Buying a house is a long-term commitment. Are you financially prepared to buy one, and is it the right time to buy?
These are just some of the important questions you need to ask yourself before speaking to a home loan officer or filling out that loan application form.
Aside from that, you also need to read the fine print. Understand the terms and conditions so you will not be shocked when it’s time to pay for miscellaneous fees and charges, which include insurance premiums, handling fees, notary fees, and more.
Below is a preview of their fixing periods and interest rates for home acquisitions. Note that these are indicative rates and are subject to final review and assessment upon application.
Compare BPI, BDO, and Metrobank home loan fixed rates – Which one is for you?
These banks offer an interest fixing period or fixed rate for their home loans. Choosing a term from 1 year up to 20 years will protect you from fluctuating interest rates in the market.
For example, if you choose a home acquisition package from BPI with a 5-year fixing period, your home loan interest rate will be at a fixed 6.88% for five years despite the upward movement of interest rates in the market. Once your fixing period expires, interest rates will be subject for review and changes.
BPI offers a 10, 15, and 20-year fixing periods for home acquisition, home construction, and renovation.
- 10-year fixing period – 9.50%
- 15-year fixing period – 10.50%
- 20-year fixing period – 12.00%
BDO and Metrobank offer up to 5-year fixing periods only.
In summary, based on the interest rates above, BPI and Metrobank offer lower rates for a home acquisition loan compared to BDO that offers 8.00% for a 5-year fixing period.
Minimum and maximum loanable amounts of BPI, BDO, and Metrobank Home Loans
How much can you borrow from each bank? Take a look at the table below to find out depending on the type of property.
|Minimum loanable amount||
||** visit the nearest branch for info|
|Maximum loanable amount||
If you’re acquiring a brand new property from Metrobank-accredited developers, such as Avida Land, Ayala Land, DMCI Project Developers Inc., Federal Land, Filinvest Land, Megaworld Corp., Rockwell, and Greenfield Development, you can avail the maximum loanable amount of up to 90% of the property value. But this is still subject to bank approval and your eligibility as a borrower.
How long can you pay for a BPI, BDO, and Metrobank Home Loan?
Refer to this table for the type of property you wish to avail of and the maximum payment for the property you wish to purchase.
|Home Loan Purpose||BPI||BDO||Metrobank|
|House and lot purchase||25 years||20 years||25 years|
|Townhouse purchase||10 years||20 years||25 years|
|Residential condo purchase||10 years||15 years||25 years|
|Vacant lot purchase||10 years||10 years||10 years|
For townhouse and residential condo purchases, Metrobank offers the longest payment term for up to 25 years.
For other loan purposes such as reimbursement, renovation, or refinancing, you can visit the nearest branch of BPI, BDO, and Metrobank for the payment terms.
How to qualify for a BPI, BDO, or Metrobank Home Loan?
Most banks have a set of qualifications and eligibility requirements for home loan applications.
These include having a stable income and submitting the required documents to validate your current financial status.
For foreigners purchasing a property, banks also have their limitations and sets of requirements for submission.
Whether you are locally employed, self-employed, or working as an Overseas Filipino Worker, take a look at the following:
|Min Gross Income||BPI||BDO||Metrobank|
|Min total household income (employed and self-employed)
For OFWs, minimum gross income equivalent in USD for BDO
BPI and Metrobank have the same minimum income requirement. But even if you meet the income requirements, you still need to consider the other qualifications and complete the documents for immediate processing.
How long does a home loan application take for each bank?
For as long as you qualify for a home loan and submit complete documentary requirements, you can get approved within five (5) working days. In some cases, it can take as long as one to two weeks.
Miscellaneous fees and charges of BPI, BDO, and Metrobank Home Loan
The appraisal fees and miscellaneous fees for each bank are as follow:
|Handling fee||** Visit the branch for more info**||P3,000||P3,500|
|Notarial fee||** Visit the branch for more info**||P100 (for Metro Manila accounts only; for outside Metro Manila, depends on fee of Notary Public in the area)||P200 / document|
|Registration Fee||** Visit the branch for more info**||Varies||Based on RD schedule/table|
|MRI (Mortgage Redemption Insurance)||Varies||Varies||Varies|
|Credit Life Insurance (CLI) Premium||Varies||
So, which home loan is best for you?
If you’re after the interest rates per annum based on the fixing period, BPI and Metrobank have competitive interest rates compared to BDO. But when it comes to how much you can borrow, BDO is more lenient as you can borrow for as low as P300,000 if it’s to purchase a vacant lot.
If you’re considering payment terms, Metrobank offers the longest payment term of up to 25 years, whether it’s for a house and lot, townhouse, or residential condo unit purchase.
But keep in mind that longer payment terms will affect interest rates and monthly amortization.
All of these interest rates mentioned above are indicative rates and are subject to change. We recommend that you make a visit to your nearest preferred branch for an actual computation, including insurance premiums and miscellaneous fees.
Which home loan do you think suits your financial needs for your dream home? Let us know in the comments!