Highlights
- The best bank for a home equity loan depends on your needs; PAG-IBIG offers low rates, while Security Bank and Metrobank provide higher loan limits with flexible terms.
- A PAG-IBIG home equity loan, through its Multi-Purpose Loan program, allows members to borrow up to 80% of their property’s value with competitive interest rates and flexible terms.
- The major disadvantage of a home equity loan is the risk of losing your home if you default on payments, as the property is used as collateral.
Home equity loans offer a practical way for homeowners to leverage their property’s value to meet financial needs, such as education, medical expenses, or business funding.
In the Philippines, this loan type is gaining traction, especially among middle-income households.
This guide highlights the top home equity loan options in the Philippines, focusing on features, interest rates, and repayment terms.
From government-backed programs to private banking solutions, this article aims to help you choose the loan that fits your needs.
PAG-IBIG Home Equity Loan
PAG-IBIG provides a Multi-Purpose Loan program designed to assist homeowners in utilizing their property’s value for various personal and financial needs.
This government-backed initiative ensures competitive rates and member-centric services.
Borrowers can access up to 80% of their property’s appraised value with interest rates starting at 5.5% annually, among the lowest in the market. The loan repayment term extends up to 30 years, making it a favorable choice for those looking for flexible payment options.
This makes PAG-IBIG loans particularly appealing for salaried employees and small business owners.
Additionally, PAG-IBIG offers an easy application process for its members. This includes fewer documentary requirements and faster processing times, providing added convenience to eligible borrowers. Its affordability and accessibility are ideal for individuals seeking lower monthly amortization.
Security Bank’s Home Equity Loan
Security Bank’s home equity loan is a straightforward financial product tailored for property owners who need substantial funds for various purposes. The bank’s emphasis on flexibility and service quality sets it apart.
Homeowners can borrow between PHP 1 million and PHP 10 million, depending on their property’s appraised value. The fixed interest rate starts at 6.25% per annum, ensuring predictable monthly payments.
Borrowers can choose repayment terms of up to 15 years, providing ample time to manage finances effectively.
Security Bank’s online application process and personalized customer support enhance the experience. The institution’s trusted reputation makes it a go-to choice for those prioritizing reliability and ease of use when applying for large loans.
BPI Home Equity Loan
Bank of the Philippine Islands offers home equity loans that cater to diverse financial needs, from funding education to expanding a business. With a customer-focused approach, BPI ensures a seamless borrowing experience.
This loan allows homeowners to access up to 70% of their property’s appraised value, with competitive interest rates starting at 6.75% per annum.
The repayment terms range from 1 to 10 years, making it suitable for short- to medium-term financial plans.
The bank’s flexible terms appeal to borrowers who value a balance between affordability and efficiency.
BPI’s robust network of branches and digital tools simplifies the loan application process.
The bank’s long-standing reputation adds credibility, making it an attractive option for borrowers seeking stability and trustworthiness.
Maybank’s Home Equity Loan
Maybank is a trusted regional player offering home equity loans with competitive rates and personalized service. It focuses on helping borrowers achieve their financial goals while providing flexible solutions.
Maybank’s home equity loans allow access to up to 80% of the appraised property value, with interest rates starting at 5.88% annually.
Borrowers can opt for repayment terms of up to 15 years, ensuring manageable monthly payments tailored to their needs. These features make it suitable for homeowners seeking longer repayment periods and lower monthly obligations.
The bank also prides itself on its quick approval times and minimal paperwork requirements.
This focus on customer convenience, combined with attractive rates, makes Maybank an excellent choice for individuals looking for efficient loan processing.
CTBC Bank Home Equity Loan
CTBC Bank is known for offering flexible home equity loans designed to cater to a broad range of financial needs. Its approach is centered on accessibility and ease of use.
The bank provides loans starting at PHP 500,000, making it ideal for homeowners requiring smaller financing options.
Interest rates start at 6.75% per annum, and repayment terms can extend up to 20 years, allowing borrowers to spread payments over a longer period.
CTBC also emphasizes customer service, with dedicated representatives assisting borrowers throughout the process.
This personalized approach, combined with the bank’s flexible offerings, ensures a hassle-free experience for clients.
Metrobank’s Home Equity Loan
Metrobank is a top-tier institution offering home equity loans tailored for personal or business needs. Its competitive rates and established reputation make it a preferred choice for many.
Metrobank allows homeowners to borrow up to PHP 10 million or 80% of their property’s appraised value, with interest rates starting at 6.5% per annum.
Repayment terms of up to 15 years give borrowers the flexibility to manage their finances effectively.
The bank’s comprehensive online and in-branch support ensures a smooth application process. Metrobank’s commitment to service excellence makes it a trusted partner for individuals and businesses looking to maximize their property’s value.
Home Equity Loan in the Philippines
| Bank | Max Loan Amount | Interest Rate | Repayment Terms |
| PAG-IBIG | 80% of appraised value | From 5.5% per annum | Up to 30 years |
| Security Bank | PHP 10M | From 6.25% per annum | Up to 15 years |
| BPI | 70% of appraised value | From 6.75% per annum | Up to 10 years |
| Maybank | 80% of appraised value | From 5.88% per annum | Up to 15 years |
| CTBC Bank | PHP 500K+ | From 6.75% per annum | Up to 20 years |
| Metrobank | PHP 10M | From 6.5% per annum | Up to 15 years |
Conclusion
Home equity loans in the Philippines offer valuable solutions for homeowners seeking additional funds. From PAG-IBIG’s low rates to Metrobank’s high loanable amounts, each option caters to specific financial needs.
Understanding the details of these loans—such as interest rates, terms, and borrowing limits—ensures a better match for your financial plans.
AP Residences is committed to helping Filipino homeowners navigate their financial journeys. For expert guidance, reach out to us today to explore your options.
