Buyer's Guide › Chapter 1 of 6

Budget & financing a home in the Philippines

Before you fall in love with a property, get clear on what you can actually afford. Most buyers don't pay cash — they finance the purchase with a housing loan. Your three main options:

• Pag-IBIG Fund housing loan. The go-to for many Filipino buyers, with some of the lowest interest rates and long repayment terms (up to 30 years). You'll need to be an active member with the required contributions. Loanable amounts and rates depend on your income and the loan package.
• Bank home loan. Offered by most major banks, usually with faster processing and higher loanable amounts than Pag-IBIG, but at market interest rates that reset periodically. Great if you have a strong, documented income.
• In-house / developer financing. Arranged directly with the developer, often with easier approval but higher effective rates and shorter terms. Common for pre-selling condo and subdivision projects.

Pag-IBIG Fund housing loan, in detail

Government-backed and the go-to for many Filipino buyers. Indicative figures as of mid-2026 — confirm current rates with Pag-IBIG before you apply:

• Interest rates: about 5.375%–6.375% p.a. for loans of ₱500k–₱2M, and 6.375%–7.0% for ₱2M–₱6M, depending on the pricing period you lock in.
• Maximum term: 30 years · Loan cap: ₱6,000,000.
• To qualify: an active member with at least 24 monthly contributions, not more than 65 years old at application, no Pag-IBIG housing or multi-purpose loan in arrears, plus valid government IDs and proof of income.
• Why buyers pick it: lower rates (especially for low-income earners), the longest terms, and more lenient credit checks than banks.
• Trade-offs: the ₱6M loan cap, and processing can take longer.

Bank home loans, in detail

Offered by every major Philippine bank. Indicative advertised ranges as of mid-2026 — rates reprice periodically, so treat these as a starting point:

• Typical rates: BDO 6.88%–9.5% p.a. · BPI 6.75%–10% · Metrobank 6.5%–9.75% · LandBank 6.0%–8.5%.
• To apply: a duly filled-out application form, valid government-issued IDs, proof of income (ITR, payslips, COE), and collateral documents (TCT, tax declaration).
• Why buyers pick it: lower rates than in-house financing, terms up to 20–25 years, and the bank’s strict appraisal doubles as a sanity check on the price you’re paying.
• Trade-offs: stringent approval and background checks, comprehensive documentation, and approval can take several weeks.

In-house (developer) financing, in detail

Arranged directly with the developer — common for pre-selling condo and subdivision projects:

• Typical terms: reservation fee ₱20,000–₱50,000 · down payment 10%–30% · interest 12%–18% p.a. · terms of 5–15 years.
• To apply: the developer’s application form, valid government-issued IDs, proof of billing, and post-dated checks (PDCs).
• Why buyers pick it: the fastest approval (often within days), minimal documentation (often no ITR needed), and it works for buyers with an unestablished credit history.
• Trade-offs: the highest interest rates of the three, and shorter terms mean higher monthly amortizations.

Typical upfront and ongoing costs to plan for:

• Reservation fee — a small amount (often a few thousand to tens of thousands of pesos) to hold the unit while paperwork is prepared. Ask whether it's refundable and whether it's deducted from the price.
• Down payment — commonly 10–20% of the contract price, sometimes spread over several months for pre-selling projects.
• Monthly amortization — your loan repayment. As a rule of thumb, keep it comfortably within your budget so it doesn't strain the rest of your life.

Frequently asked questions