What Is House and Lot Financing in the Philippines?

House and lot financing is a home loan that lets you purchase a residential property — the house and the land it sits on — by borrowing from a bank, a government lending program, or another financial institution. Instead of paying the full price upfront, you spread repayments over a set loan term, typically 15 to 25 years, and pay interest on the outstanding balance.

In the Philippines, house and lot financing is available through two main channels: government-backed programs like Pag-IBIG (HDMF) and private commercial banks. Each has its own interest rate structure, eligibility requirements, and maximum loanable amounts. Understanding how they differ — and how to compare them side by side — is the most important step before you sign anything.

How Does House and Lot Financing Actually Work?

The mechanics of a Philippine home loan follow a fairly standard process regardless of which lender you choose:

One critical detail many first-time buyers miss: Philippine bank home loans use repricing periods, not lifetime fixed rates. A bank advertising "6.5% fixed" typically means 6.5% for the first 1, 2, or 3 years — after which the rate resets to whatever the bank's prevailing rate is at that time. This is why many homeowners end up refinancing a few years after their initial purchase.

Banks Offering House and Lot Financing in 2026

Here is a snapshot of the major lenders currently active in the Philippine residential mortgage market and what to expect from each:

BDO Unibank

BDO is the country's largest bank and one of the most active home lenders. It offers financing for house and lot purchases, condo units, lot-only, and construction. Typical fixed repricing periods range from 1 to 5 years. BDO is known for processing speed on straightforward applications and accepts both employed and self-employed borrowers.

BPI (Bank of the Philippine Islands)

BPI offers competitive rates and has one of the more streamlined digital application processes among local banks. Their home loan product covers house and lot, townhouse, and condo purchases. BPI also has a flexible repricing menu — you can choose 1-year, 3-year, 5-year, or 10-year fixed periods, which gives you more control over your interest rate risk.

Metrobank

Metrobank's home loan product is widely used for mid-to-high-end residential purchases. They offer longer fixed-rate periods than some competitors and are particularly active with developer tie-ups, which can sometimes mean preferential rates on specific projects.

Security Bank

Security Bank has positioned itself as a strong player in the refinancing and purchase market, often with sharper promotional rates on their 1-year and 3-year fixed products. Worth checking if you want a shorter repricing period with a competitive opening rate.

RCBC, UnionBank, Chinabank, EastWest Bank

These mid-tier banks are competitive on rates and often more flexible on documentation, which can be useful for self-employed borrowers or those with irregular income. Always worth getting a quote to use as a comparison benchmark.

Pag-IBIG (HDMF)

Pag-IBIG offers the most affordable rates for qualifying members, with rates starting as low as 5.375% for shorter repricing periods on loans up to 750,000. The maximum loanable amount is 6,500,000 for standard home loans. Pag-IBIG is often the best option for first-time buyers in the low-to-middle income segment. If you currently have a Pag-IBIG loan and rates have risen since you took it out, it may be worth exploring refinancing your Pag-IBIG home loan to a private bank to compare whether a commercial lender can offer you a better deal.

Typical Interest Rates for 2026

House and lot loan rates in the Philippines vary based on which bank you approach, how long you fix your rate for, and your borrower profile. Here is a general range you can expect in 2026:

The best rate currently available through Nook for qualified borrowers is 5.99% p.a. — which sits meaningfully below what most buyers are being quoted directly by banks. This matters because even a 1% difference in interest rate on a 4,000,000 loan over 20 years amounts to more than 400,000 in total interest savings.

How Much Can You Borrow?

Most Philippine banks will lend up to 80% of the property's appraised value, though some go up to 90% for select developments or borrower profiles. Your actual approved loan amount also depends on your Debt Service Ratio (DSR) — banks typically require that your total monthly loan obligations not exceed 30% to 40% of your gross monthly income.

Here are some practical examples based on a 20-year loan term at 7.5% interest:

These are approximations. Each bank calculates DSR slightly differently, and some will allow higher ratios for borrowers with strong credit histories or significant assets.

Fixed vs. Variable Rate: Which Should You Choose?

This is one of the most common questions buyers ask — and the honest answer is: it depends on your risk tolerance and how long you plan to hold the property.

A shorter fixed period (1 or 3 years) typically gives you a lower initial rate, but exposes you to rate repricing sooner. If rates rise by the time you reprice, your monthly payments increase. If rates fall, you benefit.

A longer fixed period (5 or 10 years) gives you payment certainty and protects you if rates go up — but you pay a premium for that certainty in the form of a slightly higher rate upfront.

For most buyers in 2026, a 3-year or 5-year fixed period strikes a reasonable balance. It gives you several years of payment stability while keeping your opening rate competitive. After your repricing period, you always have the option to refinance — and this is exactly where many borrowers find significant savings by switching to a lender with a better rate.

The Full Home Loan Application Process

Whether you apply directly to a bank or through a mortgage broker like Nook, the process generally follows these steps:

Total processing time from submission to release typically ranges from 30 to 60 working days for straightforward applications, though this varies by bank.

What If You Already Have a Home Loan?

If you purchased your house and lot a few years ago, there is a strong chance your current interest rate is higher than what is available today. Many homeowners who took loans between 2019 and 2023 are now paying 7.5% to 10% — and refinancing to a lower rate can generate meaningful monthly savings without extending your loan term.

Refinancing works by having a new lender pay off your existing loan balance and issue a fresh loan at a lower rate. The process involves similar documentation to a new purchase loan. For a complete walkthrough, see our guide on how to refinance your housing loan in the Philippines.

Nook's service is 100% free to borrowers — we are paid by the bank when your loan is approved. You get access to rates from multiple lenders without paying broker fees or application charges.

Key Costs to Budget For

Beyond the loan itself, buyers need to budget for one-time costs associated with the transaction:

These costs are separate from the seller's transaction costs (Capital Gains Tax, Transfer Tax), which are typically negotiated as part of the purchase agreement. Total buyer-side loan costs generally run between 2% and 3% of the loan amount.

Is House and Lot Financing Right for You?

Financing a house and lot is one of the largest financial commitments most Filipinos will ever make. The right loan can make homeownership accessible and affordable — the wrong one can cost hundreds of thousands of pesos in unnecessary interest. Before you commit to any lender or rate, compare at least three offers, read the repricing terms carefully, and understand what your payment will look like after the fixed period ends.

Nook was built specifically to make this comparison easier. We work with all major Philippine banks and surface the best rate for your specific situation — at zero cost to you.