Housing Loan Requirements in the Philippines 2026: Complete Bank Checklist

Housing Loan Requirements in the Philippines 2026: Everything You Need to Know

Applying for a housing loan in the Philippines can feel overwhelming — especially when every bank seems to have a different checklist. Whether you're buying your first home, refinancing an existing loan, or investing in a second property, understanding exactly what documents and qualifications you need will save you weeks of back-and-forth with lenders.

This guide breaks down the requirements for the Philippines' major banks and Pag-IBIG (HDMF) so you can walk into any application fully prepared.

Who Can Apply for a Housing Loan in the Philippines?

Before gathering documents, you need to meet the basic eligibility criteria that virtually all lenders share. While specific thresholds vary, here are the standard requirements across BDO, BPI, Metrobank, Security Bank, and Pag-IBIG:

• Age: At least 21 years old at the time of application, and not older than 65 to 70 years old upon loan maturity (varies by bank)
• Citizenship: Filipino citizens, or foreign nationals married to a Filipino (with restrictions on land ownership)
• Income: Minimum gross monthly income of 30,000 to 50,000 depending on the lender and loan amount
• Employment: At least 2 years of continuous employment (for employed applicants) or 2 to 3 years of profitable business operations (for self-employed)
• Credit standing: No history of loan default or unpaid credit card balances with major Philippine banks

OFWs (Overseas Filipino Workers) are also eligible at most banks, including Pag-IBIG, provided they have an active remittance record and meet income requirements. Pag-IBIG is particularly OFW-friendly, as contributions can be made voluntarily from abroad.

Core Documents Required by All Lenders

No matter which bank you approach, expect to submit the following foundational documents:

Personal Identification

• Two valid government-issued IDs (passport, driver's license, SSS/GSIS ID, UMID, voter's ID, PRC ID)
• Marriage certificate (if applicable, authenticated by PSA)
• Birth certificate (PSA-authenticated, sometimes required)

Proof of Income

This is where requirements diverge based on your employment type. See the detailed breakdown by employment status below.

Property Documents

• Certified True Copy of the Transfer Certificate of Title (TCT) or Condominium Certificate of Title (CCT)
• Lot plan with vicinity map (certified by a licensed geodetic engineer)
• Tax Declaration for land and improvements
• Latest Real Property Tax receipt
• Contract to Sell or Deed of Absolute Sale (for purchase transactions)
• Building plans and specifications (for construction loans)

Income Document Requirements by Employment Type

For Employed Applicants

• Certificate of Employment (COE) with salary details, dated within the last 3 months
• Latest 1 to 3 months payslips
• ITR (BIR Form 2316 or 1700) for the past 1 to 2 years, stamped by the BIR or employer
• Employment contract (for probationary or contract employees)

For Self-Employed Applicants

• DTI or SEC registration of your business
• Audited Financial Statements (AFS) for the last 2 to 3 years
• ITR (BIR Form 1701) for the last 2 years, stamped by BIR
• Latest 6 months bank statements (savings and current accounts)
• Business permits and licenses
• List of clients or contracts (for freelancers or consultants)

For OFWs

• Employment contract or POEA-verified contract
• Proof of remittance (latest 3 to 6 months)
• OFW certificate or iDOLE card (if available)
• Consularized or apostilled documents if executed abroad
• Special Power of Attorney (SPA) in favor of a Philippine-based representative

Bank-by-Bank Requirements Comparison

BDO Housing Loan Requirements

BDO is the Philippines' largest bank and one of the most popular choices for home financing. Their loan amounts start at 500,000 and go up to 80% of the appraised property value. Key specifics:

• Minimum loan amount: 500,000
• Maximum loan-to-value (LTV): 80% for residential, 70% for condominiums
• Loan term: Up to 20 years
• Interest rate: Fixed for 1, 2, 3, 5, or 10 years, then repriced
• Additional requirement: BDO may require an active BDO savings account for loan disbursement

BPI Housing Loan Requirements

BPI Family Savings Bank (now merged with BPI) is known for competitive rates and a streamlined online application. Key specifics:

• Minimum loan amount: 400,000
• Maximum LTV: Up to 80% of appraised value
• Loan term: Up to 20 years
• BPI requires at least 1 year of continuous employment or 2 years of profitable business
• Online application available via BPI's website with digital document submission

Metrobank Housing Loan Requirements

Metrobank offers flexible fixing periods and accepts applications from both peso earners and OFWs. Key specifics:

• Minimum loan amount: 500,000
• Maximum LTV: 80% for house and lot, 70% for condominium units
• Loan term: Up to 25 years (one of the longest among private banks)
• Metrobank accepts combined spousal income for qualification purposes

Security Bank Housing Loan Requirements

Security Bank is known for offering some of the most competitive fixed rates among private banks and has a fast approval turnaround. Key specifics:

• Minimum loan amount: 1,000,000
• Maximum LTV: Up to 80%
• Loan term: Up to 20 years
• Security Bank is one of the few banks that openly publishes indicative rates online, making comparison easier

Pag-IBIG (HDMF) Housing Loan Requirements

Pag-IBIG Fund is often the most accessible option for middle-income Filipinos, offering lower rates and longer terms than most private banks. However, eligibility is limited to active Pag-IBIG members.

• Must have at least 24 monthly contributions (not necessarily consecutive)
• Maximum loan amount: 6,000,000 (as of 2025)
• Loan term: Up to 30 years
• Interest rate: As low as 5.75% p.a. for loans up to 450,000 (income-based)
• Additional documents: Pag-IBIG Member Data Form, Membership Verification Slip

If you currently have a Pag-IBIG loan and are considering moving to a private bank for a lower rate, read our guide on Pag-IBIG home loan refinancing to private banks to understand how that process works and whether it makes financial sense for you.

How Much Can You Borrow?

Philippine banks use a standard formula to determine your maximum loan amount: your monthly amortization must not exceed 30% to 35% of your gross monthly income. Here's how that plays out in practice:

• Gross monthly income of 50,000: Maximum monthly amortization of approximately 15,000 to 17,500. At 6.5% p.a. over 20 years, this qualifies you for a loan of roughly 2,000,000 to 2,300,000.
• Gross monthly income of 100,000: Maximum monthly amortization of approximately 30,000 to 35,000. At 6.5% p.a. over 20 years, this qualifies you for a loan of roughly 4,000,000 to 4,700,000.
• Gross monthly income of 200,000: Maximum monthly amortization of approximately 60,000 to 70,000. At 6.5% p.a. over 20 years, this qualifies you for a loan of roughly 8,000,000 to 9,400,000.

Combined household income (both spouses) is accepted by most banks, which significantly increases your borrowing capacity.

Understanding Loan-to-Value Ratio (LTV)

The Loan-to-Value ratio is the percentage of the property's appraised value that the bank is willing to lend. If a property is appraised at 5,000,000 and the bank offers 80% LTV, the maximum loan is 4,000,000 — meaning you need to put up at least 1,000,000 as a down payment.

Most banks use their own independent appraiser, and the appraised value may differ from the purchase price. The bank will always use the lower of the two figures. This is an important point that many first-time buyers overlook.

Common Reasons for Housing Loan Rejection

• Insufficient income documentation: Missing ITRs, unaudited financials, or payslips that don't match the COE
• Low credit score or derogatory credit history: Unpaid credit card bills, bounced checks, or past loan defaults
• Property issues: Title encumbrances, missing tax declarations, or properties located in flood-prone or landslide-risk areas
• Insufficient employment tenure: Less than 2 years with current employer without a strong prior track record
• Debt-to-income ratio too high: Existing car loans, personal loans, or credit card balances consuming too much of your income

If you've been rejected before or have credit concerns, our guide on refinancing with bad credit in the Philippines covers strategies to improve your eligibility.

Additional Costs to Budget For

Beyond the down payment, budget for these one-time costs when taking out a housing loan:

• Appraisal fee: 3,000 to 10,000 depending on property size and location
• Processing fee: 5,000 to 10,000 (some banks waive this)
• Documentary Stamp Tax: 1.5% of the loan amount
• Mortgage registration fee: Based on a sliding scale set by the Registry of Deeds
• Fire and MRI (Mortgage Redemption Insurance): Annual premiums folded into monthly amortization
• Transfer Tax: 0.5% of property value (local government)
• Capital Gains Tax or Creditable Withholding Tax: 6% of the selling price or zonal value, typically paid by the seller but sometimes negotiated

Tips for a Smooth Housing Loan Application

• Get a pre-approval or in-principle approval before making an offer on a property — this tells you your budget and shows sellers you're serious
• Clean up your credit: settle outstanding credit card balances at least 3 to 6 months before applying
• Don't apply for new credit cards or personal loans in the 6 months before your housing loan application
• Prepare digital copies of all documents — most banks now accept scanned submissions for initial review
• Apply to 2 to 3 banks simultaneously (through a broker) to compare terms without multiple hard credit inquiries hurting your score
• If you're self-employed, make sure your ITR accurately reflects your actual income — low declared income to minimize taxes will reduce your borrowing power

Should You Consider Refinancing Instead?

If you already have an existing housing loan and your fixed-rate period has ended, you could be paying 7% to 10% per year without knowing it. The best refinance rate currently available through Nook is 5.99% p.a. — a difference that can translate to hundreds of thousands of pesos over the remaining life of your loan.

For example, on a remaining loan balance of 3,000,000 with 15 years left, moving from 8.5% to 5.99% reduces your monthly payment by approximately 3,900 pesos — or around 702,000 pesos in total interest savings over the loan term.

Nook's service is completely free to borrowers. We compare rates from BDO, BPI, Metrobank, Security Bank, RCBC, UnionBank, Chinabank, EastWest Bank, and more — all in one application. Learn more about how to refinance your housing loan in the Philippines to see if you qualify.