How to Refinance Home Loan with Co-borrower Philippines

A co-borrower — sometimes called a co-maker or joint borrower — is a person who applies for the refinanced home loan alongside the primary borrower. Both parties are equally and directly responsible for repaying the loan. This is different from a guarantor, who only becomes liable if the primary borrower defaults. Because co-borrowers share full legal and financial responsibility, Philippine banks count both incomes when assessing your loan capacity, which can significantly improve your chances of approval and the terms you qualify for. When you refinance with a co-borrower, the new bank will evaluate both applicants' credit history, employment, and income, and both names will appear on the loan agreement and mortgage documents.

Philippine banks typically require that your co-borrower be an immediate family member, though the exact rules vary by lender. The most commonly accepted co-borrowers are:

• Spouse — Most banks actually require married borrowers to include their spouse as co-borrower by default.
• Parents or parents-in-law — Accepted by most banks, subject to maximum age limits at loan maturity (usually 65–70 years old).
• Siblings — Accepted by many banks, particularly if the sibling is living with you or has a documented financial relationship.
• Children — Adult children (at least 21 years old) are accepted by most lenders.
• Other relatives — Some banks accept cousins, aunts, or uncles on a case-by-case basis.

Non-relatives (such as business partners or friends) are generally not accepted as co-borrowers by Philippine banks. If you're unsure whether your intended co-borrower qualifies, Nook can check eligibility across multiple banks simultaneously at no cost to you.

Yes — in two important ways. First, if your co-borrower has a strong credit history and stable income, the combined financial profile you present to the bank is stronger, which makes lenders more willing to offer competitive rates. Second, and perhaps more importantly, a co-borrower's income allows you to qualify for a larger loan or a longer term, which can affect your monthly amortization even if the headline rate stays the same. For example, if you're currently paying 8.5% per annum on a 3,000,000 loan, refinancing to 5.99% p.a. — the best rate currently available through Nook — would reduce your monthly payment by roughly 4,400 pesos on a 20-year term. Adding a co-borrower with solid income can help you clear the bank's debt-service-ratio requirements to unlock exactly this kind of offer. The co-borrower doesn't guarantee a rate reduction on its own, but it removes barriers that might otherwise prevent you from accessing the lowest available rates.

Both the primary borrower and co-borrower must submit a full set of documents. For the co-borrower, banks in the Philippines typically require:

• Valid government-issued IDs — at least two (e.g., passport, driver's license, SSS/GSIS ID, PRC ID)
• Proof of income:
  • Employed: Latest 3 months' payslips, Certificate of Employment with compensation, and latest ITR (BIR Form 2316)
  • Self-employed: Latest 2 years' ITR with audited financial statements, Business Registration (DTI/SEC)
  • OFW: Employment contract, POEA certification, latest remittance records
• Proof of relationship to the primary borrower — PSA Birth Certificate, Marriage Certificate, or other relevant documents
• Filled-out bank application form
• Latest utility bill or proof of billing (for address verification)

The primary borrower will additionally need to provide all property documents: TCT/CCT, tax declaration, and the latest Statement of Account from the existing lender. Nook will give you a complete, bank-specific checklist once you start your application so nothing is missed.

Yes — refinancing is one of the best opportunities to change the co-borrower arrangement on your home loan, because you are effectively opening a brand-new loan with the new bank. Here are the common scenarios:

• Adding a co-borrower: If your original loan was in your name alone but you now want to add your spouse or a family member, this is straightforward to do at refinancing. Both parties simply apply together with the new bank.
• Removing a co-borrower: For example, after a separation or divorce, or when the original co-borrower no longer wishes to remain liable. The primary borrower must demonstrate sufficient income to qualify independently, or a new co-borrower must be added in replacement.
• Replacing a co-borrower: Swapping one co-borrower for another (e.g., replacing a parent with a spouse) is handled the same way — the new co-borrower completes a full application as part of the refinancing process.

Note that changing the co-borrower on an existing loan (without refinancing) is very difficult and requires the current bank's approval. Refinancing gives you a clean slate. If your current co-borrower arrangement has become complicated, this may be another strong reason to refinance now.

Your savings depend on your outstanding loan balance, remaining term, and the difference between your current rate and the new rate. Here are three illustrative examples based on refinancing to 5.99% p.a. — the best rate currently available through Nook:

Having a co-borrower doesn't directly change these numbers — but it may be the factor that allows you to qualify for the 5.99% rate in the first place, by satisfying the bank's income and debt-service requirements. Nook's mortgage specialists can run a precise calculation for your specific situation at no charge.

Here is how the process typically works when you use Nook to refinance with a co-borrower:

1. Submit your details online — Fill out Nook's free online form with basic information about you, your co-borrower, your property, and your existing loan. This takes about 10 minutes.
2. Get matched with the best offers — Nook searches across BDO, BPI, Metrobank, Security Bank, RCBC, UnionBank, Chinabank, EastWest Bank, and more to find the lowest rates you and your co-borrower qualify for.
3. Choose your preferred bank — Your Nook mortgage specialist will walk you through the offers and help you select the best fit based on rate, fees, and term.
4. Prepare and submit documents — Both you and your co-borrower compile the required documents (Nook provides a complete checklist). Nook assists with submission.
5. Bank credit evaluation — The bank assesses both applicants' credit profiles and the property. This usually takes 2–4 weeks.
6. Loan offer and signing — Once approved, you review and sign the loan documents. Your new bank pays off your old lender.
7. Title transfer and annotation — The Real Estate Mortgage is transferred to the new bank. Nook's team monitors this process end-to-end.
8. Start saving — Your first payment to the new bank begins, typically at the lower rate.

End-to-end, the refinancing process in the Philippines usually takes 6–10 weeks. Nook's service is 100% free to you — banks pay Nook a referral fee, so you pay nothing.

Yes — many Philippine banks accept OFWs as co-borrowers, and in some cases an OFW's income can significantly strengthen a refinancing application. OFW co-borrowers typically need to provide:

• Valid passport and work visa or residence permit in the country of employment
• POEA-verified employment contract or OWWA membership certificate
• Latest 3–6 months of payslips or employment certification from their overseas employer
• Latest 3–6 months of remittance records (showing money sent back to the Philippines)
• Consularized or apostilled documents if the co-borrower cannot be physically present to sign in the Philippines

One practical consideration: if the OFW co-borrower cannot return to the Philippines to sign documents, they may need to execute a Special Power of Attorney (SPA) in favor of the primary borrower or another authorized representative. This SPA must be notarized and authenticated at the Philippine consulate in the country where the OFW is based. Nook's team is experienced in handling OFW co-borrower applications and can guide you through the additional steps involved. If the primary borrower's income is the challenge rather than the co-borrower's, you may also want to read our guide on refinancing with a challenging credit or income profile.

No — in most cases, a co-borrower does not need to be a co-owner of the property being refinanced. The co-borrower is primarily on the loan for income and credit purposes, not to claim ownership. The title (TCT or CCT) can remain solely in the primary borrower's name, or in both names if you choose to include the co-borrower on the title. However, there are a few nuances to be aware of:

• If your property is registered under both you and your co-borrower's names already, both parties must consent to the mortgage.
• If the property is in your name alone, the co-borrower signs as a co-maker on the loan agreement but does not necessarily appear on the title.
• Married couples: Under Philippine law, property acquired during marriage is generally conjugal property. This means a spouse will typically need to sign as co-borrower regardless of whose name is on the title.
• Some banks may require the co-borrower to be a co-owner if the co-borrower's income is the primary basis for loan qualification — this varies by lender.

Nook will clarify the exact requirements of each bank before you apply, so there are no surprises during processing.

The typical refinancing timeline in the Philippines is 6 to 10 weeks from application to loan release, though this can vary depending on how quickly documents are submitted and how busy the bank's credit team is. Here is a rough breakdown:

• Weeks 1–2: Application, document preparation and submission
• Weeks 2–5: Bank credit evaluation and property appraisal
• Weeks 5–7: Loan approval, document signing, and loan release to pay off old bank
• Weeks 7–10: Title transfer and mortgage annotation with the new bank

As for costs, the borrower typically shoulders:

• Appraisal fee: Approximately 3,500–6,000 pesos (paid to the bank's accredited appraiser)
• Notarial and legal fees: Approximately 5,000–15,000 pesos
• Registration and transfer fees: Varies by local Registry of Deeds, typically 10,000–30,000 pesos depending on loan amount
• Mortgage Redemption Insurance (MRI) and Fire Insurance: Required by all banks, usually bundled into the first year's fees
• Prepayment penalty from existing bank: Check your current loan terms — most Philippine banks charge 1–3% of the outstanding balance if you pay off early within the lock-in period

Nook's service itself is completely free to you. Nook is paid by the bank you ultimately choose, so you get professional mortgage brokering at zero cost. For those currently with Pag-IBIG who are considering moving to a private bank, our guide on Pag-IBIG refinancing to private banks explains the specific costs and steps involved in that transition.