How to Get a Mortgage in Philippines as a Foreigner
The Philippines offers a range of property financing options for foreign buyers, making it an attractive destination for real estate investment. With typical lo
Financing options in the Philippines offer diverse opportunities for both local and foreign investors. With competitive interest rates and a variety of mortgage products, investors can tailor their financing to suit specific needs. The country's robust banking sector provides reliable support, though investors should be mindful of processing times and ensure they meet all requirements for approval.
Foreign buyers in Philippines typically need a larger deposit compared to residents. Most banks require 25-40% down payment for non-resident mortgages. Plan your financing accordingly.
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Historical view of mortgage interest rates, inflation trends, and economic growth indicators.
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Track property affordability through price-to-income ratios and rental yield percentages over time.
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Inflation Rate
3.3%
Interest Rate
6.25%
• Higher price-to-income ratio (27.0) reflects premium market positioning and strong demand.
Residential properties, foreign buyers
Contact: international@bdo.com.ph
Vacation homes, urban properties
Contact: global@metrobank.com.ph
Commercial properties, mixed-use developments
Contact: contact@bpi.com.ph
Luxury properties, foreign investors
Contact: info@securitybank.com
Residential and commercial properties
Contact: global@rcbc.com.ph
Tip 1: Focus on properties near transport hubs for better rental yields.
Tip 2: Consider areas with upcoming infrastructure projects.
Tip 3: Invest in mixed-use developments for diversified income.
Tip 4: Look for properties in established business districts.
Tip 5: Explore vacation rentals in tourist-heavy areas.
Tip 6: Assess the developer's track record before buying pre-construction.
Tip 7: Use local property management services for efficiency.
Tip 8: Stay informed about local real estate regulations.
Tip 9: Diversify your portfolio across different cities.
Tip 10: Leverage financing options to maximize returns.
| City | Price/m² | Rental Yield | Price Growth | Popular Areas |
|---|---|---|---|---|
| Manila | €3,500 | 5.0% | +6.5% YoY | Makati, Bonifacio Global City, Ortigas Center |
| Cebu City | €2,800 | 5.5% | +5.0% YoY | IT Park, Mactan, Banilad |
| Davao City | €2,200 | 6.0% | +4.8% YoY | Lanang, Matina, Buhangin |
| Tagaytay | €1,800 | 4.5% | +3.5% YoY | Silang Junction, Mendez, Kaybagal |
| Baguio | €2,000 | 5.2% | +4.0% YoY | Session Road, Camp John Hay, Mines View |
Local banks in the Philippines are increasingly working with foreign buyers to provide mortgage options. Typically, these banks require a down payment of 20% to 40%, with interest rates ranging from 6% to 8% per annum. Loan terms can extend up to 25 years, offering flexibility for investors. Key documentation includes a valid passport, proof of income, employment verification, and bank statements. Foreign buyers may also need to present a credit report and, in some cases, a Special Resident Retiree’s Visa (SRRV) to qualify for a mortgage.
Start gathering your documentation 2-3 months before applying. Non-resident mortgage applications typically require notarized translations and apostille stamps for foreign documents, which can take several weeks to process.
Use our interactive mortgage calculator to estimate your monthly payments for a property in Philippines.
Financing Tip
Your down payment of 20% or more typically qualifies you for the best available rates.
Property developers in the Philippines often offer flexible financing plans to attract foreign investors. These plans typically involve a reservation fee, followed by a series of scheduled payments. A common structure includes a 10% to 20% down payment, with the remaining balance paid over a period of 24 to 60 months. This staged payment approach allows buyers to manage their finances effectively while securing property in prime locations. Understanding the terms and conditions of these payment plans is essential for making informed investment decisions.
Always verify the developer's credentials, track record, and financial stability before committing. Request to see building permits, completion guarantees, and consider using escrow accounts for staged payments.