A Better Job, A Bigger Problem
Marco Reyes had just landed what he called his "dream job" — a Senior Marketing Manager role at a multinational FMCG company in Bonifacio Global City, with a base salary of 120,000 pesos a month, nearly double what he had been earning before. At 34, it felt like everything was finally falling into place.
He and his wife, Camille, had been paying off their home loan in Antipolo for five years — a 4,200,000 peso loan originally taken out with Metrobank at 8.75% per annum. Their monthly amortization was 41,800 pesos. With Marco's new salary, they finally felt financially confident enough to explore refinancing and lower that monthly burden.
"I figured, I'm earning more now, my credit history is clean, we've never missed a payment in five years — this should be easy," Marco told us.
It wasn't.
The First Rejection — And the Reason Behind It
Marco applied directly to BPI, hoping to take advantage of a promotional fixed rate he had seen advertised. The loan officer was friendly, walked him through the requirements, collected his documents — then came the follow-up call two weeks later.
"Sir, your application has been placed on hold. Our credit policy requires that employed applicants be regularized or have completed their probationary period before we can process a refinance application."
Marco was three months into a six-month probation. In the bank's eyes, his 120,000-peso monthly salary barely existed yet. It could not be used as the basis for loan serviceability until he had formal regular employment status.
He tried Security Bank next. Same answer. Then RCBC. Also declined to process.
"It was disheartening," Camille recalled. "Here we are, actually in a better financial position than we've ever been, and we couldn't get anyone to help us."
Why Banks Treat Probationary Employment Differently
Marco's situation is more common than most people realize. Philippine banks classify employment into distinct categories when assessing refinance applications — and probationary employees occupy an uncertain middle ground.
Here's the core issue: under Philippine labor law, an employer can terminate a probationary employee without cause within the probation period. From a bank's risk perspective, that means an applicant's income is not yet guaranteed. Even if the salary is high, the bank cannot be certain that income will continue past the probation end date.
Most major banks — including BDO, BPI, Metrobank, and Security Bank — require at least one of the following before approving a refinance for an employed borrower:
- A certificate of regular employment (confirming probation has been completed)
- A minimum of two years of continuous employment with the current employer
- Proof of regularization from the current employer (even if early regularization)
Some banks will consider a probationary employee if the applicant can show a co-borrower who is already regularly employed, or if the applicant has a strong existing relationship with that specific bank.
This is worth knowing if you're a young professional navigating home loan refinancing for the first time — employment status documentation often matters as much as your actual income figures.
What Marco Did Next
About a month after his third rejection, Marco came across Nook through a Facebook group for Filipino homeowners. A fellow member had posted about refinancing successfully under complicated circumstances, and Nook's name kept coming up in the replies.
He submitted his details through Nook's online form and had a call with a mortgage advisor the following day.
"The advisor didn't give me false hope," Marco said. "She was honest — she said a few banks wouldn't be an option right now, but she wanted to look at the full picture before ruling anything out."
The advisor assessed Marco's situation across several dimensions:
- Five years of spotless repayment history on the existing Metrobank loan
- A combined household income (Camille works as a government nurse earning 42,000 pesos monthly) of 162,000 pesos
- Estimated current property value of approximately 6,500,000 pesos — well above the outstanding loan balance of roughly 3,600,000 pesos
- An offer letter and employment contract from Marco's new employer, showing confirmed compensation and benefits
- An early regularization clause in Marco's contract stating that regularization could occur before the standard six-month period at management discretion
That last detail was significant.
The Strategy That Worked
Nook's advisor identified two realistic pathways for Marco.
Option 1: Apply with Camille as the primary borrower. Since Camille was a permanent government employee with a stable income, she could be listed as the primary applicant, with Marco as co-borrower. Some banks are more flexible about the co-borrower's employment status when the primary borrower's income is verifiable and sufficient.
Option 2: Request early regularization from Marco's employer. Given the early regularization clause in his contract, Marco could formally request that HR process his regularization ahead of schedule. With his strong performance in the first three months, his manager was willing to support the request.
They pursued both options simultaneously. Within three weeks, Marco received his regularization documents from HR — he was now a permanent employee, four months ahead of the original end date.
Nook resubmitted the application to two banks. One came back with a conditional approval within ten days.
The Numbers That Made It Worth It
The approved refinancing offer came in at 5.99% per annum fixed for three years on an outstanding balance of 3,600,000 pesos, with the remaining term extended slightly to manage monthly cashflow.
Here is how the numbers compared:
- Old monthly amortization: 41,800 pesos (at 8.75% on original 4,200,000 peso loan)
- New monthly amortization: 31,200 pesos (at 5.99% on refinanced 3,600,000 peso balance)
- Monthly savings: 10,600 pesos
- Annual savings: 127,200 pesos
- Savings over 3-year fixed period: 381,600 pesos
"I kept staring at that number," Marco said. "Almost 400,000 pesos. That's a trip abroad. That's an emergency fund. That's the down payment on a car we've been putting off."
And Nook's fee for all of this? Zero. The service is completely free to borrowers.
What Probationary Employees Should Know Before Applying
Marco's story has a happy ending, but it required persistence and a bit of fortunate timing with the early regularization. Not everyone will have that same option available. Here is a practical guide based on what actually happens during the refinancing process for probationary employees.
Documents That Help Your Case
- Your original employment contract with the new employer, showing salary and regularization terms
- A certificate of employment from your previous employer showing tenure and compensation (demonstrates employment stability over time)
- Payslips from both your old and new employer
- Income tax returns (ITR) from the previous year — this provides a verified income baseline even if current employment is probationary
- Bank statements from the last six to twelve months showing consistent salary credits
Strategies That Improve Approval Odds
- Use a co-borrower who is regularly employed. A spouse, sibling, or parent with stable employment can significantly strengthen an application.
- Apply to the bank where your salary is credited. Banks with an existing relationship — particularly the one receiving your payroll — may apply more flexible internal policies.
- Check your contract for early regularization clauses. Many Philippine employers include this provision. If your performance supports it, it is worth formally requesting.
- Wait for regularization if timing allows. If you are within two months of completing your probation, it may be worth waiting before submitting the application.
- Highlight your existing loan's repayment record. Five or more years of on-time payments is a meaningful indicator of creditworthiness that some banks weigh heavily.
Who Is Most Likely to Succeed
Borrowers in probationary status have the strongest chance of approval when they have a co-borrower with regular employment status, a low loan-to-value ratio (meaning the property is worth significantly more than the outstanding loan), and a long track record of repayment on their existing home loan. If your situation includes a higher debt-to-income ratio alongside probationary status, the combination creates more complexity — but it is still worth exploring before assuming an application will fail.
Marco's Advice to Anyone in the Same Situation
"Don't let the banks discourage you into doing nothing," Marco said. "The worst thing I could have done was accept those first three rejections as the final answer. I was still paying 41,800 pesos a month for three extra months while I figured things out. That's 125,000 pesos I can't get back."
Camille added something worth repeating: "Talk to someone who knows the system. We were going bank to bank on our own and getting nowhere. Once we had a broker who knew which doors were actually open, the whole process moved fast."
Nook works with all major Philippine banks and lenders, and the team's job is to match your specific situation — including non-standard employment circumstances — to the lenders most likely to approve. There is no cost to the borrower, and no obligation after the initial consultation.
If you are currently in a probationary period and unsure whether refinancing is even possible, the honest answer is: it depends on your full picture. The only way to know is to have someone look at that picture properly.