House and Lot Financing Philippines: Using Your Property as Collateral

A house and lot collateral loan is a loan secured by your residential real property. You pledge your house and lot — including the Transfer Certificate of Title (TCT) — to a bank or lending institution, which uses the property as security in case you default on the loan. Because the lender has a tangible asset backing the loan, they are typically willing to offer larger amounts and lower interest rates compared to unsecured personal loans.

In the Philippine context, this type of loan falls into two broad categories: (1) a home equity loan, where you borrow against the equity you've built up in a property you already own outright or are paying off, and (2) a mortgage refinance, where you replace your existing home loan with a new one — usually to get a lower interest rate. Both involve your house and lot serving as collateral, but they serve different purposes.

It's important to note that using your home as collateral carries real risk: if you fail to repay, the bank has the legal right to foreclose on the property. This makes it essential to borrow responsibly and at a rate you can comfortably service over the long term.

Most major commercial banks in the Philippines accept residential real property as collateral. The primary lenders include:

• BDO Unibank — one of the largest home loan providers; accepts TCT-titled residential properties in key urban and suburban areas
• BPI (Bank of the Philippine Islands) — competitive rates and accepts a wide range of residential collateral types
• Metrobank — offers both home equity and refinance products secured by house and lot
• Security Bank — known for flexible terms on property-secured loans
• RCBC — accepts residential collateral for refinancing and equity loans
• Chinabank and UnionBank — growing home loan portfolios with competitive property-backed loan products
• PNB and EastWest Bank — additional options, particularly for properties outside Metro Manila
• Pag-IBIG (HDMF) — a popular option for employed Filipinos, with government-backed rates that can be very competitive for qualified members

Each bank has its own criteria around location, property condition, title status, and borrower profile. Rather than applying to each lender one by one, Nook submits your profile to multiple banks simultaneously — for free — so you can compare real offers side by side.

The amount you can borrow depends primarily on the appraised value of your property and the bank's loan-to-value (LTV) ratio policy. In the Philippines, most banks lend between 60% and 80% of the appraised value of the collateral property.

Here's a practical example: if your house and lot is appraised at 5,000,000 pesos and the bank applies an 80% LTV, the maximum loan amount would be 4,000,000 pesos. If you already have an outstanding home loan balance of 2,000,000 pesos, the net equity available to you would be 2,000,000 pesos.

For refinancing purposes, banks will typically lend up to 80% of appraised value to cover your existing loan balance and potentially give you additional cash out. Loan amounts through Nook's partner banks commonly range from 1,500,000 pesos to 10,000,000 pesos, with terms of 10 to 25 years. Higher-value properties in prime locations may qualify for larger amounts on a case-by-case basis.

While exact requirements vary by bank, the typical documents needed to use a house and lot as collateral in the Philippines include:

Property Documents:

• Original Transfer Certificate of Title (TCT) or Condominium Certificate of Title (CCT)
• Certified true copy of the title from the Registry of Deeds
• Tax Declaration (updated, covering both land and improvement)
• Real Property Tax (RPT) clearance — showing no outstanding taxes
• Vicinity and lot plan
• Floor plan and building specifications (for the improvement/house)

Borrower Documents:

• Valid government-issued IDs
• Proof of income (payslips, ITR, bank statements)
• Certificate of Employment (for employed applicants)
• For self-employed borrowers: audited financial statements, business registration documents — see our guide on self-employed home loan refinancing for specifics

If refinancing an existing loan:

• Latest Statement of Account from your current lender showing outstanding balance
• Loan amortization schedule

Nook's team will guide you through exactly which documents each bank requires and help you organize everything for a faster, smoother application.

Interest rates on property-secured loans in the Philippines vary depending on the bank, your borrower profile, loan amount, and the fixed-rate period you choose. As of today, rates at major commercial banks generally range from 6% to 10% per annum — but many homeowners who haven't reviewed their loan in years are still paying rates well above that range.

Through Nook, the lowest available refinance rate is currently 5.99% p.a. To illustrate the impact: on a 4,000,000 peso loan over 20 years, the difference between paying 8.5% and 5.99% is approximately 46,000 pesos per year in interest savings — or over 900,000 pesos across the life of the loan.

Rates are typically fixed for an initial period (1, 2, 3, or 5 years) and then re-priced. Choosing the right fixed period is an important strategic decision. Nook helps you compare both the headline rate and the full cost structure across multiple banks, so you're not just chasing the lowest teaser rate.

This is one of the most important distinctions for Filipino homeowners to understand:

Home Loan Refinancing means replacing your existing mortgage with a new loan — usually from a different bank — to get a lower interest rate or better terms. The new bank pays off your old loan balance, and you start fresh with new (ideally better) terms. Your house and lot remains the collateral, but the goal is to reduce your monthly payment or total interest cost. Refinancing is ideal if you're currently paying a high rate (7% or above) and have been in your loan for at least 2-3 years.

A Home Equity or Collateral Loan is an additional loan taken against the equity you've built up in your property, while keeping your existing mortgage in place (or on a fully paid property). You receive a lump sum or credit line, using your property's value as security. This is typically used to fund major expenses like home renovations, education, or business capital.

Nook specialises in home loan refinancing — helping you move your existing mortgage to a bank with a better rate. If you're paying 8%, 9%, or more on your current loan, refinancing through Nook to 5.99% p.a. is often the single most impactful financial move you can make as a homeowner.

Banks do not rely on your purchase price or your own estimate of what your property is worth. Instead, they commission an independent property appraisal conducted by an accredited appraiser — either in-house or a third-party firm approved by the bank.

The appraiser physically inspects the property and considers the following factors:

• Location — proximity to business districts, schools, transport hubs, and flood risk zones significantly affects value
• Lot area and title status — only TCT-titled (freehold) properties are accepted; tax declaration-only properties are generally not accepted as collateral
• Property condition — age, structural integrity, and quality of construction of the house/improvement
• Comparable sales — recent selling prices of similar properties in the same area
• Zoning classification — residential, commercial, or mixed-use zoning affects lendable value

The appraisal fee is typically charged to the borrower and ranges from 3,000 to 8,000 pesos depending on the bank and property location. The bank's loan offer will then be based on a percentage (60–80%) of this appraised value, not the market price you may have in mind.

Yes — this is exactly what happens in a home loan refinance. Your property currently has an existing mortgage (an annotation on your TCT in favour of your current bank). When you refinance, the new bank pays off your old lender, the old mortgage annotation is released, and a new mortgage annotation is registered in favour of the new bank. Your house and lot continues to serve as collateral throughout the process.

What you generally cannot do is take a separate second mortgage or equity loan on top of an existing first mortgage without the first lender's consent — and even then, most Philippine banks will not accept second-mortgage collateral. The standard process is to refinance the first mortgage entirely.

If you have significant equity in your property (e.g., your outstanding balance is much lower than the appraised value), refinancing can sometimes allow you to borrow more than your current balance — giving you access to that equity as cash while still potentially lowering your rate. This is sometimes called a cash-out refinance, and Nook's partner banks do offer this in some cases.

For OFW homeowners managing mortgages from abroad, the process has additional nuances — you can learn more in our OFW home loan refinance guide.

The timeline varies by bank and by how quickly you can submit complete documents, but here is a realistic breakdown of what to expect:

• Document preparation: 1–2 weeks (gathering title copies, tax declarations, income documents, and your existing loan statement)
• Bank evaluation and credit assessment: 2–4 weeks after document submission
• Property appraisal: 1–2 weeks (often conducted in parallel with credit assessment)
• Loan offer / letter of approval: 1 week after appraisal
• Title transfer / annotation and loan release: 2–4 weeks

All in, a typical refinancing or collateral loan in the Philippines takes between 6 and 12 weeks from initial application to loan release. Some banks are faster; others are slower. Properties outside Metro Manila sometimes take longer due to appraisal scheduling and Registry of Deeds processing times.

Working through Nook can significantly reduce delays because our team pre-checks your documents, coordinates directly with the banks, and flags issues before they cause rejections or re-submissions. We also apply to multiple banks simultaneously, so you have options if one bank takes longer than expected.

Nook is the Philippines' first digital mortgage broker — and our service is completely free for borrowers. Here's how we make the process easier and more rewarding for you:

• Multi-bank comparison: Instead of approaching BDO, BPI, Metrobank, Security Bank, and others one by one, Nook submits your profile to multiple partner banks simultaneously. You get competing offers in one place.
• Access to the best rates: Our partner banks offer preferential rates through Nook — currently as low as 5.99% p.a. — that may not be available if you walk in off the street.
• Document guidance: Our team tells you exactly what to prepare for each bank and reviews your documents before submission to minimise back-and-forth.
• Pre-qualification: We assess your profile — income, existing debt, property details — upfront so we only submit you to banks where you have a strong chance of approval. This protects your credit record from unnecessary rejections.
• End-to-end support: From your first enquiry to loan release, Nook guides you through every step — appraisal coordination, bank follow-ups, and title processing.

Whether you're a salaried professional, a business owner, or an OFW, Nook helps you leverage your house and lot to access the best possible loan terms in the Philippine market — at zero cost to you.