Most Filipinos guess how much home loan they can afford. Your salary already tells you the answer — you just need the right formula.
REFINANCE AND FREE UP YOUR BUDGET
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Why this matters
Banks in the Philippines typically use a debt-to-income (DTI) ratio to figure out how much you can borrow — and most cap your total monthly debt payments, including the new home loan, at around 30% to 40% of your gross monthly income. If you're earning 100,000 pesos a month, that means banks generally want your home loan payment (plus any other debts like car loans or credit cards) to stay under 30,000 to 40,000 pesos. That single number determines your maximum loan amount far more than the price of the house you want.
The math works backwards from there. Once a bank knows your maximum affordable monthly payment, they apply their interest rate and your chosen loan term to calculate the loan amount that fits. This is exactly why two people earning the same salary can qualify for very different loan amounts — the one with the lower interest rate can borrow more, or pay less for the same amount, purely because of the rate they're offered.
This is also where most Filipino borrowers unknowingly leave money on the table. Your salary determines your borrowing power, but your interest rate determines how far that power actually stretches. If you're already holding a mortgage at 8% or 9% and your salary hasn't changed, refinancing to a lower rate is the fastest way to either shrink your monthly payment or free up room to qualify for more — without earning a single peso more.
How it works
Enter your loan details into our calculator. Instantly see what banks are offering right now and how much you'd save each month. No personal information required.
If the numbers make sense, book a free call. Your consultant compares offers from 15+ banks — something that would take you weeks to do on your own — and recommends the best option for your situation.
We manage the entire application, documentation, and bank coordination. You sign where we tell you. Your new lower payment starts next month. Nook's service is completely free — we're paid by the receiving bank.
Common questions
Most Philippine banks allow your total monthly debt payments, including the home loan, to reach about 30% to 40% of your gross monthly income. So if you earn 80,000 pesos a month, your maximum monthly amortization is typically around 24,000 to 32,000 pesos, which translates to a loan amount depending on the interest rate and term offered.
Yes, because your maximum monthly payment stays fixed based on your salary, a lower interest rate lets more of that payment go toward principal instead of interest. This means banks can approve a bigger loan amount for the exact same salary, simply because the rate is lower.
At current typical bank rates around 7% to 8.5% over 20 years, a 3,000,000 peso loan runs roughly 23,000 to 26,000 pesos a month. To comfortably qualify under most banks' 30% to 40% DTI rule, you'd generally need a gross monthly household income of around 65,000 to 85,000 pesos.
Many banks do count consistent OFW remittances, allowances, and guaranteed bonuses, but they usually require at least six months to a year of documented history. Ad hoc income like unguaranteed commissions is often discounted or excluded entirely, so it's worth checking with your specific bank how they treat your income mix.
Yes. If your existing mortgage is at a high rate, refinancing to a lower one can immediately lower your monthly payment, which frees up room under your DTI limit for other borrowing or simply gives you breathing room in your budget. Nook checks your numbers against all major Philippine banks for free to show you exactly how much you'd save.
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