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

What Is a Home Equity Loan in the Philippines?

A home equity loan lets you borrow money using the value you've already built up in your property as collateral. In the Philippines, this product goes by several names depending on the bank — home equity loan, equity loan, or sometimes a multi-purpose loan secured by real estate. The core idea is the same: your home becomes the security, and in exchange, you get access to a lump sum of cash at interest rates lower than a personal loan or credit card.

Unlike refinancing, where you replace your existing mortgage with a new one at better terms, a home equity loan is typically a second loan on top of your current mortgage. Some banks, however, structure it differently — allowing you to refinance and cash out equity at the same time. We'll walk through both approaches below.

How Much Can You Borrow?

The amount you can borrow depends on two things: (1) your property's current appraised value, and (2) how much you still owe on your existing mortgage. Banks use a metric called the Loan-to-Value (LTV) ratio to determine the maximum they'll lend.

Most Philippine banks cap home equity loans at 60% to 80% of the appraised value of your property. Here's how this works in practice:

• Your home is appraised at 5,000,000
• The bank lends up to 70% LTV = 3,500,000
• You still owe 1,800,000 on your current mortgage
• Maximum equity you can access = 3,500,000 − 1,800,000 = 1,700,000

The more you've paid down your mortgage — and the more your property has appreciated in value — the more equity you can unlock.

Which Banks in the Philippines Offer Home Equity Loans?

Not every bank markets a product explicitly called a "home equity loan," but most major Philippine banks offer some form of real estate-secured borrowing. Here's what you need to know about the key players:

BDO (Banco de Oro)

BDO offers a Home Equity Loan that allows existing homeowners to borrow against their property. BDO is one of the more flexible lenders, accepting both residential and commercial properties as collateral. Loan amounts typically start at 1,000,000 and can go significantly higher depending on the appraised value. LTV ratios are generally up to 70%. Interest rates are subject to repricing every 1, 2, or 3 years.

BPI (Bank of the Philippine Islands)

BPI's Home Equity Loan product allows borrowers to use their home as collateral for cash needs. BPI is known for competitive rates and a relatively streamlined application process. Minimum loan amount is typically 500,000, and LTV can go up to 70% for residential properties. BPI also offers a combination product where you can refinance and pull out equity simultaneously.

Metrobank

Metrobank offers equity loans under its home loan product suite. It accepts titled residential properties and condo units. LTV ratios are generally up to 70%, and loan terms can extend to 20 years. Metrobank's rates are competitive and worth comparing, particularly for properties in Metro Manila and key provincial cities.

Security Bank

Security Bank markets a Home Equity Loan product that is relatively straightforward. They accept a wide range of property types, including house and lot, condominium units, and vacant lots in some cases. LTV is up to 60% for some property types. Security Bank is also known for being open to self-employed borrowers, which many other banks treat more cautiously.

RCBC (Rizal Commercial Banking Corporation)

RCBC offers multi-purpose home equity loans with loan amounts starting at 300,000. Their LTV ratio goes up to 70%, and loan terms can stretch up to 20 years. RCBC also participates in Pag-IBIG's housing programs, which may be relevant if you're looking to refinance a Pag-IBIG loan at the same time.

PNB (Philippine National Bank)

PNB offers a home equity product primarily targeting OFW (Overseas Filipino Worker) borrowers, though it's open to local borrowers as well. LTV ratios are competitive, and PNB has a broad branch network that can be useful if you're based in the provinces.

UnionBank

UnionBank offers a digitally-oriented home loan suite that includes equity loan options. Their platform is one of the more modern in the local banking landscape, which can make document submission and status tracking easier. LTV is typically up to 70%.

Chinabank

China Banking Corporation offers home equity loans with competitive rates. They are particularly active in lending to Chinese-Filipino entrepreneurs and business owners. Chinabank accepts both residential and commercial properties as collateral.

PSBank

PSBank (Philippine Savings Bank), an affiliate of Metrobank, also offers real estate-secured loans. Their home equity loan product is relatively accessible, with minimum loan amounts lower than some competitors. LTV is up to 70%.

Pag-IBIG (HDMF)

If you're a Pag-IBIG member, you may be eligible for a Multi-Purpose Loan (MPL) secured by your existing Pag-IBIG housing loan. This is essentially a home equity product for Pag-IBIG borrowers. The amount you can borrow is based on the outstanding balance of your housing loan and your equity stake. Pag-IBIG MPL rates are typically very competitive, and repayment can be done via salary deduction.

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

Many homeowners confuse home equity loans with cash-out refinancing. They serve a similar purpose — accessing the equity in your home — but they work very differently.

• Home Equity Loan: A separate, second loan on top of your existing mortgage. You keep your current loan and add a new one. You receive the cash as a lump sum and repay the new loan separately.
• Cash-Out Refinancing: You replace your entire existing mortgage with a new, larger loan. The difference between your old loan balance and the new loan amount is paid out to you in cash. This means you have just one loan to manage after the transaction.

Cash-out refinancing can be the smarter move if your current mortgage rate is high. If your existing loan is at 8% or 9%, and you can refinance the entire balance (plus the cash you need) to 5.99% through Nook, you come out ahead on two fronts — you lower your rate and get the cash. You can use our home loan refinance calculator to see how much you could save by combining your equity withdrawal with a rate reduction.

What Can You Use a Home Equity Loan For?

Philippine banks are generally flexible about the end-use of home equity loan proceeds, as long as the purpose is legal. Common uses include:

• Home renovation or expansion
• Business capital or working capital injection
• Education expenses (tuition for college or graduate school)
• Medical expenses
• Debt consolidation (paying off high-interest personal loans or credit card balances)
• Purchase of a second property (used as a bridge or down payment)

Some banks will ask you to declare the purpose on your application, but most do not require you to prove how the funds were used after disbursement.

How to Qualify for a Home Equity Loan in the Philippines

Qualification criteria are broadly similar across banks, though each lender has its own specific requirements. Here's what you'll generally need:

Property Requirements

• The property must have a clean, transferable title (TCT or CCT)
• No liens, encumbrances, or adverse claims on the title
• Property must be in good condition and meet the bank's appraisal standards
• Location is typically Metro Manila and major cities; some banks are selective about provincial properties

Borrower Requirements

• Filipino citizen (or married to one for foreigners in some cases)
• Age: typically 21 to 65 years old at loan maturity
• Stable income: employed for at least 2 years, or self-employed with at least 3 years of profitable operations
• Good credit history with no ongoing defaults
• Minimum monthly income varies by bank — a good rule of thumb is that your total monthly loan obligations (including the new loan) should not exceed 35% to 40% of your gross monthly income

Documents You'll Need

• Government-issued IDs
• Latest ITR (Income Tax Return) — usually the last 1-3 years
• Certificate of Employment and latest payslips (for employed applicants)
• Audited Financial Statements (for self-employed applicants)
• Photocopy of the property's Transfer Certificate of Title (TCT) or Condominium Certificate of Title (CCT)
• Tax Declaration and Real Property Tax receipts
• Location map and vicinity map of the property

Interest Rates and Loan Terms to Expect

Home equity loan rates in the Philippines are variable and subject to repricing, meaning they can change after a fixed period (usually 1, 3, or 5 years). Based on the current market in 2026, here's a rough guide:

• Bank home equity loan rates: typically 7% to 11% per annum, depending on the bank, the repricing period, and your credit profile
• Pag-IBIG MPL rates: generally lower, around 5.5% to 6.5% for qualified members
• Loan terms: 1 to 20 years depending on the bank and loan amount

Many Filipino homeowners don't realize that if they're already paying a high rate on their existing mortgage — say 9% — and they pile a home equity loan on top at 10%, they're now carrying two expensive loans. In many cases, the smarter financial move is to refinance the entire mortgage at today's lowest rates. You can check current home loan interest rates in the Philippines to see how your existing rate compares to what's available now.

How to Apply: Step-by-Step

Applying for a home equity loan in the Philippines typically follows these steps:

• Step 1 – Determine how much equity you have. Get a rough estimate of your property's current market value (you can use recent sales in your area as a guide), then subtract your outstanding loan balance.
• Step 2 – Choose your lender. Compare at least 3 banks based on their LTV, interest rates, fees, and processing times. Alternatively, use a broker like Nook to compare multiple banks at once for free.
• Step 3 – Submit a loan application. Fill out the bank's application form and submit your documents. Some banks accept online submissions; others require in-person visits.
• Step 4 – Property appraisal. The bank will send an appraiser to assess the current value of your property. This determines your maximum loanable amount.
• Step 5 – Credit evaluation. The bank reviews your income, credit history, and the appraisal. This can take 1 to 4 weeks depending on the bank.
• Step 6 – Loan approval and offer. If approved, the bank issues a loan offer letter with the approved amount, rate, and terms. Review carefully before signing.
• Step 7 – Loan release. After signing and completing documentation, the bank releases the funds — usually via bank transfer or manager's check.

Is a Home Equity Loan the Right Move for You?

A home equity loan can be a powerful financial tool, but it carries real risk: your home is on the line. Before proceeding, ask yourself these questions:

• Is the purpose of this loan genuinely going to improve your financial position (investment, income-generating business, high-ROI renovation)?
• Can you comfortably afford the additional monthly repayment on top of your existing mortgage?
• Have you compared this option against refinancing with cash-out? If your current rate is high, cash-out refinancing might deliver better overall savings.
• Have you accounted for all the fees — appraisal, notarial, documentary stamp tax, and processing fees?

If you're primarily motivated by reducing your monthly payments or your interest burden, refinancing your existing mortgage may be a better starting point. Nook helps Filipino homeowners compare refinancing options from multiple banks — for free — so you can make a fully informed decision before taking on any new debt.