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How to Get a Housing Loan




A housing loan refers to a type of loan that allows individuals to finance the purchase or construction of a house. It is typically offered by banks, government agencies, and other financial institutions. Housing loans are popular in the Philippines due to the growing demand for housing, as well as the high cost of real estate in many cities. The loan allows borrowers to spread the cost of their housing purchase over a longer period of time, making it easier for them to achieve their dream of owning a home. The terms and conditions of housing loans in the Philippines vary by lender, so it's important to compare different options and find the one that best fits your needs and budget.


Housing Loan Common Requirements


Here are some common requirements for getting a housing loan in the Philippines:

  1. Age: Most lenders require borrowers to be at least 21 years old, but the age limit may vary depending on the lender.

  2. Citizenship: Borrowers must be Philippine citizens or permanent residents.

  3. Income: Most lenders require borrowers to have a stable source of income, such as a job or business, and to earn a minimum amount to qualify for a loan. The minimum income requirement varies by lender, but it is usually between PHP 20,000 to PHP 30,000 per month.

  4. Employment: Borrowers must be either employed or self-employed. Some lenders may require a certain length of employment or self-employment to be eligible for a loan.

  5. Credit history: Lenders will typically check the borrower's credit history to assess their creditworthiness. A good credit score can help increase the chances of loan approval, while a poor credit score may result in loan denial.

  6. Down payment: Borrowers may be required to make a down payment, which is typically a percentage of the total loan amount. The down payment can range from 10% to 20% of the loan amount.

  7. Collateral: Some lenders may require borrowers to provide collateral, such as a property, to secure the loan.

Requirements may vary by lender, so it's recommended to check with the specific lender for their specific requirements.


Types of Housing Loans in the Philippines

Pag-IBIG Fund Housing Loan

The Pag-IBIG Fund Housing Loan is a type of housing loan offered by the Home Development Mutual Fund (HDMF), also known as the Pag-IBIG Fund, in the Philippines. The Pag-IBIG Fund Housing Loan is designed to help Filipino workers own a home through a multi-purpose, affordable, and low-interest housing loan. Some of the key features of the Pag-IBIG Fund Housing Loan include:

  1. Eligibility: To be eligible for a Pag-IBIG Fund Housing Loan, borrowers must be active Pag-IBIG Fund members with at least 24 monthly contributions.

  2. Loan amount: The loan amount offered by the Pag-IBIG Fund Housing Loan ranges from PHP 300,000 to PHP 6 million, depending on the borrower's income and capacity to pay.

  3. Repayment terms: The loan repayment terms range from 1 to 30 years, with a flexible and affordable monthly amortization.

  4. Interest rate: The interest rate for a Pag-IBIG Fund Housing Loan is based on the prevailing market rate and is currently set at 6.5% per annum.

  5. Collateral: No collateral is required for a Pag-IBIG Fund Housing Loan.

  6. Other benefits: In addition to the low-interest rate, Pag-IBIG Fund Housing Loan borrowers can also enjoy other benefits, such as a streamlined application process and the option to pay their loan through their Pag-IBIG Fund savings.

The Pag-IBIG Fund Housing Loan is a convenient and accessible option for many Filipino workers who want to own a home.


Social Security System (SSS) Housing Loan

The Social Security System (SSS) Housing Loan is a type of housing loan offered by the Social Security System in the Philippines. The SSS Housing Loan is designed to help SSS members finance the purchase or construction of a home, as well as the improvement or repair of an existing home. Some of the key features of the SSS Housing Loan include:

  1. Eligibility: To be eligible for an SSS Housing Loan, borrowers must be active SSS members with at least 36 monthly contributions.

  2. Loan amount: The loan amount offered by the SSS Housing Loan ranges from PHP 300,000 to PHP 2 million, depending on the borrower's income and capacity to pay.

  3. Repayment terms: The loan repayment terms range from 1 to 25 years, with a flexible and affordable monthly amortization.

  4. Interest rate: The interest rate for an SSS Housing Loan is based on the prevailing market rate and is currently set at 6.5% per annum.

  5. Collateral: Borrowers are required to provide collateral for an SSS Housing Loan, such as a property, to secure the loan.

  6. Other benefits: In addition to the low-interest rate, SSS Housing Loan borrowers can also enjoy other benefits, such as a streamlined application process and the option to pay their loan through their SSS savings.

The SSS Housing Loan is a convenient and accessible option for many SSS members who want to own or improve a home. However, it is important to note that the SSS Housing Loan has strict eligibility requirements and requires borrowers to provide collateral, which may not be suitable for everyone.


Bank Housing Loan

A Bank Housing Loan is a type of housing loan offered by banks in the Philippines. Bank Housing Loans are designed to help individuals finance the purchase or construction of a home, as well as the improvement or repair of an existing home. Some of the key features of Bank Housing Loans include:

  1. Eligibility: To be eligible for a Bank Housing Loan, borrowers must have a stable source of income and a good credit history. The eligibility requirements may vary by bank, so it's important to check with the specific bank for their specific requirements.

  2. Loan amount: The loan amount offered by Bank Housing Loans can range from PHP 500,000 to PHP 10 million or more, depending on the borrower's income and capacity to pay.

  3. Repayment terms: The loan repayment terms for Bank Housing Loans can range from 1 to 30 years, with a flexible and affordable monthly amortization.

  4. Interest rate: The interest rate for a Bank Housing Loan is based on the prevailing market rate and can range from 6% to 12% per annum, depending on the lender and the borrower's creditworthiness.

  5. Collateral: Some banks may require borrowers to provide collateral, such as a property, to secure the loan. However, there are also unsecured housing loans available from some banks that do not require collateral.

  6. Other benefits: Depending on the bank, borrowers can enjoy other benefits, such as a streamlined application process, flexible repayment terms, and the option to pay their loan through automatic debit arrangements.

Bank Housing Loans are a convenient and accessible option for many individuals who want to own or improve a home. However, it is important to compare the interest rates and repayment terms offered by different banks to ensure that you are getting the best deal possible.


In summary, housing loans in the Philippines are offered by various financial institutions such as the Pag-IBIG Fund, Social Security System (SSS), and banks. These loans are designed to help Filipinos finance the purchase, construction, improvement, or repair of a home. Key features of these loans include the loan amount, repayment terms, interest rate, collateral requirements, and additional benefits. The eligibility requirements, interest rate, and collateral requirements may vary depending on the lender, so it's important to compare the options available and carefully review the terms and conditions before applying for a housing loan.


Bank Loan Calculator


Click on the link below for the housing loan calculator of Union Bank:



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