🏦 What is a Housing Loan Through a Bank (and What Are the Requirements)?
- Gabriel Mikael
- 2 days ago
- 2 min read
A bank housing loan is a financing option offered by private banks to help you buy, build, or renovate a residential property. Unlike Pag-IBIG, which is government-run, banks offer competitive rates, faster processing, and customized packages depending on your financial profile.
🏠 What Can You Use a Bank Housing Loan For?
You can apply for a housing loan through a bank to:
Buy a house and lot, townhouse, or condominium unit
Construct a house on your own lot
Renovate or expand your existing home
Refinance an existing home loan from another bank or lender
Some banks also allow loan take-outs or bridging loans for ongoing projects.
📝 Basic Requirements for Bank Housing Loans
While requirements may slightly vary by bank, here are the most common documents you’ll need:
🔹 1. Identification & Personal Info
Valid government-issued IDs (at least 2)
Marriage certificate (if married)
Proof of billing or utility bills (for address verification)
🔹 2. Proof of Income
✅ For employed applicants:
Certificate of Employment (COE) with salary details
Latest payslips (usually last 3 months)
Income Tax Return (ITR) or BIR Form 2316
✅ For self-employed/business owners:
Audited Financial Statements (last 2 years)
DTI/SEC Registration
Bank statements (6 months)
Business permit
✅ For OFWs:
Consularized COE and/or employment contract
Payslips or remittance slips
Proof of remittance (3–6 months)
🔹 3. Collateral & Property Documents
Transfer Certificate of Title (TCT) or Condominium Certificate of Title (CCT)
Tax Declaration and Real Property Tax Receipts
Lot plan with vicinity map
Building plan, bill of materials (BOQ), permits (if for construction)
🔹 4. Bank Forms
Completed Housing Loan Application Form
Authorization to conduct credit investigation
Any bank-specific documents required by their loan officer
💰 How Much Can You Borrow?
Banks typically finance up to 80–90% of the property’s appraised value, depending on your income and credit standing.
💡 Loan terms range from 5 to 25 years, and interest rates vary from 6% to 10% per annum, depending on the fixing period (1, 3, or 5 years).
⚖️ Bank Housing Loan vs. Pag-IBIG Housing Loan
Feature | Bank Loan | Pag-IBIG Loan |
Interest Rate | 6–10% (depends on bank) | As low as 6.25% |
Processing Time | Faster (2–3 weeks avg.) | Slower (1–2 months avg.) |
Max Loan Amount | ₱30M or more | ₱6M max |
Flexibility | High (tailored packages) | Limited customization |
Contribution Needed | None required | 24+ monthly contributions |
🏗️ Bonus: Using a Bank Loan for Construction with WallPro
If you’re building your home using WallPro Panels, banks will often require:
Detailed Bill of Materials (BOQ)
Contractor’s license or profile
Approved house plans and permits
WallPro can assist with technical documentation, material costing, and timeline planning to support your loan application.
✅ Final Tip
Before choosing a bank, shop around. Compare:
Interest rates
Fixing periods
Processing time
Loan terms
Client support
📩 Need help preparing documents or estimating construction costs with WallPro Panels?DM us “BANK LOAN” or email info@wallpro.ph — we’ll be happy to assist you.
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