House Financing Options in Philippines

House Financing Options

Having your own property is great – it’s a guaranteed growing investment and a symbol for security. But the truth is, most Filipinos really can’t afford to pay for it on the spot with cold cash. Because of this, real estate developers welcomed the idea of accepting installment payments.

In Philippines, there are three financing options you can choose if you resort to paying your property in installments: through The Home Development Mutual Fund or more known as The Pag-IBIG Fund; through Commercial Bank Financing; and through In-House Financing.


  • The Home Development Mutual Fund

Home Development Mutual Fund (HDMF), more popularly known as the Pag-IBIG Fund, is created by the Philippine Government to provide for the housing needs of the Filipino workers. Its membership is mandatory for all locally employed citizens as well as the Overseas Filipino Workers and Filipino Seamen.

Pag-IBIG Housing has been the most affordable option, with interest rates as low as 6-7%. To avail of Pag-IBIG Housing through developer, there are steps to follow and required documents to submit. They also need to be eligible first with the Pag-IBIG Fund to qualify for their program, then qualify for the requirement of Housing Developer. To know more about Pag-IBIG funds as your financing option, you can visit their official page HERE.


  • Commercial Bank Financing

Bank Financing is one of the most common means to avail a loan, whether it is for business or personal use. Each bank has a different interest rates, depending on the amount of money you would want to loan. If you are purchasing a high-value property, commercial banks can give competitive interest rates, depending on your terms. Most of the time, they has the strictest process on loan approval, with many documents to submit and a required standard income along with some collateral. To know more, below are the list of banks you can find in Davao City that you can approach for your house loan:


  • In-House Financing

At In-House Financing, the buyer directly pays the monthly amortization to developer rather than through the Pag-IBIG or through any commercial banks. Though usually has higher interest rates and shorter terms compared to the previous two options, others still go with this financing scheme since approval is usually faster and requires less documents to submit. Depending on the developer, not all properties for sale in Davao City has an in-house financing option.