Home improvement projects can easily become a cash drain, especially if you use your own money to pay for costs upfront.
If you don’t have a lot of disposable income and would rather not touch your savings to cover renovation costs, you have other decent options to get all the resources you need to start transforming your house into your dream home.
Read on to find the best home improvement loan in the Philippines that checks all the boxes for you.
What Is a Home Improvement Loan?
Home improvement loans typically fall under the umbrella of personal loans. They’re designed for a specific purpose, and that’s to fund repairs, renovations, and other functional or aesthetic improvements around the house.
House renovation loans can cover improvements as simple as replacing a kitchen sink to something as elaborate as remodeling every room. Getting a home improvement loan is an attractive option to homeowners because it usually comes with fixed interest rates and repayment terms. You can predict and manage your cash flow every month while staying on top of your loan repayments.
The way this loan works is that you get a lump sum, which you have to repay over a set period of time with a fixed interest rate. You can use the money to pay for all renovation costs, including labor, equipment, materials, permits, and other necessary expenses. You can also set the money aside for one major project, or divide it and allocate it for smaller, less expensive changes around the house.
With all this in mind, are home improvement loans a good idea? Only you can answer that. Your circumstances are different from everyone else’s, so make sure to take the time to assess what you really need.
Remember, home renovation can be costly—but if it means improving your quality of life, then don’t put it off any longer.
🆚 Home Improvement Loan vs. Home Loan
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House improvement loans and housing loans are fundamentally different as they’re used for different purposes.
While a house improvement loan covers all costs related to the renovations of a house—i.e., cost of labor, permitting fees, cost of materials and equipment, among others—a housing loan is used to acquire real estate property and other related assets.
7 Best Home Improvement Loans in the Philippines
Start with the bank that you already have an account with, or explore other options. You won’t run out of banks, government institutions, and online loan providers that offer home improvement loans in the Philippines.
Take note of the differences between your chosen providers. Some have more straightforward requirements, while others have lower interest rates and more flexible repayment terms. Each one has its own perks that are worth considering—it’s just a matter of choosing which can serve you best. Weigh all your options to find what loan is best for home improvements.
Get a loan for home improvement from some of the most trusted loan providers in the country:
🏡 #UNONow Loan by UNO Digital Bank
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If you’re planning to take out a loan for home improvement but need fresh options, look no further than the #UNONow Loan from UNOBank.[6] This neobank may still be relatively green, but it already offers competitive features that put it on the same level as the other more established providers.
Learn more about the UNOBank loan below. It might just be the answer to the question, “What is the best loan for home improvement?”
Features
The features of the UNOBank loan include the following:
- Minimum loanable amount: ₱10,000
- Maximum loanable amount: ₱200,000
- Interest rates: 1.79%
- Loan terms: 6, 12, 18, 24, 36 months
- Fees:
- Processing fee: 3% of the loan amount or ₱500, whichever is higher
- Documentary stamp tax: ₱1.50 for every ₱200
- Late payment fee: 5% of the unpaid installment or ₱500, whichever is higher
- Loan pre-termination fee: 3% of the unbilled loan amount or ₱500, whichever is higher
- Other key details:
- No collateral required
- Instant loan disbursement
- Flexible payment schedule
Eligibility
- Individuals aged 21 to 65 (must not be older than 65 upon loan maturity)
- Filipino national or citizen, and a Non-U.S. person
- Resides and/or works within Metro Manila, Rizal, Laguna, Bulacan, Pampanga, Cavite, Cebu, Batangas, and Iloilo
- Annual minimum gross income of ₱180,000 or ₱15,000 per month
- If employed, must be tenured for at least six months
- If self-employed, the business must be operational for at least two years
Requirements
- Contact details: Provide an active mobile number and email address that the bank can use to reach you.
- Selfie: Take a photo with liveness detection to ensure the veracity and maximize the security of your account. This is an indispensable part of the electronic Know Your Customer (eKYC) process.
- Valid ID: Provide a valid ID that contains an ID number, your name, gender, and civil status. Valid IDs accepted by UNOBank include:
- Philippine Passport
- Driver’s License
- Unified Multi-Purpose ID (UMID)
- Social Security System (SSS) ID
- Philsys National ID
- Professional Regulation Commission (PRC) ID
Apart from the extensive list of requirements above, UNOBank might still require additional documents as needed.
🏡 SSS Housing Loan for Repairs and/or Improvements
What is the best loan to do home improvements? Could SSS fit the bill? Before you check out its features below, here’s a quick overview of this loan.
The SSS home improvement loan is a lending program under the Social Security System (SSS) that can be used to finance major house repairs and improvements.[1] Use it to fix a dilapidated housing unit or improve its value, whether economically or aesthetically. You can also use this loan to build adjacent structures or external constructions like gates and fences.
Features
- Minimum loanable amount: This will depend on a few factors, namely:
- At least 70% of the appraised value of the collateral (not exceeding 90%)
- Borrower's capacity to pay
- Actual need of the borrower based on the contract to sell or scope of work and bill of materials evaluated by SSS
- Maximum loanable amount: ₱1 million
- Interest rate: 9% per annum
- Loan term: Multiples of five years up to a maximum of 20 years, except for Overseas Filipino Workers (OFWs) who are entitled to a maximum of 15 years
- Fees:
- Processing fee: Half of 1% of the loan amount or ₱500, whichever is higher (but shouldn’t exceed ₱3,000)
- Inspection fee: ₱500
- Other key details:
- Repricing: Loans with payment terms beyond 15 years are subject to repricing
- Acceptable collateral: Transfer Certificate of Title, or Original Certificate of Title, or Condominium Certificate Title (TCT/OCT/CCT) issued in the name of the principal borrower and/or his spouse
- Insurance coverage: Mortgage redemption insurance, fire insurance
Eligibility
You can apply as a principal borrower if you meet the following SSS Home improvement loan eligibility criteria:
- Individual aged not more than 60 years at the time of application (and must not be older than 65 upon loan maturity)
- SSS member with at least 36 months of contributions and 24 continuous contributions in the period prior to application
- No existing or previously granted repair and/or improvement loan by SSS or the National Home Mortgage Finance Corporation (NHMFC)
- Has not been granted final SSS benefits
- Updated (along with spouse) in the payment of other SSS loans, if any
Requirements
- Application form for direct house repair and/or improvement loan (two copies)
- SS ID cards of the principal applicant and his/her spouse, if applicable
- If not available, present two valid IDs with signature, at least one with photo (original and photocopy)
- Certified true copy of the OCT/TCT/CCT issued by the Registry of Deeds together with the owner's duplicate copy
- Latest tax declaration of real property (land and building)
- Official receipt of realty tax payment (original and photocopy)
- Lot or location plan prepared by a licensed geodetic engineer
- Consolidation-subdivision plan approved by the Land Registration Authority or Bureau of Lands
- Complete set of building plan or as-built building plans with the proper approvals and signatures (two copies)
- Specifications and bill of materials and labor (original and photocopy)
- Scope of works showing itemized works to be done according to priority (original and photocopy)
- Building or renovation permit with official receipts (original and photocopy)
- Pictures of existing collateral (the existing house and lot)
- For an existing SSS housing loan under Joint Application (duplex unit)
- Written conformity or consent of the joint applicant or co-owner mortgagor pertaining to the availment of this loan (original copy)
- For condominium units
- Floor plan of the specific condominium unit
- Architectural Plans showing the plan of the specific floor where the unit is located
- First page of the condominium building plans showing the site development plan, vicinity map, etc.
👉 Required Proof of Income by Employment Type
Depending on your employment type, you must also submit the following requirements:
- For employed borrower
- Latest Income Tax Return (original and photocopy)
- Certification of Employment and Compensation (CEC) signed by the employer’s SSS authorized signatory (original copy)
- Two latest monthly pay slips
- For self-employed or professional
- Income Tax Returns for the last three years (original and photocopy)
- Financial Statements for the last three years (original and photocopy)
- Affidavit of undertaking to continue paying monthly SSS premium contributions for the duration of the loan
Apart from the extensive list of requirements above, SSS might still require additional documents as needed.
🏡 Pag-IBIG Home Improvement Loan
The Pag-IBIG home improvement loan interest is among the lowest in the market, making it an ideal choice especially if you’re working with a limited budget. Pag-IBIG even offers a special interest rate as low as 3% for minimum-wage earners, making house renovations affordable for everyone!
Check out the features of this house improvement loan from Pag-IBIG HDMF below. Expand your research by exploring how to avail of a home improvement loan from Pag-IBIG as well as other Pag-IBIG housing loan tips.
Features
- Minimum loanable amount: This will depend on a few factors, namely:
- Actual need
- Desired loan amount
- Loanable amount based on capacity to pay
- Loan-to-Appraised Value ratio
- Maximum loanable amount: ₱6 million
- Interest rate per repricing period:[2]
- 1 year: 5.75% per annum
- 3 years: 6.25% per annum
- 5 years: 6.5% per annum
- 10 years: 7.125% per annum
- 15 years: 7.75% per annum
- 20 years: 8.5% per annum
- 25 years: 9.125% per annum
- 30 years: 9.75% per annum
- Special interest rate for minimum-wage earners: 3% per annum
- Loan term: Up to 30 years, but should not exceed the difference between age 70 and the present age of the principal borrower
- Other key details:
- Acceptable collateral: Clean Title (TCT/OCT/CCT)
- Insurance coverage: Mortgage redemption insurance, or a Sales redemption insurance, whichever is applicable; fire and allied perils insurance
Eligibility
- Individuals aged not more than 65 years at the time of application (and must not be older than 70 upon loan maturity)
- Active Pag-IBIG member with at least 24 months of membership savings (a lump sum payment of the required monthly membership savings is allowed)
- Legal capacity to acquire and encumber real property
- With updated payments in Pag-IBIG Housing Account or Short Term Loan (STL), if any
- No existing or past Pag-IBIG housing loan that has been foreclosed, cancelled, bought back, or voluntarily surrendered
Requirements
Submit the following documentary requirements for your home improvement loan from Pag-IBIG to start the application process.[3] You may apply online by visiting the Virtual Pag-IBIG website.
- Duly accomplished housing loan application with 1x1 ID photo of borrower and/or co-borrower (two original copies)
- In case of discrepancy in the personal details or the borrower and spouse: Notarized affidavit of two disinterested persons (original and photocopy)
- In case of accommodation mortgage: Latest title in the name of the borrower or a relative of the borrower (two complete photocopies of all pages of the title)
- Updated tax declaration and updated real estate tax receipt/s as of the quarter immediately preceding the date of application (two photocopies)
- Latest statement of account with the loan purpose, original loan amount, and outstanding loan balance (one original copy)
- Vicinity map or sketch of the location of property showing landmarks (one original copy)
- For accommodation mortgage: Notarized SPA for accommodation mortgagor (one original copy), and proof of relationship of borrowers (one photocopy)
- Insurance Coverage: Health statement form (one original copy)
- Building plans and specifications with a bill of materials (one original copy)
- If with an outstanding housing account with the Pag-IBIG Fund: Notice of application for a new housing account (one original copy)
- Proof of income (varies per employment type, see below)
- Valid ID of principal borrower and spouse, co-borrower and spouse, and/or owner of title
👉 Required Proof of Income by Employment Type
Depending on your employment type, you must submit any of the following HDMF home improvement loan requirements:
- For locally employed (any of the following)
- Certificate of Employment and Compensation signed by the authorized signatory of the employer (one original copy)
- Latest Income Tax Return (ITR) for the previous year, with attached BIR Form No. 2316 (one photocopy)
- One month pay slip within the last three months prior to the date of the loan application (one certified true copy)
- For self-employed (any of the following)
- ITR or BIR Form No. 1701 (one certified true copy), Audited Financial Statements (one photocopy), official receipt of tax payment from the bank, DTI registration and mayor’s permit or business permit (one photocopy), and sketch of business location
- Commission voucher (one photocopy) or certification of commissions received (one original copy) for the last 12 months
- Certified true copy of transport franchise and valid official receipt or certificate of registration, if applicable (one photocopy)
- Certificate of engagement issued by the owner of the business or the person availing of the services (one original copy)
- ITR BIR Form No. 1701 (one photocopy) for fees on professional services, commissions, or services rendered for the last 12 months
- If income is from foreign remittances: Bank statements (one original copy) or passbook (one photocopy) for the last 12 months
- If income is from rental payments: Notarized lease contract and proof of ownership or rights over the property subject of lease (one photocopy)
Apart from the extensive list of requirements above, Pag-IBIG might still require additional documents as needed.
🏡 BPI Housing Loan for Renovation
Need other options on where to get a loan for house renovations? Check out the BPI home improvement loan, which you can use to renovate your house, start a remodeling project, or initiate a major repair of your residential property.[4]
You may also check out this BPI housing loan guide for other tips.
Features
- Minimum loanable amount: ₱400,000
- Maximum loanable amount: Up to 90% of property value
- Interest rates per fixing period:
- 1 year: 7%
- 2 years: 7.25%
- 3 years: 7.75%
- 4 years: 8%
- 5 years: 8.25%
- 10 years: 10.25%
- 15 years: 10.5%
- 20 years: 12%
- Loan terms: 1 to 20 years
Eligibility
- Individuals aged at least 21 (but not more than 65 years old upon loan maturity)
- With a minimum household income of ₱40,000
Requirements
To apply for a BPI home improvement loan, submit the following documentary requirements at any BPI branch:
- Owner's duplicate copy of the CCT or TCT, as applicable (photocopy)
- Updated tax declaration, tax clearance, tax receipt (photocopy)
- For properties in the secondary market: Signed authorization letter for tax mapping and inspection of property
- For accredited developer tie-up properties: Notarized contract-to-sell, letter of endorsement, or official computation sheet from developers (photocopy)
- For unaccredited projects: Appraisal fee
- Non-refundable appraisal fee of ₱5,000 (inclusive of title verification)
- For refinancing: Latest statement of account with existing mortgagor (photocopy)
- For construction loan: Complete set of building plan, bill of materials, scope of work, or cost estimates
👉 Required Proof of Income by Employment Type
Apart from the requirements detailed above, you must also submit the following documents depending on your employment type to qualify for a BPI home improvement loan:
- For locally employed
- Latest COE
- Latest three months of pay slip
- Latest ITR
- Authorization letter verifying employment
- Bank statements of payroll account, with authorization letter
- If commission-based: COE outlining commissions received and commissions receivable, if any; bank statement where the commission is credited, with authorization letter
- If foreigner: Filipino spouse must act as the primary borrower
- For self-employed
- DTI registration or mayor’s permit
- Latest ITR with audited financial statements
- Working account (at least six months), with an authorization letter
- Trade references (i.e., at least three of each of the major suppliers and clients) with complete contact information
- Authorization letter to conduct trade verification
- For partners of a partnership or corporation:
- Individual ITR
- Payroll account where salaries are credited, with authorization letter
- For rental properties:
- Copy of TCT or CCT
- Copy of valid and notarized lease contracts
- For transport business:
- Copy of LTFRB franchise decision of all units
- Copy of Official Receipt (OR) and Certificate of Registration (CR) of all units
- Authorization letter to conduct franchise verification with LTFRB
- Copy of valid ID of franchise owner
- For practicing professionals
- Working account with an authorization letter
- Latest ITR with audited financial statements
- Clinic or office address with complete contact details
Apart from the extensive list of requirements above, BPI might still require additional documents as needed.
🏡 Security Bank Home Improvement Loan
The Security Bank home loan has one promise—and that’s to make complicated things simpler. You can use it not only to buy or build a house but also to renovate an existing real estate property.[5]
Whether you’re making home improvements to increase the value of your house before selling it, or just doing so to elevate your living conditions, you can count on this loan to make your house goals a reality.
Features
- Minimum loanable amount: ₱1 million
- Maximum loanable amount: Up to 80% of the appraised value
- Interest rates per fixing period (regular home loan):
- 1 year: 7%
- 3 years: 7.25%
- 5 years: 7.75%
- Interest rates per fixing period (home equity loan):
- 1 year: 8%
- 3 years: 8.25%
- 5 years: 8.75%
- Loan terms: Up to 20 years
- Fees:
- Appraisal fee: ₱3,500 within Metro Manila, ₱4,000 outside Metro Manila
- Amendment fee: ₱3,500 to ₱5,000
- Other charges: Estimated 2.5% to 3% of the approved loan amount
- Real estate mortgage fees
- Mortgage redemption insurance
- Fire insurance or construction all risk (CAR) insurance
- Other key details:
- Quick loan approval (within 10 banking days upon submission of complete documents)
Eligibility
Applying for the Security Bank home improvement loan is easy. Apart from being able to present the required documents listed below, the only other major eligibility criterion you have to meet is to have a minimum joint gross monthly income of ₱50,000.
Requirements
To apply for this loan, submit the following documentary requirements at any Security Bank branch:
- Home loan online application form
- Special Power of Attorney (SPA)
- Authorization letter template for property collateral verification and tax mapping
- Copy of collateral title (TCT or CTC)
- Copy of tax declaration on land and/or improvement
- Signed authority to inspect and verify (bank form)
- Appraisal fee
- Bill of materials and estimates of construction and labor cost
- Floor and building plan and building specifications
👉 Required Proof of Income by Employment Type
Apart from the requirements detailed above, you must also submit the following documents depending on your employment type:
- For locally employed
- Filled-out application form
- One valid ID of the borrower, spouse, co-borrower, or signatories of the loan (photo-bearing and government-issued)
- Mortgage redemption insurance application form
- For commission-based income: Latest six months of pay slips
- Any of the following income documents:
- Latest CEC
- Latest ITR
- Latest three months of pay slips
- Latest three months of bank statements
- For self-employed
- Filled-out application form
- One valid ID of the borrower, spouse, co-borrower, or signatories of the loan (photo-bearing and government-issued)
- Mortgage redemption insurance application form
- For licensed real estate brokers and licensed insurance brokers: Latest 12 months' proof of income to credit commission-based income
- Income Tax Return (1701 for sole proprietary owner, or 1702 for corporation)
- Any of the following income documents:
- Audited Financial Statements (latest one year)
- Bank statements (latest three months)
- Lease or rental contracts
Apart from the extensive list of requirements above, Security Bank might still require additional documents as needed.
🏡 Maybank Home Construction Loan
The Maybank Home Construction Loan allows you to build the home you’ve always wanted. This housing renovation loan is all you need to make the changes you want to transform your house into your dream home.[7]
Features
- Minimum loanable amount: ₱1 million
- Maximum loanable amount: Up to 80% of the appraised value of the land and proposed building
- Interest rates per fixing period:
- 1 year: 6.75% per annum
- 3 years: 7.25% per annum
- 5 years: 7.50% per annum
- Loan terms: 1, 3, 5 years
Eligibility
- Individual whose age plus the term of the loan should not exceed 65 years upon loan maturity
- Currently employed for at least two years
- Has a business that has been registered and operational for at least three years and has been profitable in the last two years
- For OFWs: COE for two years
- For seafarers: At least in an officer level position and working for at least two continuous years
- Attorney-in-fact (for OFWs or seafarer applicants)
Requirements
- Filled out housing loan application from
- Valid government-issued IDs
- Marriage certificate (if married) and CENOMAR (if single)
- Building plan
- Bill of materials or construction cost estimates
- Job specification
👉 Required Proof of Income by Employment Type
Apart from the requirements detailed above, you must also submit the following documents depending on your employment type:
- For locally employed
- Three months of pay slip
- Income Tax Return (latest year)
- COE for both spouses
- For self-employed
- Business registration or permits
- Audited Financial Statements (latest two years)
- Company profile or business background, or list of major suppliers and customers with contact details (at least five)
- Income Tax Return (latest two years)
- Latest six months of bank statements or passbook
Apart from the extensive list of requirements above, Maybank might still require additional documents as needed.
🏡 PSBank Home Construction Loan
Renovating your house is easier and more enjoyable when you can afford it and have all the resources you need to make it happen. PSBank offers a housing improvement loan option that allows you to make renovations now without sacrificing your future comfort.
This loan offers a revolving credit line, flexible payment terms, and competitive interest rates to help you make house renovations without compromising your finances.[8]
See below if it’s best to get a home improvement loan with PSBank!
Features
- Minimum loanable amount: ₱500,000
- Maximum loanable amount: Up to 80% of the project's appraised value
- Interest rate: Prevailing Home Construction Loan rate at the time of line setup
- Loan term: 1 year during the construction period. After the construction period:
- 1 year, renewable annually (for revolving credit line)
- Up to 25 years (for term financing)
- Other key details:
- Acceptable collateral: First Real Estate Mortgage (REM) over an acceptable residential property
- Revolving credit line during the construction or renovation period
Eligibility
- Filipino resident
- Aged 22 to 54 years old
- Currently employed or self-employed
Requirements
- Filled-out PSBank home loan application form
- Cash or check payable to PSBank as non-refundable payment for appraisal fees
- Transfer Certificate of Title (photocopy)
- Contract to sell or reservation agreement (if acquiring a lot from an accredited developer)
- Floor and building plan and building specification
- Bill of materials and estimate of construction and labor costs
- Valid photo-bearing IDs with signature
- Copy of marriage contract (if married)
- Copy of court decision on annulment and certificate of finality of decision (if annulled)
- Copy of court decision on legal separation and certificate of finality of decision (if legally separated)
Apart from the extensive list of requirements above, PSBank might still require additional documents as needed.
How to Save on Home Renovation Costs
Now that you have the funds, whether bootstrapped or borrowed, the next thing you’ll need to do is to maximize every cent. Here are the things you need to do:
💸 Stick to Your Budget
Home improvements are akin to grocery shopping. To avoid unnecessary expenses, stay within your budget. Before you go out and shop, you must already have a definitive list of materials needed.
💸 Do Things Yourself
Save money by taking on some small or doable renovation tasks, such as decorating the interior and recycling old furniture pieces. However, some tasks should be left to the professionals. These include installing electrical wiring, tiling, painting, and roofing, among others.
Read more: Try Out These Simple, Low-Cost Filipino House Interior Design Tips
💸 Plan with Professionals
On a related note: Some homeowners forego the services of architects and engineers, thinking they’re just an added expense. However, your plan needs the approval and validation of such professionals to make sure that your home is sturdy. If the structural integrity of your renovated home fails, you’ll find yourself shelling out more money. Save money—and lives!—by getting professionals on board.
💸 Wait for Sales and Big Discounts
Appliance and home improvement shops offer big sales and discounts from time to time. Subscribe to their newsletters or social media alerts to be notified of their promos.
💸 Go for High-Quality and Trusted Services
When it comes to home renovation, quality is everything. And it usually comes with a price.
Never ever skimp on this part. Otherwise, you’ll end up spending more than you’ve planned. You don’t want do-overs to happen due to low-quality work, so be willing to spend on high-quality services from the get-go.
Final Thoughts
Before you apply for one of the loans above, you must know when to use it. It’s not always wise to take out a home improvement loan for a minor repair that costs just a few hundred or thousand pesos. A credit card might be better suited for that.
The minimum loanable amount for a home improvement loan is typically high, so make sure you really need the money before you bite. If you’re planning a major renovation that can cost hundreds of thousands to millions, then this type of loan is right up your alley.
You’ll eventually find the best home improvement loan in the Philippines that best suits your needs—just weigh all your options and don’t make unnecessary compromises. With proper research, you can find the perfect match!
If you're looking for more personal loans, consider these options and apply through Moneymax:
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Sources:
- [1] Housing Loan for Repairs and/or Improvements (SSS website)
- [2] Pag-IBIG Fund lowers home loan rates (CNN Philippines, 2023)
- [3] Requirements for a Pag-IBIG Housing Loan (Pag-IBIG website)
- [4] BPI Housing Loan for Renovation (BPI website)
- [5] Security Bank Home Improvement Loan (Security Bank website)
- [6] UNOBank UNOnow Loan (UNOBank website)
- [7] Maybank Loan (Maybank website)
- [8] PSBank Home Construction Loan (PSBank website)
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