Use the calculator below to find your best loan and apply for free!
(Margin of Finance - 80%)
(Margin of Finance - 80%)
(Margin of Finance - 70%)
(Margin of Finance - 80%)
(Margin of Finance - 80%)
(Margin of Finance - 90%)
(Margin of Finance - 80%)
(Margin of Finance - 80%)
(Margin of Finance - 80%)
(Margin of Finance - 80%)
(Margin of Finance - 80%)
(Margin of Finance - 80%)
Buying a house is one of the biggest purchases you’ll ever make. To help you make the best housing loan decision, we've compiled a short guide to explain what you need to know before you apply for a mortgage.
To put it simply, a housing loan is a loan used to purchase property. housing loans are also commonly referred to as 'mortgages'. In the Philippines, housing loans are available from banks, developers, or the housing Development Mutual Fund, better known as Pag-IBIG. To paint a clearer picture, we suggest that you check out our comprehensive article on the Key Differences Between a Commercial Bank, SSS, and Pag-IBIG Housing Loans. This will provide you with a better understanding on the advantages and requirements of these housing loan options. If you already have an existing housing loan and want to change to another product or lender to get better rates, that’s called 'refinancing'.
When you take out a housing loan in the Philippines, you enter into an agreement with the lender (usually a bank) and promise to repay your loan over an agreed length of time (also known as the 'loan tenure' or ‘loan tenor’).
Filipinos have two options for housing loans: public, in the form of PAG-IBIG, and private, in the form of banks. Major banks that provide housing loans include BPI, Metrobank, and Security Bank. And you can compare all their housing loan rates on this site.
Interest rates for housing loans in the Philippines differ from bank to bank. For example, for a 20-year period, the interest of one housing Loan is 5.50% 1 year fixed term, while for Security Bank it’s 5.25%.
In a typical Philippine mortgage, you make monthly payments for the loan tenure until you've fully repaid both the principal of the loan and the interest. During the early years of the loan, the majority of your monthly payments will be used to repay interest, however, as time passes, a larger proportion of your payments will go into paying down the principal.
Because your interest is calculated based on what you owe on your loan each month, by paying a little bit extra each month, the interest in subsequent months will be lower.
iMoney has created a housing loan calculator that makes calculating the monthly repayments and comparing rates across all banks easy for you. To use the mortgage calculator, just scroll up to the top of this page, type in the property price that you would like to borrow, and for how long are you willing to pay for it. It will do all the calculations and will present you with the best amortization and mortgage rates for you.