We continue our research regarding interest rates charged by local banks on housing loans in the Philippines.
Last week, we already got the Bank of the Philippine Islands (BPI)‘s housing loan interest rates. Our goal, before the end of September, is to update our 2011 article Housing loan interest rates in the Philippines to include rates for the year 2012.
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We recently inquired with BDO (Banco de Oro) about their home loan offerings. Here is the information we got about their housing loan interest rates as of September 2012.
Banco de Oro (BDO) Housing Loan interest rates – 2012
|Tenor (No. of Years)||Interest Rate|
|1 - 3 years||7.75%|
It seems that BDO has lower interest rates compared to BPI, especially for shorter-term loans. While BPI charges 8.75% for home loans with duration of two to three years, BDO charges only 7.75% for loans with a 1-3 year term.
BPI does offer a yearly repricing rate of 7.50% which is slightly lower than BDO’s 1-year rate, but take note that the annual repricing option means the rate is not fixed but adjusted every year and may run the risk of being higher than the previous year.
Of course, BPI’s special promo rate of 7.50% fixed for 5 years is still a lot lower, but interested borrowers need to rush since this promo lasts only until the end of September.
We will continue to get the housing loan rates from other banks so we’ll have more information when we compare each bank’s loan offerings.
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