Refinance Housing Loan Rate Philippines 2026: What You Need to Know
If you took out a home loan in the Philippines two, five, or even ten years ago, there is a very good chance you are paying more interest than you need to. Refinancing your housing loan means replacing your existing loan with a new one — ideally at a lower interest rate — so that your monthly payments shrink and you keep more money in your pocket every single month.
This guide breaks down the current refinance housing loan rates in the Philippines for 2026, shows you exactly how much you could save, and explains what to look for when comparing banks. Whether your loan is with BDO, BPI, Metrobank, or even Pag-IBIG, the numbers below will help you make a smarter decision.
What Are the Current Housing Loan Refinance Rates in the Philippines?
As of 2026, refinance rates offered by Philippine banks typically range from 5.99% to 8.50% per annum, depending on the bank, the loan amount, the fixing period, and your credit profile. Here is a snapshot of what major lenders are offering:
- BDO: From 6.50% p.a. (1-year fixed) to 7.75% p.a. (5-year fixed)
- BPI: From 6.25% p.a. (1-year fixed) to 7.50% p.a. (5-year fixed)
- Metrobank: From 6.50% p.a. (1-year fixed) to 7.88% p.a. (5-year fixed)
- Security Bank: From 6.25% p.a. (1-year fixed) to 7.75% p.a. (5-year fixed)
- RCBC: From 6.50% p.a. (1-year fixed) to 8.00% p.a. (5-year fixed)
- UnionBank: From 6.75% p.a. (1-year fixed) to 8.00% p.a. (5-year fixed)
- PNB: From 6.75% p.a. (1-year fixed) to 8.25% p.a. (5-year fixed)
- Chinabank: From 6.50% p.a. (1-year fixed) to 7.88% p.a. (5-year fixed)
- EastWest Bank: From 6.75% p.a. (1-year fixed) to 8.00% p.a. (5-year fixed)
- Pag-IBIG (HDMF): From 5.75% p.a. (1-year fixed) — government-backed, for eligible borrowers
The best refinance rate currently available through Nook is 5.99% p.a. This is the rate that benchmark all your comparisons against. Even a seemingly small difference of 1% or 2% translates into hundreds of thousands of pesos in savings over the life of a typical home loan.
For a deeper look at which banks consistently offer the most competitive terms, check out our guide to the best banks to refinance a home loan in the Philippines.
How Much Can You Actually Save by Refinancing?
Let us run the numbers with a real-world example so you can see the impact clearly.
Example: 4,000,000 Loan, 20-Year Term
Suppose you have an outstanding loan balance of 4,000,000 with 20 years remaining and you are currently paying an interest rate of 8.50% p.a. — which is common for loans originated between 2018 and 2022.
- Current monthly payment at 8.50%: approximately 34,720
- New monthly payment at 5.99%: approximately 28,620
- Monthly savings: approximately 6,100
- Annual savings: approximately 73,200
- Total savings over 20 years: approximately 1,464,000
That is over 1.4 million pesos staying in your family's hands — not the bank's. And this does not account for what you could earn by investing or saving those monthly savings over time.
Example: 2,500,000 Loan, 15-Year Term
- Current rate: 7.50% p.a. | Monthly payment: approximately 23,150
- Refinanced rate: 5.99% p.a. | Monthly payment: approximately 21,090
- Monthly savings: approximately 2,060
- Total savings over 15 years: approximately 370,800
Even on a smaller loan, the savings are meaningful — and they are recurring, every single month.
Fixed Rate vs. Floating Rate: Which Should You Choose?
When refinancing, you will need to decide how long to fix your interest rate. Philippine banks typically offer fixing periods of 1, 2, 3, 5, 10, 15, 20, or 25 years. Here is what you need to know:
Short Fixing Periods (1–3 Years)
These come with the lowest initial rates — sometimes as low as 5.99% — but your rate will reprice at the end of the period. If interest rates rise before your next repricing, your payments could go up. Best for borrowers who plan to sell, pay off, or refinance again within a few years.
Medium Fixing Periods (5 Years)
The most popular choice among Filipino homeowners. You get a rate that is slightly higher than a 1-year fix, but you have five full years of payment certainty. This is a good balance of savings and stability.
Long Fixing Periods (10–25 Years)
If you want complete certainty for the life of your loan, a long fixed period gives you that — but expect rates to be 1% to 2% higher than a 1-year fix. Only a handful of banks offer truly long fixed terms in the Philippines.
What Factors Affect the Refinance Rate You Will Qualify For?
Banks do not give everyone the same rate. Your actual offered rate depends on several factors:
- Loan-to-Value (LTV) ratio: If you owe less than 70% of your property's current appraised value, you are in a strong position to negotiate a better rate.
- Credit history: Banks will review your payment record with your current lender. No missed payments = stronger application.
- Employment and income stability: Regular employees and established business owners typically get lower rates than self-employed borrowers with irregular income.
- Loan amount: Larger loan amounts (above 5,000,000) sometimes attract preferential pricing because the bank earns more absolute interest.
- The bank's current promotions: Philippine banks frequently run limited-time refinance promos, particularly in Q1 and Q3 of each year.
The True Cost of Refinancing: Fees You Must Factor In
Refinancing is not free — there are one-time costs involved. You need to make sure the long-term savings outweigh these upfront expenses. Common fees in the Philippines include:
- Prepayment penalty (current bank): Typically 1% to 3% of the outstanding balance if you are still within the fixed-rate period. This can be significant — on a 4,000,000 loan, a 2% penalty is 80,000.
- Processing fee (new bank): Ranges from 5,000 to 15,000 depending on the lender.
- Appraisal fee: Most banks require a fresh property appraisal. Expect to pay between 3,500 and 7,000.
- Notarial and legal fees: Approximately 5,000 to 10,000.
- Registration fees (RD): For transferring the mortgage annotation, typically 5,000 to 15,000 depending on the loan amount.
- Documentary Stamp Tax (DST): 1.5 per 200 of the loan amount — on a 4,000,000 loan, this is approximately 30,000.
Total one-time costs can range from 50,000 to 200,000 depending on your loan size. Use your monthly savings to calculate your break-even point — the number of months it takes for your savings to cover the upfront costs. If your monthly savings are 6,100 and your total fees are 120,000, your break-even is about 20 months. After that, every peso saved is pure gain.
How to Refinance Your Housing Loan: Step-by-Step
The refinancing process in the Philippines follows a predictable sequence. Here is what to expect:
- Check your current loan terms: Find out your outstanding balance, remaining term, current interest rate, and — critically — whether you are still within a lock-in period that triggers a prepayment penalty.
- Compare rates across multiple banks: Do not go to just one bank. Shop at least three to five lenders, or use a broker like Nook to get multiple offers with one application.
- Calculate your savings and break-even point: Use the framework above. If it takes less than 36 months to break even, refinancing almost always makes financial sense.
- Prepare your documents: Typically includes your latest payslips or ITR, bank statements (3 to 6 months), your existing loan statements, TCT/CCT, tax declaration, and government IDs.
- Submit your application: The bank will process your application, order an appraisal, and conduct credit checks. This typically takes 3 to 6 weeks.
- Loan release and old loan payoff: Once approved, the new bank pays off your existing lender directly. Your mortgage is then annotated with the new bank as the mortgagee.
The entire process can feel complex, but working with a mortgage specialist who understands Philippine refinancing can cut processing time and eliminate guesswork.
Is Now a Good Time to Refinance in 2026?
The short answer: yes, for most Filipino homeowners. Here is the context:
Between 2020 and 2023, the Bangko Sentral ng Pilipinas (BSP) went through a significant rate-hiking cycle to combat inflation. Many borrowers who repriced during that window are now locked into rates of 8% to 10%. As inflation has moderated in 2024 and into 2025, the BSP has begun easing its benchmark rate, and banks have passed some of those reductions on to borrowers through lower fixed-rate offers.
This means 2026 presents a genuine window of opportunity: if your loan repriced in 2022 or 2023 at a high rate, you could refinance now to a 5.99% to 6.50% rate and lock in those savings for the next 3 to 5 years — before rates potentially move again in either direction.
The best candidates for refinancing right now are homeowners whose current rate is above 7.50%, whose remaining loan term is more than 10 years, and who are past their prepayment penalty period.
Why Use Nook to Compare Refinance Rates?
Nook is the Philippines' first digital mortgage broker, and the service is completely free for borrowers. Here is what that means in practice:
- You fill out one application, and Nook submits it to multiple banks on your behalf.
- Banks compete for your loan, which means you get better offers than walking in to a single branch alone.
- Nook's mortgage specialists guide you through document preparation, bank negotiations, and the registration process.
- There are no broker fees charged to you — Nook earns a referral fee from the bank you choose, at no cost to you.
For homeowners who want to understand the full picture before applying, our complete guide to using a Filipino mortgage broker explains exactly how the process works and what questions to ask.