Ask overseas Filipino workers (OFWs) why they choose to make a living abroad, and among the common answers is that it’s in the hopes of building a better life for their loved ones back home. Not-so-coincidentally, ‘building’ a better life for the family in the Philippines also almost always includes investing in residential real estate.
Despite making a comparatively better living abroad than locally, however, not everyone can buy a home for sale via a lump sum payment–including OFWs. So, like local homebuyers, OFWs also turn to home loans for their property acquisition.
Now, while the general thinking is that it is much more difficult for Filipinos overseas to find (and even qualify for) local home loans, there are some notable financing options that OFWs can look into and apply, and get successfully approved for with the help of an Ohmyhome agent, even when they aren’t in the Philippines.
SSS Direct Housing Loan
If you happen to be a Social Security System member who has made at least 36 contributions (or paid consecutively for the past 2 years/24 months), you may avail of the SSS’s Direct Housing Loan Facility for Overseas Filipino Workers.
Designed to help “provide socialized and low-cost housing to overseas Filipino contract workers”, the SSS Direct Housing Loan has a maximum loanable amount of Php2 million that is payable in multiples of five (5) years up to a maximum of fifteen (15) years.
SSS Direct Housing Loan
| Loan Amounts | Loan Terms and Interest Rate/s | Eligibility |
| Socialized Housing Loan: Up to Php450,000.00 Low-cost Housing Loan: (1) Over P450,000 up to P1,000,000 (2) Over P1,000,000 up to 1,500,000 (3) Over P1,500,000 up to P2,000,000 *Actual need of the borrower based on the contract to sell/scope of work and bill of materials evaluated by the SSS | Socialized Housing Loan: 8% p.a. Low-cost Housing Loan: (1) 9% p.a. (2) 10% p.a. (3) 11% p.a. Payable in multiples of five (5) years up to a maximum of fifteen (15) years. *Term/s are subject to the following: – The principal borrower’s age shall not exceed 65 years old at the time of loan maturity; and – The loan term shall not exceed the economic life of the building as determined by the SSS appraiser. | – Borrower is certified Overseas Filipino Worker; – A voluntary OFW member of SSS; – Has made at least 36 months contribution and 24 continuous contributions in the period before application – Is not more than 60 years old at the time of application and must be insurable. *Members age 60 years at the time of application will have a maximum loan term of 5 years* – Have not been previously granted an SSS housing loan – Have not been granted final SSS benefits – Borrower’s spouse must be updated in the payment of their other SSS loan(s) if any. |
Pag-IBIG Overseas Program (POP)
Under the Pag-IBIG Overseas Program (POP), you can maintain your membership with the Home Development Mutual Fund (HDMF/Pag-IBIG) even when you are overseas. By making a minimum of 24-monthly Pag-IBIG contributions, you are qualified for the Pag-IBIG loans intended for buying property in the Philippines.
How much you can borrow from Pag-IBIG will be subject to other qualifiers, such as your actual need and your capacity to pay, but at most you may be able to borrow as much as Php6 million for your property purchase.
Pag-IBIG Overseas Program (POP)
| Loan Amounts | Loan Terms and Interest Rate/s | Eligibility |
| Maximum of Php6 million(can be taken through multiple loans and not just 1 loan worth Php6 million). The loan amount is subject to other qualifiers like the member’s actual need and capacity to pay, and The loan amount must not result in a monthly amortization that is 35% of the borrower’s total gross salary. | The following are the rates for Pag-IBIG Housing Loans from January to June 2021 with their respective re-pricing periods: 1-Yr Fixing 5.750% 3-Yr Fixing 6.250% 5-Yr Fixing 6.500% 10-Yr Fixing 7.250% 15-Yr Fixing 7.875% 20-Yr Fixing 8.500% 25-Yr Fixing 9.125% 30-Yr Fixing 9.875% | – Be an active Pag-IBIG member – Made at least 24 months’ worth of Pag-IBIG contributions (can be paid in a lump sum) – Be no more than 65 years old during the time of application, and no more than 70 years old during loan maturity. – Have no pending or existing page-IBIG loans |
Home Loans from Private Banks in the Philippines
While home loans from the SSS and HDMF are generally among the easier ones to apply for, these are generally aimed at low-cost housing. In addition, some Filipinos who have long been overseas may have discontinued making SSS or Pag-IBIG contributions, which in effect leads to ineligibility for those housing loans.
If you aim to acquire a pricier home or have not kept up with SSS or Pag-IBIG payments due to being overseas, a home loan from a private bank is your best option. However, with so many local banks offering a home loan, finding the right one to apply for is challenging.
Being based in another country doesn’t help matters, but unlike the more tedious aspects of buying a home while overseas (property viewing, processing government documents), asking yourself the following may help narrow down your choices and make things a little easier:
How much do I need, and how much can the bank offer?
Just like how banks vary, so do the terms of the housing loans they offer. Fortunately, most of this information is available on most banks’ websites, with some of them even featuring loan calculators that make it a little easier to make estimates of how much you can borrow (and subsequently pay) and compare between the options available.
As of now, the maximum home loan commonly offered by most banks is 80-percent of the appraised value of the property being bought, but there are also variances in this number between banks.
The Bank of the Philippine Islands, for example, offers as much as 80-percent of the appraised value of a house and lot, but only if this were not to exceed Php5 million and provided the buyer is employed and the purpose of the purchase is to occupy the home. Similarly, Security Bank Corporation (SBC) offers a maximum loan amount of 80-percent of the appraised value of a property, however, this is not limited to houses and lots worth Php5 million, and can be condos for sale or vacant lots.
The amount you get approved for will also depend on how much you need, which in turn is determined by exactly what you use the loan for. Apart from buying a house and lot, home loans can, after all, also be used to buy condos or vacant lots, or be used to finance the renovation of a home or to build one from the ground up. Most banks have loan products/loan amounts designated for each.
How much time do I have to make payments?
Your current and projected income is an important consideration when it comes to deciding on a home loan, as the amount you borrow and the payment terms you agree to will affect your financial future–a future that may or may not be entirely overseas.
The payment terms you’ll mostly come across when inquiring about home financing are 20 or 25 years, which are the common maximum loan terms offered by most banks. Granted, some banks only offer a term of 15 years to pay, while some go as far as 30 years.
Loan terms tend to vary depending on the bank, and the type of property being bought or built. So it’s best to look into as many banks as you can that offer home loans for OFWs, and take into consideration your ability to make payments and/or time making a living overseas.
HOUSING LOAN TERMS AND AMOUNTS
| BANK | Maximum loan terms | Minimum loan amount | Maximum loan amount |
| Asia United Bank (AUB) | 20 years | P1,000,000 | Maximum loan amount of up to 80% of the appraised value |
| Banco de Oro (BDO) | 10 years (Vacant Lot 15 years (Condo Unit) 20 years (House & Lot, Townhouse, Construction) | P300,000 P500,000 P500,000 | 70% of the appraised value 80% of the appraised value 80% of the appraised value |
| Bank of the Philippine Islands (BPI) | 10 years (Vacant Lot, Residential Condominium) 25 years (House and Lot) | P400,000 | 60% of the appraised value of a vacant lot or residential condominium 70% of the appraised value of house and lot or 80% of the appraised value of house & lot not to exceed P5M (provided applicant is employed and purpose is for owner occupancy) |
| China Bank | 10 years (Condominium Unit) 15 years (Vacant Lots) 25 years (House and Lots) | ||
| China Bank Savings | 15 years (Condominium or Vacant Residential Lot) 25 years (House and Lot, House Construction and Renovation, or Purchase of a Townhouse Unit) | ||
| China Trust Bank | 20 years | P500,000 | P25 Million |
| EastWest Bank | 30 years | ||
| HSBC Philippines | 20 years | P700,000 | P30 Million (Home Equity) P50 Million (Home Loan) |
| Land Bank of the Philippines | *Bahay para sa Bagong Bayani (3B)* 20 years: for OFW with co-borrower 15 years: for OFW without co-borrower | Lowest of the paying capacity of the OFW or loan value of collateral with a loan value of 80% provided that: – Financing will be for the principal residence or dwelling of the borrower OFW; and – The title should be under the name of the OFW | |
| Maybank | 1.) 10 years (Home Equity) 2.) 15 years (Loan Refinancing) 3.) Borrower’s age plus the term of the loan should not be more than 65 years old once the loan matures (Home Acquisition) | 1.) P500,000 2.) P800,000 3.) P800,000 | 1.) 60% of your home’s appraised value or borrow up to P5 million (whichever is lower) 2.) 70% of the appraised value of your house and lot, townhouse, or condominium (up to 60% for a vacant residential lot) 3.) 80% of the appraised value of your house and lot, a condo, or a townhouse (60% for vacant lots) |
| MetroBank | 25 years | P500,000 | |
| Philippine Bank of Communications (PBCom) | 20 years | P500,000 | P20 Million |
| Philippine National Bank (PNB) | 10 years (Vacant Lot / Home Improvement) 20 years (House & Lot, Townhouse, Condominium Unit & House Construction) | Within Metro Manila: P750,000 (house & lot/ townhouse/ condominium), P500,000 (vacant lot) Outside Metro Manila: P500,000 (house & lot/ townhouse/ condominium), P200,000 (vacant lot) | The maximum loanable amount shall be the lowest of: Actual Need, Paying capacity (up to 30% of gross monthly income can be used as amortization), or Up to 80% of the appraised value of the property for house & lot, townhouse & condominium, or Up to 60% of the appraised value of the property or lot. |
| Rizal Commercial Banking Corp. (RCBC) | 20 years – Employed borrowers must be at most 65 years old upon loan maturity. – Self-employed borrowers must be at most 70 years old upon loan maturity. | P300,000 (Home Renovation) P1,000,000 (House and Lot, Vacant Lot, Home Refinancing) | Up to 80% of the appraised value of house and lot, townhouse, or condominium unit. Up to 70% of appraised value if vacant lot only. |
| Robinsons Bank | 20 years (Locally Employed) 15 years (OFW and Self-employed) | Up to 90% of the total contract price (Accredited Developers) Up to 80% of the appraised value (Non-Accredited Developers) | |
| Security Bank | 20 years | P1 Million | Up to 80% of the property’s appraised value |
| Sterling Bank of Asia | 25 years, with borrower’s age upon maturity not exceeding 65 | P500,000.00 | P10 Million or up to 80% of the property’s appraised value |
| Union Bank | 20 years | P500,000 | |
| United Coconut Planters Bank | 20 years (Construction and Acquisition of House & Lot, Townhouses and Condominium Units) 10 years (Refinancing, Multi-purpose Loans, Vacant Lots) | P500,000 | Maximum of 70% of the appraised value for houses and lots, townhouses, and condominium units Maximum of 60% of the appraised value for vacant lots Maximum of 80% of the contract price for accredited developers |
| Veterans Bank | 20 years | P375,000 | 80% of the appraised value of the collateral, 60% on vacant lots |
How much interest will I incur for my loan?
While the home loans of most banks more or less cover 80-percent of appraised property values and can be paid within as much as 20- to 25-year terms, it is in the interest rates which loans differ the most. With that said, it’s not only having the lowest interest rate that makes a loan ideal but also having rates that are protected from the fluctuations in the market.
This means being able to select a period of between one and 15 years (depending on what the bank offers) where your interest remains fixed regardless of the movements in the market, thus making it easy for you to project the loan payments you need to make in the next several months. Each particular period has a specific fixed interest or bookings rate, which is only re-reviewed upon the period’s expiration.
INTEREST RATES
| BANK | Loan Type | 1 year | 2 years | 3 years | 4 years | 5 years | 10 years | 15 years | 20 years | 25 years | 30 years |
| Asia United Bank (AUB) | 6.00% | 6.50% | 7.00% | ||||||||
| Banco de Oro (BDO) | 6.75% | 6.75% | 6.75% | 7.25% | 7.25% | ||||||
| Bank of the Philippine Islands (BPI) | 6.25% | 6.25% | 6.75% | 7.25% | 7.25% | 9.50% | 10.5% | 12% | |||
| EastWest Bank | 5.75% | 6.75% | 6.75% | 7.25% | 7.25% | 7.38% | 8.25% | 9.75% | 9.75% | 9.75% | |
| Maybank | Home Equity Loan Refinancing Home Acquisition | 8.75% 6.75% 6.75% | 9.50% 7.75% 7.75% | 10.75% 8.75% 7.50% | |||||||
| Security Bank | Regular Home Loan Home Equity Loan | 6.25% 7.25% | 6.25% 7.25% | 6.25% 7.25% | 6.75% 7.75% | 7.75% 8.75% |
**For interest rates of banks not listed, the bank must be contacted directly.
For a more comprehensive look at home loans offered by private banks in the Philippines, click here.
Have additional questions regarding financing or finding properties to buy in the Philippines? Visit the Ohmyhome Buying from Overseas page for more information.
Connect with an Ohmyhome agent, to receive expert assistance in finding the right condo or house for sale or applying and getting approved for a home loan.
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Ohmyhome expanded into the Philippines so that Filipino home seekers can have a real estate partner that they can trust to have their best interests at heart and can be relied upon to provide exceptional services throughout the entire property journey.
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