Which Bank Has the Lowest Housing Loan Interest Rate in the Philippines (2026)?
The honest answer: it depends on your loan amount, fixing period, and whether you walk in as a new customer or negotiate as an existing borrower. To give you a real apples-to-apples picture, we've gathered indicative rates from the Philippines' biggest banks below. All rates are annual, fixed for the period shown, and based on standard published or commonly offered terms as of 2026.
| Bank | 1-Year Fixed | 3-Year Fixed | 5-Year Fixed | 10-Year Fixed |
|---|---|---|---|---|
| BDO | 7.00% | 7.25% | 7.50% | 8.00% |
| BPI | 6.50% | 6.88% | 7.25% | 7.75% |
| Metrobank | 7.00% | 7.25% | 7.50% | 8.25% |
| Security Bank | 6.75% | 7.00% | 7.25% | 8.00% |
| RCBC | 7.25% | 7.50% | 7.75% | 8.25% |
| UnionBank | 7.50% | 7.75% | 8.00% | 8.50% |
| PNB | 7.25% | 7.50% | 7.75% | 8.50% |
| Chinabank | 7.00% | 7.25% | 7.50% | 8.25% |
| PSBank | 7.25% | 7.50% | 7.75% | N/A |
| EastWest Bank | 7.50% | 7.75% | 8.25% | N/A |
| Pag-IBIG (HDMF) | N/A | 6.375% | 6.375% | 6.50% |
| Nook (Best Available) | 5.99% | 5.99% | 5.99% | TBC |
Rates are indicative and subject to change. Bank rates shown are typical published or commonly negotiated rates. Pag-IBIG rates apply to qualified members on loans up to 6,000,000. Nook's 5.99% p.a. is the best rate currently available through Nook's broker network and is subject to lender credit assessment.
BDO vs BPI: Head-to-Head on Home Loan Rates
BDO and BPI are the two largest banks in the Philippines by assets, and both have active home loan programs. Here's how they stack up on the factors that matter most to a borrower.
BDO Home Loan
- Best advertised rate: 7.00% p.a. (1-year fixed)
- Loan amount: From 1,000,000
- Loan term: Up to 25 years
- Processing fee: Approx. 0.10% of loan amount
- Repricing: At end of fixed period, rate resets to prevailing market rate
- Notable perk: Wide branch network; accepts OFW borrowers with co-borrower
- Drawback: Rate not the lowest; repricing can push monthly payments significantly higher
BPI Home Loan
- Best advertised rate: 6.50% p.a. (1-year fixed)
- Loan amount: From 800,000
- Loan term: Up to 20 years
- Processing fee: Approx. 0.10%–0.50% depending on product
- Repricing: At end of fixed period, rate resets to prevailing market rate
- Notable perk: One of the most competitive published rates among private banks; strong digital application
- Drawback: Shorter max term than some competitors; strict income documentation requirements
On published rates alone, BPI edges out BDO — 6.50% vs. 7.00% on a 1-year fix. But both banks will reprice your loan after the fixed period ends, often to 8.50%–10.00% or higher depending on market conditions. That's the trap many Filipino homeowners fall into. For a deeper dive on BPI's competitive positioning, see our BPI vs Metrobank home loan comparison.
How Much Does a 1% Rate Difference Actually Cost You?
A 1 percentage point gap in your interest rate might sound small, but over a 20-year loan it translates to a jaw-dropping difference in total interest paid. Here's a concrete example using a 3,000,000 loan over 20 years:
| Interest Rate | Monthly Payment | Total Interest Paid | vs. 5.99% |
|---|---|---|---|
| 5.99% (Nook) | 21,480 | 2,155,200 | — |
| 6.50% (BPI 1-yr) | 22,328 | 2,358,720 | +203,520 more |
| 7.00% (BDO 1-yr) | 23,259 | 2,582,160 | +426,960 more |
| 7.50% (common refi) | 24,168 | 2,800,320 | +645,120 more |
| 8.00% (post-refix) | 25,093 | 3,022,320 | +867,120 more |
| 9.00% (high-rate loan) | 26,992 | 3,478,080 | +1,322,880 more |
| 10.00% (old loan) | 28,951 | 3,948,240 | +1,793,040 more |
If you're currently paying 9% on a 3,000,000 balance, refinancing to 5.99% through Nook could save you over 1,300,000 in total interest — that's a second car, years of school fees, or an emergency fund that actually exists. Calculations are based on a 20-year reducing balance amortisation and are rounded to the nearest peso for illustrative purposes.
Beyond BDO and BPI: The Full Philippines Bank Rate Landscape
Most Filipino borrowers only compare two or three banks when taking out or refinancing a home loan. But with over a dozen active lenders in the market, the difference between the best and worst rate on offer can be 3–4 percentage points — which, as the table above shows, equals over a million pesos on a mid-sized loan.
Pag-IBIG (HDMF): The Hidden Gem for Qualified Members
Pag-IBIG offers some of the lowest published rates in the market — as low as 6.375% p.a. for 3- and 5-year fixed periods — and their 30-year terms help keep monthly payments manageable. The catch: loan amounts are capped at 6,000,000, and you must be an active contributing member. If you qualify, Pag-IBIG should absolutely be part of your comparison. For a broader overview of how all major Philippine banks stack up, check out our Philippines bank home loan comparison for 2026.
Security Bank: Strong Mid-Market Option
Security Bank sits between BPI and the field at 6.75% on a 1-year fix. Their home loan product is well-regarded for fast processing and relatively flexible income documentation, which makes them worth including in any shortlist — especially for self-employed borrowers.
RCBC, UnionBank, PNB, and Others
These banks generally sit at 7.25%–8.50% depending on the fixing period. They can be competitive for specific borrower profiles (e.g., existing account holders, salary loan cross-sell customers), but for pure rate comparison they lag the market leaders. RCBC in particular has been more competitive recently on refinance deals — see how they compare in our UnionBank vs RCBC rate comparison.
Why Nook Beats Every Bank's Advertised Rate
When you apply for a home loan directly at a bank, you're getting that bank's rate — full stop. You have no leverage, no comparison, and no idea if the next bank over would give you a better deal. Nook works differently.
- We're a broker, not a bank. Nook is 100% independent and works across multiple lenders, so we can submit your application to the lender most likely to approve you at the best rate.
- Our service is completely free. Nook is paid by the lender, not the borrower. You pay nothing for Nook's comparison service, application assistance, or post-approval support.
- We've negotiated rates banks don't publish. The 5.99% p.a. rate available through Nook is not on any bank's website. It's a rate we've negotiated based on volume and borrower quality.
- We handle the paperwork. Home loan applications in the Philippines are notoriously document-heavy. Nook's team guides you through every requirement so nothing falls through the cracks.
- We specialise in refinancing. If you took out your home loan 3–7 years ago at a rate above 7%, there's a very high chance you can save significantly by refinancing today. Our calculator will show you exactly how much.
Who Should Refinance Right Now?
Refinancing makes the most sense when:
- Your current rate is 7.00% or higher
- You have at least 5 years remaining on your loan
- Your outstanding balance is 1,000,000 or more
- You haven't refinanced in the last 2–3 years
- You're approaching the end of a fixed-rate period and facing a large repricing
The general rule of thumb in the Philippines: if you can reduce your rate by 1.5 percentage points or more, refinancing will almost certainly pay off even after accounting for transfer costs, notarial fees, and any prepayment penalties. At the current spread between old loans (7%–10%) and what's available through Nook (5.99%), most homeowners who haven't refinanced recently are leaving serious money on the table.
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Compare My Options →Frequently Asked Questions
Which bank has the lowest housing loan interest rate in the Philippines in 2026?
Among major banks, BPI and Pag-IBIG (HDMF) offer some of the lowest published rates — BPI starts at around 6.50% p.a. on a 1-year fix, while Pag-IBIG offers 6.375% p.a. for qualified members on loans up to 6,000,000. However, through Nook's broker network, borrowers can access rates as low as 5.99% p.a. — lower than any bank's published walk-in rate. Nook's service is free to the borrower.
What is the current lowest home loan interest rate in the Philippines?
As of 2026, the lowest home loan interest rate available in the Philippines through Nook is 5.99% p.a. This is a negotiated rate not publicly advertised by any single bank. Among published bank rates, Pag-IBIG at 6.375% and BPI at 6.50% are among the most competitive for eligible borrowers.
Is BDO or BPI better for a home loan?
For most borrowers, BPI offers a lower starting rate (6.50% p.a. vs BDO's 7.00% p.a. on a 1-year fix). BDO has a wider branch network and is generally more flexible with OFW borrowers. However, both banks will reprice your loan after the fixed period, often to above 8.50%. If rate is your primary concern, comparing both alongside other lenders through a broker like Nook will give you the most complete picture.
How much can I save by refinancing my home loan in the Philippines?
The savings depend on your current rate, outstanding balance, and remaining term. As an example: on a 3,000,000 loan over 20 years, moving from 9.00% to 5.99% saves over 1,300,000 in total interest. Even dropping from 7.50% to 5.99% saves more than 645,000. Use Nook's free calculator to get a personalised savings estimate based on your actual loan details.
Is refinancing a home loan in the Philippines worth it?
Yes, in most cases — especially if your current rate is 7.00% or higher and you have at least 5 years remaining on your loan. The typical costs of refinancing in the Philippines (appraisal, notarial fees, registration) are usually recovered within 12–24 months of interest savings at today's rate levels. Nook's team can help you calculate the exact break-even point for your loan.
Does Pag-IBIG have the lowest home loan rate in the Philippines?
Pag-IBIG (HDMF) offers one of the lowest published rates at 6.375% p.a. for 3- to 5-year fixed terms, which is very competitive — but it's only available to active contributing members and the maximum loan amount is 6,000,000. For loans above this amount, or for non-Pag-IBIG members, bank and broker options like Nook (5.99% p.a.) will be more relevant.
What documents do I need to refinance my home loan in the Philippines?
Standard requirements include: valid government-issued ID, proof of income (payslips for employed borrowers, ITR and financial statements for self-employed), latest 3–6 months of bank statements, copy of your existing loan's statement of account, Transfer Certificate of Title (TCT) or Condominium Certificate of Title (CCT), and latest real property tax receipts. Nook's team will guide you through the exact list based on your lender and property type.
How long does home loan refinancing take in the Philippines?
The typical refinancing timeline in the Philippines is 4–8 weeks from complete document submission to loan release, though this can vary by lender and property type. Nook helps streamline the process by preparing your application for the most appropriate lender upfront, reducing the chance of delays due to incomplete documents or lender mismatch.
Is Nook's mortgage broker service really free?
Yes — 100% free to the borrower. Nook is compensated by the lending bank upon successful loan disbursement, similar to how insurance brokers work. You pay no broker fees, no consultation fees, and no application fees to Nook. The rate you receive through Nook is the same as or better than what you'd get going directly to the bank.