With so many banks and lending institutions out there, wouldn’t it be nice if you can easily know which one offers the best mortgage interest rates or home loan rates?
Actually, this has been a challenge for me as I am often asked which bank has the cheapest mortgage rates (and whether it is better to get a loan from a bank or Pag-IBIG) and honestly, I couldn’t give a straight answer, and I would either just mention the banks I know, or I would end up guessing. That is, until now!
After much research and effort to compile the latest information available, we finally have our very own mortgage and home loan interest rates comparison chart which aims to compare all available home loan and mortgage rates here in the Philippines (this is a work in progress… more on this later), including Pag-IBIG and other lending institutions (coming soon).
If you want to know where to get the cheapest mortgage rates and lowest home loan rates, just click on the “Lowest Interest Rate” column header below to sort from the lowest to the highest.
Go ahead, try it out. You can also click on the details to enlarge.
Home Loan Interest Rates Comparison Chart (as of February 19, 2014)
Bank / Lending Institution
Lowest Interest Rate
Where to get more info
|Allied Bank||6.0%||Updated as of February 19, 2014|
Source: Allied Bank Website
|Banco De Oro (BDO)||7.75%||Updated as of February 19, 2014|
Source: BDO Website
|BPI||5.5%||Updated as of February 19, 2014|
Source: BPI Website
|EastWest Bank||7.5%||1st year fixing at 7.5%, 30 year tenor, |
for loans starting at P1.5M
|Source: EastWest Bank Flyer|
|HSBC||5.5%||Updated February 19, 2014|
Source: HSBC Website
|Pag-IBIG||4.5%||For more details, please refer|
to the following Pag-IBIG
|Philippine National Bank (PNB)||5.25%||Updated February 19, 2014|
Source: PNB Website
|PSBank||6.0%||Updated February 19, 2014|
Source: PSBank Website
|RCBC Savings Bank||8%||Source: RCBC Savings Bank,|
G/F, Pacific Place Building,
Pearl Drive, Ortigas Center,
Are they the best, those who offer the lowest interest rates?
It depends. If you have played around with the chart above, you will notice that Pag-IBIG has the lowest interest rates for housing loans up to Php400,000, which is just 4.5% per year. However, what if you need a housing loan that’s more than that? Based solely on the interest rates, a number of banks beat Pag-IBIG for loans above Php400K. So it really depends on the loan amount, among other factors.
You need to check the details of what they are offering like fixing terms and corresponding interest rates (see the “Details” column), or just visit their website for more information (see the “Where to get more info” column).
Reminders about the quoted interest rates above
Please take note that the interest rates quoted in the chart above are indicative rates, which means they are subject to change without prior notice, and the actual interest rate will be the prevailing rate during the time of loan availment.
While getting the cheapest mortgage or home loan rates sounds great, there are things you should be aware of. The lowest rates usually come with yearly repricing, while fixed interest rates are often higher, but can help give you peace of mind that you won’t be affected by the next financial crisis. Learn more by reading the following article:
Updated home loan interest rates
Nope, this isn’t a one-time thing as we intend to keep this home loan and mortgage rates chart updated. By the way, interest rates on the chart above are as of March 2013, and the next update should be on June 2013.
For now, these include banks and lending institutions that either have their interest rates published on their websites, or they furnished us with their interest rates. These are publicly available and can easily be verified.
In the future, we will update this to include interest rates for in-house financing offered by some banks for their foreclosed properties. We also plan to include interest rates for refinancing so that the best refinance rates can be seen at a glance. At the moment, the chart only includes interest rates for new home loan accounts/purchases.
Of course, we will also continue to add more banks and lending institutions, and information related to housing loans and mortgage rates being offered here in the Philippines, as they become available. We could also use some help.
Please help us keep this list updated
If you work for a bank or financial institution who provides housing loan products, and your bank/institution is not yet included in our home loan interest rates comparison chart (or if you have updated info, promos, etc.), please contact us and send us details so we can include your info here. The same applies even if you don’t work for a bank/lending institution, but you have information worth sharing here.
We value your feedback and inputs so if you have any comments and/or suggestions, just let us know by leaving a comment below. Thanks!
To our success and financial freedom!
Text by Jay Castillo and Cherry Castillo. Copyright © 2008 – 2013 All rights reserved.
Full disclosure: Although I am an accredited broker of BPI Loans, we included other banks/lending institutions in the chart above. My goal is to create a very objective and unbiased home loan comparison chart, and I intend to keep it that way.
Image courtesy: of ddpavumba / FreeDigitalPhotos.net
P.S. We’ll be updating this on April 2014 to include Veterans Bank and an update for BDO. Please watch for it…