What Is the Maximum Loan-to-Value Ratio for Refinancing in Philippines?

The loan-to-value ratio compares the amount you want to borrow against the current appraised value of your property. In a refinancing transaction, it tells the bank how much of the property's value they would be lending — and therefore how much risk they are taking on.

For example, if your property is appraised at 5,000,000 and you want to refinance an outstanding loan balance of 3,500,000, your LTV ratio is 70% (3,500,000 divided by 5,000,000). The remaining 30% — or 1,500,000 — represents your equity: the portion of the property you own outright. Banks use this figure to decide whether to approve your refinancing, at what interest rate, and under what terms.

A lower LTV ratio is better for the borrower because it signals lower risk to the lender. This typically results in easier approval and access to the most competitive interest rates. A higher LTV means the bank has less of a cushion if property values drop or if you default, so lenders either cap approvals at a maximum LTV or charge a premium for higher-risk loans.

For most private banks in the Philippines, the maximum LTV ratio for a refinancing transaction is 80%. This is the industry standard across BDO, BPI, Metrobank, Security Bank, RCBC, UnionBank, Chinabank, and most other major lenders. In practice, this means you must have built up at least 20% equity in your property before a standard refinancing application will be considered.

A small number of banks will stretch to 85% in certain circumstances — typically for borrowers with strong credit profiles, stable employment, and properties in high-demand locations — but this is the exception rather than the rule. Going above 85% LTV through a private bank refinancing is extremely rare in the Philippine market.

It is worth noting that these are maximum caps, not guarantees. A bank may approve your application but offer a lower LTV limit based on their internal assessment of your income, credit history, property type, and location. Always ask your lender for their specific policy before submitting documents.

The formula is straightforward: divide your outstanding loan balance by your property's current appraised value, then multiply by 100 to get a percentage.

LTV = (Outstanding Loan Balance ÷ Current Appraised Value) × 100

Here is a practical example. Suppose you originally borrowed 4,000,000 ten years ago and your outstanding balance is now 2,800,000. You recently had your property appraised and it came back at 6,500,000. Your LTV would be: 2,800,000 ÷ 6,500,000 = 43%. That is well within the 80% maximum, and at that level you would likely qualify for the most competitive rates available.

Two important points to keep in mind: First, banks use the appraised value at the time of your refinancing application — not your original purchase price and not your own estimate. If property values in your area have risen significantly, your LTV may be lower than you expect, which works in your favor. Second, if you are doing a cash-out refinancing (borrowing more than your outstanding balance), the new loan amount is what goes into the numerator, not just your existing balance.

Yes, although the 80% maximum is the most common benchmark, individual banks have their own policies that can vary by product, property type, and borrower profile. Here is a general overview based on current market practice:

• BDO, BPI, Metrobank: Typically up to 80% LTV for house-and-lot in Metro Manila and key provincial cities. Some flagship products allow up to 80% for condominiums as well.
• Security Bank, RCBC, UnionBank: Generally 70–80% LTV depending on the property and borrower profile. Security Bank is known for being competitive on condo refinancing.
• Chinabank, EastWest Bank, PSBank: Usually 70–80% LTV; policies can be stricter for properties outside major urban centers.
• Robinsons Bank, PNB: 70–80% LTV is the typical range; PNB can be more flexible for government employees.
• Pag-IBIG (HDMF): Has its own LTV framework — see the question on Pag-IBIG below.

Because policies change and are sometimes negotiable depending on the borrower's overall profile, working with a mortgage broker like Nook lets you compare the actual LTV limits that apply to your specific property and financial situation across multiple lenders simultaneously — without spending weeks gathering information on your own.

In many cases, yes. Philippine banks generally view condominiums as slightly higher-risk collateral compared to house-and-lot properties, mainly because condo values can be more volatile and units in certain buildings or locations are harder to liquidate if a borrower defaults. As a result, some lenders apply a lower maximum LTV for condo refinancing — commonly 70% rather than 80%.

That said, this is not a universal rule. Several banks do offer up to 80% LTV on condominiums, particularly for units in established, well-maintained developments in high-demand locations like BGC, Makati, Ortigas, and Alabang. If you are refinancing a condo in BGC, for instance, you may find lenders willing to go up to 80% LTV given the strong and liquid real estate market in that area.

Factors that can positively affect LTV approval for a condo unit include: the reputation and financial health of the developer, the age of the building, the floor level and unit type, occupancy rates in the development, and whether the condo corporation is in good standing. Always disclose your property type upfront so lenders can give you an accurate LTV limit from the start.

If your outstanding loan balance represents more than 80% of your property's current appraised value, you have a few options — none of them instant, but all worth considering depending on your situation.

1. Pay down the principal before applying. Making extra payments on your existing loan to reduce the outstanding balance is the most straightforward path. Even reducing the balance by a few hundred thousand pesos can shift your LTV below the threshold, especially if your property has also appreciated in value.

2. Wait for natural amortization. Every monthly payment you make includes a principal component. Over time, your balance decreases and your LTV improves — even without extra payments. If you are close to the 80% limit, it may only be a matter of months before you cross it.

3. Get a new appraisal. Property values in many parts of the Philippines have risen significantly over the past several years. If your property was last appraised years ago, its current market value may be considerably higher — which would automatically lower your LTV. Banks require a fresh appraisal when you apply for refinancing anyway, and a higher appraised value could make all the difference.

4. Explore Pag-IBIG refinancing. Pag-IBIG has a different LTV framework and may be able to accommodate situations that private banks cannot. See the dedicated question below for more detail.

5. Consider a partial pre-payment plus refinancing. Some borrowers make a lump-sum payment on their existing loan to bring LTV into an acceptable range, then immediately apply to refinance the reduced balance at a lower rate.

Yes, significantly. While 80% is the stated maximum for most Philippine banks, that ceiling is typically reserved for borrowers who present the strongest overall credit profiles. If your credit history includes missed payments, restructured loans, or other negative marks, a bank may approve your refinancing but at a lower LTV — say 60% or 70% — to compensate for the perceived additional risk.

Key factors that influence the effective LTV a lender will offer you include:

• Credit history: Clean payment records on existing loans and credit cards support higher LTV approvals.
• Income stability: Salaried employees with long tenure are generally offered better terms than self-employed borrowers or those with variable income, though this varies by lender.
• Debt-to-income ratio: If your total monthly loan obligations already consume a large portion of your income, lenders may restrict your LTV to ensure the new monthly payment remains manageable.
• Employment sector: Government employees, professionals, and those in stable industries often receive more favorable treatment.

If your credit history is less than perfect, you may still be able to refinance — but managing expectations around LTV is important. You can read more about navigating this scenario in our guide on how to refinance your home loan with bad credit in the Philippines.

Pag-IBIG (HDMF) has its own LTV framework that differs from private banks. For Pag-IBIG's home loan refinancing program, the maximum LTV is generally 90% for qualified borrowers — higher than what most private banks allow. This makes Pag-IBIG an important option for members who have not yet built up 20% equity in their property.

However, there are important caveats. Pag-IBIG refinancing is only available to active Pag-IBIG members in good standing, the outstanding loan must meet certain age and payment history requirements, and the property must comply with Pag-IBIG's collateral standards. The interest rates through Pag-IBIG are set by government policy and can be competitive, but they may not always beat what private banks are offering.

Interestingly, the refinancing journey can also go in the other direction: many Pag-IBIG borrowers choose to move their loan to a private bank to access lower interest rates — particularly as their LTV improves over time. If you're considering this route, our guide on refinancing your Pag-IBIG home loan to a private bank walks through the process in detail, including the LTV requirements you'll need to meet for private lenders.

The appraisal is arguably the most consequential step in the refinancing process for LTV purposes, because the bank's appraised value — not your own estimate — is the denominator in the LTV calculation. If the appraisal comes in lower than you expected, your LTV will be higher than you planned, and this can affect your approval or the rate you're offered.

Here's how the process typically works: After you submit your refinancing application, the bank will commission an independent appraisal of your property. The appraiser visits the property, assesses its condition, location, comparable sales in the area, and other factors, then arrives at a current market value. This figure is then used to calculate your LTV.

To put yourself in the best position for a favorable appraisal:

• Ensure the property is well-maintained and presentable before the appraiser's visit.
• Prepare documents showing any significant improvements or renovations you've made (these can increase appraised value).
• Be aware of recent comparable sales in your neighborhood — if similar properties have sold at strong prices, this supports a higher appraisal.
• If you believe the appraisal significantly undervalues your property, some banks allow you to request a reconsideration or commission a second appraisal, though this is not guaranteed.

Because you cannot choose the appraiser (the bank assigns one), focusing on property presentation and documentation is the most practical way to support a favorable outcome.

Absolutely — and for many Filipino homeowners, the interest rate savings are substantial regardless of where their LTV sits, as long as it falls within the approved range. The key driver of your savings is the difference between your current interest rate and the new rate you can secure, applied over the remaining term of your loan.

Consider this example: You have an outstanding balance of 3,200,000 on a home loan currently priced at 8.5% per annum, with 18 years remaining. Your property is appraised at 4,000,000, giving you an LTV of 80% — right at the limit. If you refinance at 5.99% p.a. (Nook's current best available rate), your monthly payment drops from approximately 28,300 to approximately 23,100 — a saving of around 5,200 per month, or more than 62,000 per year. Over the life of the loan, the total interest saving runs into the millions of pesos.

Even if a lender applies a slightly higher rate at 80% LTV compared to what they'd offer at 60% LTV, the savings versus staying on your current rate are typically far larger. The most important step is simply to find out whether you qualify — and that's exactly what Nook helps you do, for free. We match you with the lenders most likely to approve your application at your specific LTV, so you're not wasting time applying to banks that aren't the right fit.