Can foreigners borrow to buy property in the Philippines?
Banks in the Philippines do not generally provide finance to foreigners wishing to buy property, as foreigners are not permitted to own land. However, as foreigners are able to own condominiums in the Philippines, they may be able to obtain mortgages to buy condominiums, so long as Filipinos own 60% or more of the building, and foreigners own 40% or less.

Where can I start looking for a home loan in the Philippines?
Banco de Oro has housing loans, limited to properties classified as condominiums, that are open to foreign nationals who meet certain visa requirements. Click here for qualifying details. The maximum loan is up to 80% of the appraised value of the property, with a minimum loan of P500,000 and term of up to 20 years.

Bank of the Philippine Islands (BPI) also has loans for condominiums that are open to foreigners. The minimum loan is P400,000 with a maximum of 60% of appraised value of vacant lot or residential condominium. The minimum qualifying total household income is P40,000 and the loan term for residential condominiums is a maximum of 10 years. 

Union Bank will lend to foreigners who wish to buy a residential condominium and are supported by a valid Alien Certificate of Registration (ACR) or Special Resident Retiree Visa (SRRV). The minimum loanable amount is P500,000.00, while the maximum loanable amount is up to 90% of the property’s selling price.

It is also possible to obtain loans to buy property in the Philippines from foreign banks. HSBC for example offers local information and services to support your real estate purchase. Although their mortgages in Philippine peso (PHP) cannot be offered to non-residents, non-residents interested in mortgages may avail of USD, GBP or HKD mortgages with an account in their home country.

Philippine National Bank has a home loan through their Singapore branch that is open to foreigners to purchase property in the Philippines. However, for foreigners the loan is limited to the acquisition of condominium units only where the majority is owned by Filipinos, as required by Philippine Law. The borrower's gross annual salary should be at least SGD 48,000.00 and Total Debt Servicing Ratio must not exceed 60% of Gross Monthly Income.

What about in-house financing from condo developers?
It is possible for foreigners to buy a condominium using in-house financing solutions with the major developers. However, be aware that the interest rates are likely to be significantly higher than those you will find elsewhere, up to 15 per cent. A down payment of 10 per cent to 20 per cent is usually required. It is also a good idea to verify that the developer is licensed to sell their condo project with the Housing and Land Use Regulatory Board (HLURB). More on HLURB can be found in our glossary here.

How long will it take?
Obtaining a loan to purchase property in the Philippines can take around 5 days for approval, and up to a month for the funds to be released.

Similar to this:

Introduction to Philippines real estate

Renting property in the Philippines

Property taxes in the Philippines

Buying property in the Philippines

Philippines real estate glossary