Before you apply for a housing loan in the Philippines, the most important question is: how much can you actually borrow based on your salary? Philippine banks typically limit your monthly amortization to 30–35% of your gross monthly income — a figure known as your debt-to-income (DTI) ratio. That means a borrower earning 50,000 pesos a month may qualify for a maximum monthly payment of around 15,000 to 17,500 pesos, which translates to a loanable amount that varies significantly depending on the interest rate and term offered by your chosen bank.
This guide answers the most common questions Filipinos ask about housing loan calculators — from how to compute loanable amounts by salary, to understanding how BDO, BPI, RCBC, and other banks differ in their rates and qualifying criteria. If you already have a home loan and want to see how much you could save by switching to a lower rate, check out Nook's free home loan refinance calculator to estimate your potential savings in minutes.
Philippine banks use your gross monthly income (GMI) to determine your maximum monthly amortization, which is typically capped at 30% to 35% of your GMI. This is called the debt-to-income (DTI) ratio. To estimate your loanable amount, follow these steps:
- Multiply your GMI by 0.30 (or 0.35 for more lenient banks) to get your maximum allowable monthly payment.
- Use a loan amortization formula — or an online calculator — to find the principal amount that produces that monthly payment at the bank's offered interest rate and your chosen loan term.
- Multiply that principal by the bank's allowable loan-to-value (LTV) ratio, which is usually 70–80% of the property's appraised value.
Remember: your loanable amount is the lower of (a) what your income qualifies you for and (b) the LTV-based limit on the property. Both must be satisfied.
A housing loan calculator uses the standard amortizing loan formula to compute your fixed monthly payment:
Monthly Payment = P × [r(1+r)^n] ÷ [(1+r)^n − 1]
Where:
- P = principal loan amount
- r = monthly interest rate (annual rate ÷ 12)
- n = total number of monthly payments (loan term in years × 12)
For example, a 3,000,000 peso loan at 7% p.a. over 20 years:
- r = 7% ÷ 12 = 0.5833% per month
- n = 20 × 12 = 240 payments
- Monthly payment ≈ 23,259 pesos
Most calculators also show you a full amortization schedule — breaking down each payment into interest and principal — so you can see exactly how your balance decreases over time. Note that Philippine bank rates are typically fixed for an initial repricing period (e.g., 1, 3, or 5 years), then adjust to a new rate, so your actual payments may change after the fixed period ends.
On a gross monthly income of 30,000 pesos, your maximum allowable monthly amortization at a 30% DTI ratio is 9,000 pesos. Here is how your estimated loanable amount changes by loan term at a 7% p.a. interest rate:
- 15-year term: approximately 1,030,000 pesos
- 20-year term: approximately 1,157,000 pesos
- 25-year term: approximately 1,247,000 pesos
If you can qualify at a lower rate — for example, 5.99% p.a. — your loanable amount increases:
- 20-year term at 5.99%: approximately 1,258,000 pesos
Keep in mind that some banks may allow a higher DTI of 35%, which would raise your maximum monthly payment to 10,500 pesos and your loanable amount proportionally. A 30,000-peso salary also typically means you are targeting Pag-IBIG or affordable bank programs, as the loanable amounts here suit properties in the 1.2M–1.5M price range.
With a gross monthly income of 50,000 pesos, your maximum monthly amortization at 30% DTI is 15,000 pesos. Estimated loanable amounts at 7% p.a.:
- 15-year term: approximately 1,717,000 pesos
- 20-year term: approximately 1,928,000 pesos
- 25-year term: approximately 2,078,000 pesos
At the best available refinance rate of 5.99% p.a.:
- 20-year term: approximately 2,097,000 pesos
- 25-year term: approximately 2,323,000 pesos
A combined household income scenario (e.g., two earners each earning 25,000 pesos) is treated the same way by most banks — they assess total household GMI. At 50,000 pesos combined, you can comfortably target properties in the 2M–2.5M range with a standard 20% down payment, which keeps your loan within qualifying limits.
At a gross monthly income of 100,000 pesos, your maximum allowable monthly amortization at 30% DTI is 30,000 pesos. Estimated loanable amounts at 7% p.a.:
- 15-year term: approximately 3,433,000 pesos
- 20-year term: approximately 3,856,000 pesos
- 25-year term: approximately 4,157,000 pesos
At 5.99% p.a. (the best rate currently available through Nook):
- 20-year term: approximately 4,195,000 pesos
- 25-year term: approximately 4,646,000 pesos
This income bracket opens up a wide range of bank products. High-income earners also benefit the most from rate shopping — a 1% difference in rate on a 4,000,000 peso loan over 20 years can mean a difference of more than 400,000 pesos in total interest paid. See how current bank rates compare at Nook's home loan interest rates guide.
Housing loan rates in the Philippines vary by bank, loan amount, fixing period, and borrower profile. As of 2026, advertised rates from major banks generally fall in these ranges:
- BDO: from approximately 6.50% p.a. (1-year fixed)
- BPI: from approximately 6.25% p.a. (1-year fixed)
- Security Bank: from approximately 6.25% p.a.
- RCBC: from approximately 6.50% p.a.
- Metrobank: from approximately 6.75% p.a.
- PNB: from approximately 6.50% p.a.
- UnionBank: from approximately 6.50% p.a.
- EastWest Bank: from approximately 6.75% p.a.
- Pag-IBIG (HDMF): from 6.375% p.a. for socialized/economic housing
Through Nook, qualified borrowers can access rates as low as 5.99% p.a. — below the advertised floor of most major banks — because Nook aggregates offers from multiple lenders and negotiates on your behalf. The best rate for you depends on your loan amount, LTV, employment type, and the bank's current promotions. The key takeaway: never accept the first rate you are quoted. Shopping around or working with a broker like Nook can save you tens of thousands of pesos per year.
The loan term you choose involves a trade-off between monthly affordability and total interest cost. Here is a comparison for a 3,000,000 peso loan at 7% p.a.:
| Term | Monthly Payment | Total Payments | Total Interest Paid |
|---|---|---|---|
| 15 years | 26,952 | 4,851,360 | 1,851,360 |
| 20 years | 23,259 | 5,582,160 | 2,582,160 |
| 25 years | 21,188 | 6,356,400 | 3,356,400 |
Key observations:
- Choosing a 25-year term over a 15-year term saves you 5,764 pesos per month — but costs you an extra 1,505,040 pesos in total interest over the life of the loan.
- The 20-year term is often the sweet spot for Filipino borrowers — manageable monthly payments without excessive lifetime interest.
- If you can afford a shorter term, the interest savings are substantial. Alternatively, you can take a longer term for lower payments and make voluntary prepayments to reduce your principal faster when cash flow allows.
Here are the estimated monthly amortizations for a 3,000,000 peso housing loan across different interest rates and loan terms:
| Interest Rate | 15-year term | 20-year term | 25-year term |
|---|---|---|---|
| 5.99% p.a. | 25,309 | 21,481 | 19,290 |
| 7.00% p.a. | 26,952 | 23,259 | 21,188 |
| 8.00% p.a. | 28,672 | 25,093 | 23,149 |
| 9.00% p.a. | 30,428 | 26,992 | 25,181 |
| 10.00% p.a. | 32,238 | 28,953 | 27,261 |
The difference between 5.99% and 9% on a 20-year term is 5,511 pesos per month — or 66,132 pesos per year. Over the full 20 years, that gap grows to 1,322,640 pesos in additional interest. This is exactly why refinancing to a lower rate can be so valuable if you are currently paying 8% or above.
Yes — and this is one of the most underused financial strategies among Filipino homeowners. If your current housing loan carries a rate of 7% or higher, you may be able to significantly reduce your monthly payment by refinancing to a lower rate. Here is a concrete example:
- Current loan: 4,000,000 pesos outstanding balance, 8.5% p.a., 18 years remaining → monthly payment ≈ 37,948 pesos
- Refinanced loan: 4,000,000 pesos, 5.99% p.a., 20-year term → monthly payment ≈ 28,641 pesos
- Monthly savings: 9,307 pesos
- Annual savings: 111,684 pesos
Other options include making lump-sum prepayments to reduce your principal (which lowers future interest charges), or requesting a loan restructuring with your existing bank. However, refinancing to a bank offering a better rate typically yields the largest savings. Use Nook's refinance calculator to see your personalized savings estimate, or check the refinance break-even calculator to find out how quickly your savings outweigh any switching costs.
When using a calculator to assess a refinance decision, you need slightly different inputs than for a new purchase loan. Here is a step-by-step approach:
- Find your current outstanding balance — check your latest bank statement or loan billing notice. This is your new loan principal if you refinance.
- Note your remaining loan term — how many years/months are left on your current loan.
- Input your current rate to calculate what you are paying now.
- Input the new rate (e.g., 5.99% p.a.) with your preferred new term to calculate the new monthly payment.
- Compare the two monthly payments — the difference is your potential monthly saving.
- Account for refinancing costs — these typically include appraisal fees (5,000–10,000 pesos), notarial and documentary stamp tax, mortgage registration fees, and possibly a pre-termination penalty from your current bank (usually 1–3% of outstanding balance within the lock-in period).
- Compute your break-even point — divide total switching costs by your monthly saving to get the number of months to recover costs. If you plan to stay in the property longer than that, refinancing makes financial sense.
Nook handles all of the above for free — we compare rates across multiple banks, manage the paperwork, and help you decide if and when refinancing is right for your situation.