — weekly check-ins are appropriate.
Step 5: Review the Loan Offer Carefully
When you receive a loan offer, look beyond the headline interest rate. Check: the effective interest rate (EIR), all processing fees, appraisal fees, notarial fees, documentary stamp tax, and any pre-payment penalties. The total cost of borrowing is what matters.
Is a Home Equity Loan the Right Move in 2026?
Home equity loans make sense in specific situations: you need a lump sum of cash, your existing mortgage rate is already competitive (below 6.5%), and you have sufficient equity. Common use cases include home renovation, business capital injection, debt consolidation of high-interest personal loans or credit cards, and major life expenses like tuition or medical costs.
However, if your current mortgage rate is above 7% — which is true for a large proportion of Filipino homeowners whose rates repriced in the past 3–5 years — then refinancing your entire loan at today's lower rates is likely to save you more money than any other financial move you can make. A cash-out refinance at 5.99% through Nook could reduce your monthly payment by tens of thousands of pesos annually while simultaneously giving you access to your property's equity.
The smartest step before deciding is to run the numbers. Nook's advisors can show you side-by-side what a home equity loan versus a refinance would cost you — at no charge, since Nook's service is completely free to borrowers.