Home Loan Interest Rates in the Philippines: What You Need to Know in 2026

If you have an existing home loan — or you're planning to take one out — understanding Philippine bank interest rates is one of the most important financial decisions you'll make. A difference of even 1% to 2% in your interest rate can translate to hundreds of thousands of pesos over the life of your loan.

This guide breaks down current home loan interest rates across all major Philippine banks, explains how rates work, and shows you how to find the lowest possible rate for your situation.

How Home Loan Interest Rates Work in the Philippines

Philippine home loans typically use a fixed-then-repricing structure. This means your interest rate is locked in for an initial period — usually 1, 2, 3, 5, or 10 years — and then repriced (adjusted) based on current market rates at the end of that period.

This is critically different from a truly fixed rate loan for the entire term. Most Filipino homeowners don't realize their rate will change until they receive the bank's repricing notice. When that happens, many are shocked to find their monthly payment has jumped significantly.

Fixed Rate Periods Available

After the fixed period ends, most banks reprice to their prevailing rate — which is often significantly higher than what you were paying. This is one of the most common triggers for homeowners to explore refinancing.

Current Home Loan Interest Rates by Bank (2026)

The following rates reflect indicative ranges from major Philippine banks. Actual rates depend on your loan amount, loan-to-value ratio, credit profile, and the bank's current promotions. Always request a formal loan offer (Letter of Offer) to confirm your specific rate.

BDO Unibank

BDO is the Philippines' largest bank and one of the most active home lenders. Their rates typically range from 6.50% to 9.00% p.a. depending on the fixing period. BDO is known for competitive rates on larger loan amounts and has a wide branch network that makes documentation submission easier.

BPI (Bank of the Philippine Islands)

BPI offers home loans across a wide range of loan amounts with rates generally between 6.75% and 9.25% p.a. BPI's online application process is relatively streamlined, and they offer competitive rates for existing BPI clients with strong repayment histories.

Metrobank

Metrobank is one of the top choices for mid-to-large loan amounts. Their rates typically fall in the 6.88% to 9.50% p.a. range. Metrobank tends to be strong for refinancing, and they are often willing to negotiate on rate for borrowers with clean credit records.

Security Bank

Security Bank has historically been competitive on rates, particularly for the 3- and 5-year fixed periods. Expect rates in the range of 6.75% to 9.00% p.a. They are known for responsive service and faster processing timelines relative to some larger banks.

RCBC (Rizal Commercial Banking Corporation)

RCBC offers home loan rates from approximately 6.88% to 9.25% p.a. They are a strong option for OFW borrowers and have flexible documentation requirements for overseas Filipino applicants.

UnionBank

UnionBank's rates generally range from 7.00% to 9.50% p.a. As a digitally focused bank, their online loan application experience is among the best, though their rate competitiveness varies by loan size.

Chinabank (China Banking Corporation)

Chinabank offers competitive rates particularly for Chinese-Filipino borrowers and established businesses. Rates typically fall in the 6.75% to 9.00% p.a. range.

PNB (Philippine National Bank)

PNB's home loan rates generally range from 7.00% to 9.50% p.a. They are a common option for government employees and have a broad branch presence nationwide.

EastWest Bank

EastWest Bank offers home loans with rates from approximately 7.25% to 9.75% p.a. They are a solid choice for borrowers who value personal service and are particularly active in Metro Manila and key provinces.

PSBank

PSBank (Philippine Savings Bank), a Metrobank subsidiary, typically offers rates from 7.00% to 9.50% p.a. They often have promotional rates for new borrowers and are worth considering alongside parent bank Metrobank.

Pag-IBIG (HDMF)

Pag-IBIG Fund offers government-subsidized home loans with some of the most competitive rates available — particularly for loans up to 6,000,000 pesos. Rates start as low as 5.75% p.a. for a 1-year fix on qualifying socialized and economic housing loans. For larger amounts, rates range from 6.50% to 10.00% p.a. depending on the fixing period and loan amount. Pag-IBIG is only available to active Fund members.

Why the Rate You're Paying Today Might Not Be the Rate You Started With

Here's a scenario that plays out for thousands of Filipino homeowners every year: You took out a home loan in 2019 or 2020 at a fixed rate of 6.50% for 3 years. That fixed period ended in 2022 or 2023. Your bank repriced your loan — and your new rate may now be anywhere from 8.00% to 10.00% p.a.

On a loan balance of 4,000,000 pesos with 15 years remaining, that difference is staggering:

Over 15 years, that adds up to more than 1,000,000 pesos in extra interest. This is exactly why checking whether you're overpaying on your home loan interest rate is so important.

What Is Refinancing and How Can It Help?

Home loan refinancing means replacing your existing loan with a new one — ideally at a lower interest rate, with better terms, or both. Through Nook, qualified borrowers can access rates as low as 5.99% p.a. — significantly lower than the 7% to 10% many current homeowners are paying.

Refinancing is worth seriously considering if:

To estimate how much you could save, use Nook's home loan refinance calculator to get a personalized savings estimate in minutes.

What Affects Your Home Loan Interest Rate?

Banks don't offer the same rate to every borrower. Here are the key factors that influence the rate you qualify for:

Loan-to-Value (LTV) Ratio

The lower your LTV — meaning the more equity you have in your property — the better your rate. Banks see lower LTV loans as less risky. A loan at 60% LTV will typically get a better rate than one at 80% LTV.

Loan Amount

Larger loan amounts often attract more competitive rates because they represent more valuable business for the bank. Loans above 3,000,000 to 5,000,000 pesos tend to get better treatment.

Credit History

Borrowers with a clean credit record — no missed payments, no defaults — will qualify for the best rates. Philippine banks check credit through the Credit Information Corporation (CIC).

Income and Employment Stability

Banks favor employed borrowers with stable incomes from established companies. Self-employed borrowers can still qualify but may face slightly higher rates or stricter documentation requirements.

Property Type and Location

Residential properties in Metro Manila and key urban centers are typically appraised more favorably. Raw land or properties in less liquid markets may face stricter terms.

How to Get the Lowest Home Loan Rate in the Philippines

The single most effective strategy is to compare multiple banks at the same time. Most homeowners apply to one or two banks and accept whatever rate they're offered. But rates can vary by 0.50% to 1.50% or more across banks for the same borrower profile — a difference that amounts to hundreds of thousands of pesos over the life of a loan.

This is where Nook comes in. As the Philippines' first digital mortgage broker, Nook submits your application to multiple banks simultaneously and presents you with competing offers — all for free. You see which banks will approve you and at what rate, and you choose the best offer. There's no obligation and no cost to the borrower.

Understanding Rate Lock-In Periods and Penalties

Most Philippine home loans come with a lock-in period — typically 1 to 3 years from loan release — during which you cannot prepay or refinance without incurring a penalty. Penalties usually range from 1% to 3% of the outstanding loan balance.

Before refinancing, always check:

Even with a prepayment penalty, many homeowners find that refinancing to a significantly lower rate still results in net savings within 12 to 24 months. This is called the break-even point — the moment when your cumulative savings exceed the total cost of refinancing.

Key Takeaways