Mortgage Loan Interest Rates in the Philippines: A Complete 2026 Bank-by-Bank Guide
If you have a home loan in the Philippines, the interest rate you're paying is almost certainly the single biggest factor determining how much your property ultimately costs you. Yet most Filipino homeowners have never compared their rate against the market — and banks aren't exactly rushing to tell you when better deals exist.
This guide breaks down everything you need to know about mortgage loan interest rates in the Philippines in 2026: how they're structured, what each major bank is offering, how to calculate your real cost, and what you can do if you're overpaying.
How Philippine Mortgage Interest Rates Are Structured
Before comparing numbers, it helps to understand how Philippine banks price home loans. Unlike some countries where 30-year fixed rates are standard, Philippine mortgages typically use a re-pricing structure — your rate is fixed for an initial period (called the fixing period), then resets to a new rate based on market conditions.
Common Fixing Periods
- 1-year fixed: Lowest initial rate, but resets annually — highest uncertainty
- 3-year fixed: A popular balance of low rate and short-term certainty
- 5-year fixed: Most commonly chosen by borrowers who want stability
- 10-year fixed: Available at select banks; higher rate but long-term peace of mind
- 20-year fixed: Rare in the Philippines; typically offered only by Pag-IBIG
The key insight: a lower 1-year rate looks attractive, but if it resets upward in year two, your actual total cost may be higher than a longer-term fixed option. Always model the full loan term, not just the initial period.
2026 Mortgage Rate Ranges by Bank
Rates below reflect publicly advertised ranges for standard home purchase and refinance loans as of early 2026. Actual rates depend on loan amount, term, LTV ratio, income profile, and negotiation. All rates are per annum.
BDO Unibank
One of the Philippines' largest home loan lenders. BDO offers competitive rates especially for payroll account holders. Indicative ranges: 1-year fixing: 6.50%–7.25% | 3-year fixing: 7.00%–7.75% | 5-year fixing: 7.50%–8.25%. BDO also runs periodic promotions with below-market teaser rates — worth calling their branches to check current offers.
BPI (Bank of the Philippine Islands)
BPI is consistently competitive on home loans and is known for fast processing. Indicative ranges: 1-year fixing: 6.50%–7.00% | 3-year fixing: 7.00%–7.50% | 5-year fixing: 7.50%–8.00%. BPI Family Savings Bank (a BPI subsidiary) often has slightly different terms suited to mid-income borrowers.
Metrobank
Metrobank offers home loans with flexible terms and is strong in developer tie-ups. Indicative ranges: 1-year fixing: 6.75%–7.50% | 3-year fixing: 7.25%–8.00% | 5-year fixing: 7.75%–8.50%. Metrobank sometimes offers lower rates for properties within their accredited developer network.
Security Bank
Security Bank has positioned itself aggressively in the home loan market and offers some of the most competitive rates among commercial banks. Indicative ranges: 1-year fixing: 6.25%–7.00% | 3-year fixing: 6.75%–7.50% | 5-year fixing: 7.25%–8.00%.
PNB (Philippine National Bank)
PNB offers straightforward home loan products with broad geographic coverage. Indicative ranges: 1-year fixing: 6.75%–7.75% | 3-year fixing: 7.25%–8.25% | 5-year fixing: 7.75%–8.75%.
RCBC (Rizal Commercial Banking Corporation)
RCBC offers competitive rates and has been active in the refinance segment. Indicative ranges: 1-year fixing: 6.50%–7.25% | 3-year fixing: 7.00%–7.75% | 5-year fixing: 7.50%–8.25%.
UnionBank
UnionBank blends digital convenience with competitive loan pricing. Indicative ranges: 1-year fixing: 6.75%–7.50% | 3-year fixing: 7.25%–8.00% | 5-year fixing: 7.75%–8.50%.
Chinabank (China Banking Corporation)
Chinabank is strong in the Chinese-Filipino business community and offers solid home loan products. Indicative ranges: 1-year fixing: 7.00%–7.75% | 3-year fixing: 7.50%–8.25% | 5-year fixing: 8.00%–8.75%.
PSBank (Philippine Savings Bank)
PSBank, the thrift banking arm of the Metrobank Group, offers home loans with relatively accessible entry requirements. Indicative ranges: 1-year fixing: 7.25%–8.00% | 3-year fixing: 7.75%–8.50% | 5-year fixing: 8.25%–9.00%.
EastWest Bank
EastWest Bank is a growing player in retail banking with home loan products targeting the mass market. Indicative ranges: 1-year fixing: 7.00%–8.00% | 3-year fixing: 7.50%–8.50% | 5-year fixing: 8.00%–9.00%.
Pag-IBIG (HDMF) — Government Housing Fund
Pag-IBIG is in a class of its own. As a government fund, it offers the most affordable rates in the market and is the go-to option for formal-sector employees contributing to the fund. Key rates for 2026: 6.375% p.a. for a 1-year fixing, rising to 10.00% p.a. for a 30-year fixed term. The 5-year fixed rate sits around 8.00%. Pag-IBIG allows loan amounts up to 6,000,000 for regular members, with up to 70,000,000 under the Pag-IBIG Fund II program for higher-income members. Processing can be slower than commercial banks but the rate savings are significant.
Landbank of the Philippines
Landbank offers home loans primarily targeting government employees and agrarian reform beneficiaries. Rates are competitive: 1-year fixing: 6.50%–7.00% | 5-year fixing: 7.50%–8.00%. Strong option for those in the public sector.
The Real Cost of a High Rate: A Worked Example
Let's make this concrete. Suppose you have a home loan with an outstanding balance of 3,500,000 and 20 years remaining on the term.
- At 8.50% p.a.: Monthly payment ≈ 30,380 | Total interest over 20 years ≈ 3,791,200
- At 5.99% p.a.: Monthly payment ≈ 25,080 | Total interest over 20 years ≈ 2,519,200
- Difference: Monthly savings of ≈ 5,300 | Total savings over 20 years ≈ 1,272,000
That's over 1.2 million pesos in interest savings — simply by moving to a better rate. This is why refinancing is one of the highest-impact financial decisions a Filipino homeowner can make. Use our home loan refinance calculator to model your own numbers in minutes.
Fixed vs. Variable: Which Should You Choose?
This is the most common question we get. Here's a practical framework:
Choose a Longer Fixed Period If:
- You want predictable monthly payments for budgeting
- You expect interest rates to rise (rates are already rising or at a cyclical low)
- You're stretched on monthly cash flow and can't absorb a rate spike
- You plan to keep the property for more than 5 years
Choose a Shorter Fixed Period If:
- You expect rates to fall in the near term (giving you a chance to re-price downward)
- You plan to sell or fully pay off the loan within 3–5 years
- You have strong cash reserves and can handle payment fluctuations
- The rate differential between 1-year and 5-year fixing is unusually large (more than 1.5%)
For most Filipino homeowners in 2026, a 3-year or 5-year fixed period offers the most sensible balance between rate competitiveness and stability.
What Factors Affect the Rate You're Offered?
Published rates are starting points. Your actual rate depends on several factors:
- Loan-to-Value (LTV) ratio: Borrowing 60% of the property value typically gets a better rate than borrowing 80%
- Loan amount: Larger loans (above 5,000,000) often qualify for preferential pricing
- Income profile: Salaried employees at large companies, OFWs with documented remittances, and self-employed borrowers with strong financials all have different risk profiles
- Existing relationship: Payroll account holders often receive 0.25%–0.50% rate discounts at their bank
- Negotiation: Banks have pricing flexibility — especially for well-qualified borrowers or large loan amounts
- Developer tie-ups: Buying within a developer's accredited bank network can unlock promotional rates
When Does Refinancing Make Sense?
If you took out your home loan before 2022 — or during any period when rates were higher than today's best offers — there's a good chance you're overpaying. The general rule of thumb: refinancing is worth seriously exploring when the rate difference between your current loan and available market rates is 0.50% or more.
Beyond the rate, consider the total cost of refinancing (legal fees, appraisal, processing fees) against your projected savings. You want to ensure you'll break even before you plan to sell or fully repay the loan. For a clear picture, try our refinance break-even calculator to see exactly how long it takes for your savings to outweigh your refinancing costs.
Through Nook, the best available refinance rate in 2026 is 5.99% p.a. — well below what most borrowers are currently paying. And Nook's service is completely free to borrowers: no broker fees, no hidden charges.
How to Get the Best Mortgage Rate: Step-by-Step
- Know your current rate and outstanding balance. Pull out your latest loan statement.
- Check your remaining term. The more years left, the greater the potential savings from refinancing.
- Compare at least 3–5 banks. Don't accept the first offer — even small differences compound significantly over time.
- Use a mortgage broker. A broker like Nook submits to multiple banks simultaneously, saving you weeks of legwork and often securing rates not publicly advertised.
- Read the fine print on repricing. Ask: what happens to my rate after the fixing period? Is there a penalty for early repayment?
- Calculate your break-even point. Refinancing has upfront costs — make sure the math works before you sign.
Bottom Line
Philippine mortgage rates in 2026 range from as low as 5.99% p.a. (available through Nook) to well above 9% for older loans or less competitive lenders. The gap between the best and worst rates on a 3,500,000 loan can mean more than a million pesos in extra interest paid over a 20-year term.
The most important action you can take today is to find out exactly what rate you're on, compare it against the market, and — if there's a meaningful gap — explore refinancing. Nook makes that process simple, fast, and completely free.