An Overview of Home Loan Options in the Philippines for OFWs

To help you make an informed decision, here’s an overview of your alternatives for home loans with their general requirements and key features. Specific terms and conditions may apply, so it’s best to contact the respective lending institutions for additional information.

1. Pag-IBIG Overseas Program (POP)

The Pag-IBIG Overseas Program (POP) offers several key features that make it attractive. Firstly, it does not involve withholding tax, simplifying the loan process and reducing the financial burden (1).

This program provides a substantial maximum loan amount of ₱6 million, affording you the flexibility and capacity to finance various home purchase needs. It also extends a maximum loan term or payment period of 30 years.

One of the key features of the POP is portability. You can retain the loan without refinancing when moving to another property, offering ease in property transfer and reducing administrative hurdles.

To avail of the Pag-IBIG Overseas Program (POP), you should be an active member of Pag-IBIG Fund.

Additionally, you must have at least 12 monthly contributions. Otherwise, you must pay your contributions in a lump sum.

Another condition is you should have no pending or existing Pag-IBIG loans. Any prior loans should have clearance from Pag-IBIG before you can apply for a new one under the POP.

Last, it's crucial not to have a Pag-IBIG housing account that was foreclosed, canceled, brought back due to default, or repossessed. Maintaining a clean housing account history is essential for eligibility.

2. SSS Direct Housing Loan

To qualify for this program, you must be a certified OFW and a voluntary Social Security System (SSS) member.

You should have made at least 36 months of contributions and maintained 24 continuous contributions before your loan application. The age limit is not more than 60 years old at the time of application to ensure you can repay the loan before you retire.

This loan program is primarily for first-time applicants since final SSS benefits like retirement, death, or total disability will forfeit your eligibility.

3. RCBC Home Loan

You must possess a mobile number and a residence or office landline when applying for this loan. Your contact details are crucial for communication purposes. You must also prove that you have been employed abroad for at least two years to demonstrate a stable job.

RCBC Home Loan offers flexibility, starting with a minimum loan amount of ₱300,000. You can also benefit from fixing options of up to 20 years, allowing you to lock in interest rates for extended periods and granting you a reasonable timeframe for repayment.

4. Security Bank Home Loan

Security Bank Home Loan aims to simplify and expedite the loan approval process within 10 banking days upon submission of documents.

The loan program offers a minimum loan amount of ₱1,000,000, making it suitable for substantial property investments. You can benefit from competitive interest rates, with a fixed rate of 7% for the first year.

You must provide an Authorization Letter for Property Collateral Verification and Tax Mapping, which the bank will use for property assessment. You and your co-borrower must also earn a combined monthly income of ₱50,000 and submit a Mortgage Redemption Insurance (MRI) Application Form to protect the bank’s interest.

5. UnionBank Home Loan

UnionBank allows a minimum loan amount of ₱500,000. The program also extends a generous maximum loan term of 20 years and a competitive interest rate of 6% (2).

One essential requirement for this home loan is the presentation of a passport with entry and exit stamps, serving as proof of overseas employment.

6. PNB Home Loan

You must purchase properties from accredited developers to qualify for PNB's funding. The bank’s website shows a complete list of partners.

The minimum loan amount varies based on the property location. For lots within and outside Metro Manila, the minimum loan amount is ₱500,000. For houses and lots, condos, and townhouses, it's ₱750,000 within Metro Manila, and ₱500,000 outside Metro Manila.

PNB charges an appraisal fee of ₱3,500 to cover the cost of property evaluation. You should also present proof of inward remittance to demonstrate a stable source of funds and prove your capacity to meet repayment obligations.

Unlike other banks, the loan term for PNB Home Loan is up to 25 years.

7. BDO Kabayan Home Loan

BDO requires you to show evidence of continuous employment for at least two years. Your minimum gross monthly income should be ₱50,000 or its equivalent in foreign currencies to indicate your loan repayment capacity.

You must submit a photocopy of the title, the tax declaration, and a lot plan with a vicinity map to facilitate property verification.

You should also factor in the appraisal fees, costing ₱5,000 if the collateral is 30 km from a BDO branch and ₱5,500 outside that radius. The maximum payment period is set at 20 years.

8. China Bank HomePlus Loan

You must be at least 24 but not over 65 years old at loan maturity. The bank also requires a designated Attorney-in-Fact (AIF) for loan administration.

The interest rate is 5.5%, and the minimum loan amount is ₱500,000. Maximum loan terms depend on the property type: 25 years for houses and lots, 15 years for vacant lots, and 10 years for condo units.

9. BPI OFW Home Loan

For this type of loan, BPI requires proof of bank remittance and an authorization letter to verify your income. If you have an AIF or loan administrator, you need to provide their information, such as their full name, contact details, address, and government IDs.

You can avail of the minimum home loan amount of ₱400,000, while the interest rate starts at 6.25%.

Securing Homeownership for OFWs

Home loans can address the unique needs of OFWs like yourself, including home ownership, long-term financial security, etc. To get a suitable deal, compare several lenders for their eligibility criteria and requirements.

Ready to own your dream home? Visit OnePropertee, apply for free home loan assistance today, and secure your dream property.

Sources

1. “Ofw Pag-Ibig Overseas Program: Step-by-Step Guide to Becoming a Member.” The Pinoy OFW, October 7, 2020. https://thepinoyofw.com/pag-ibig-overseas-program/.

2. “Union Bank Housing Loan.” iMoney.ph. Accessed October 16, 2023. https://www.imoney.ph/housing-loan/union-bank.