Can Americans get mortgage in Philippines?

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BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in the Philippines. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At BambooRoutes, we explore the Philippine real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Manila, Cebu, and Davao. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

Can Americans legally buy and own real estate in the Philippines, and what restrictions apply to foreigners?

Americans cannot directly own land in the Philippines under the Foreign Investment Act and the Constitution.

The Philippine Constitution restricts land ownership to Filipino citizens and corporations that are at least 60% owned by Filipinos. This means Americans cannot purchase residential lots, agricultural land, or commercial land parcels in their own name.

However, Americans can legally own condominium units as long as foreign ownership in the entire building does not exceed 40%. When purchasing a condo, Americans receive a Condominium Certificate of Title (CCT) that proves legal ownership of the unit and a proportional share of the common areas.

As of September 2025, Americans can also enter into long-term lease agreements for land, typically up to 50 years with a renewable 25-year extension. Recent legislation has introduced 99-year lease options for certain investment projects, though these are primarily for commercial developments.

Violation of these ownership rules can result in property forfeiture, so Americans must ensure compliance before making any purchase.

What alternatives exist for Americans who cannot own land directly, such as condominiums, long-term leases, or setting up a corporation?

Americans have several legal alternatives to direct land ownership in the Philippines.

1. **Condominium Ownership**: Americans can own condo units outright as long as total foreign ownership in the building stays below 40%. This is the most straightforward option for residential property ownership.2. **Long-term Leases**: Land can be leased for up to 50 years with a renewable 25-year extension. As of 2025, some areas offer 99-year lease terms for qualified investors.3. **Corporate Structure**: Americans can establish a Philippine corporation with at least 60% Filipino ownership to purchase land. However, this is primarily for business use, not personal residence.4. **Marriage to a Filipino Citizen**: Property can be purchased under a Filipino spouse's name, with conjugal property rights applying during marriage.5. **Usufruct Agreements**: Americans can enter into usufruct contracts that grant the right to use and profit from land without ownership, typically lasting the foreigner's lifetime.

Each alternative has specific legal requirements and restrictions that must be carefully followed to ensure compliance with Philippine law.

Which Philippine banks actually provide mortgage loans to foreign nationals, and what eligibility requirements do they have?

Several major Philippine banks offer mortgage loans to American citizens, though with stricter requirements than for locals.

Bank	Mortgage for Foreigners	Key Requirements
Philippine National Bank (PNB)	Yes	Long-term visa, stable income proof, TIN
Banco de Oro (BDO)	Yes	Work visa, employment contract, bank statements
Bank of the Philippine Islands (BPI)	Yes	Resident visa, tax returns, income verification
Security Bank	Yes	Special investor visa acceptable, collateral required
China Bank	Yes	Employment in Philippines, Filipino guarantor preferred
RCBC	Yes	Age 21-65, stable income, valid visa status
Metrobank	Yes	Long-term residency, employment certification

Most banks require Americans to have a Tax Identification Number (TIN), valid long-term visa status, and documented proof of stable income either from Philippine or foreign sources.

Do Philippine banks require permanent residency, Filipino spouse, or special visa for Americans to qualify for mortgages?

Philippine banks do not typically require permanent residency, but they do require valid long-term visa status for Americans seeking mortgages.

Acceptable visa types include work visas, Special Retiree's Residence Visa (SRRV), Special Investor's Resident Visa (SIRV), and other long-term permits. Tourist visas are generally not sufficient for mortgage approval.

Having a Filipino spouse significantly improves mortgage eligibility, especially when purchasing land or houses. Many banks prefer joint applications with a Filipino citizen as it reduces their risk and ensures compliance with ownership laws.

Banks typically require the applicant to demonstrate ties to the Philippines through employment, business interests, or long-term residence plans. Some banks may accept Americans without local employment if they can show substantial foreign income and strong financial standing.

It's something we develop in our Philippines property pack.

What loan-to-value ratios do Philippine banks offer to Americans, and what are the minimum and maximum limits?

Philippine banks typically offer loan-to-value (LTV) ratios of 60-70% to American borrowers, which is lower than rates offered to Filipino citizens.

PNB offers up to 70% LTV for qualified foreign borrowers with strong financial profiles, while most other major banks cap foreign loans at 60-65% LTV. This means Americans must provide larger down payments, typically 30-40% of the property value.

For condominium purchases, some banks may extend up to 80% LTV if the project has strong developer credentials and the borrower has excellent creditworthiness. However, this higher ratio is rare and usually reserved for premium projects in Metro Manila.

Minimum loan amounts typically start at ₱1 million (approximately $18,000), while maximum limits vary by bank but generally cap at ₱20-30 million ($360,000-540,000) for foreign nationals.

Banks may adjust LTV ratios based on the borrower's visa status, employment stability, and the specific property location.

What interest rates and repayment terms do Philippine banks offer to Americans, and how do they compare to Filipino citizens?

As of September 2025, Philippine banks charge Americans interest rates ranging from 7-9% for mortgage loans, which is typically 2-3 percentage points higher than rates offered to Filipino citizens.

Filipino citizens can access mortgage rates as low as 5-7% through various banks and government programs, while Americans face higher rates due to perceived higher risk and lack of access to subsidized lending programs.

Repayment terms for Americans typically range from 5-20 years, compared to up to 30 years available to Filipino borrowers. Most banks offer both fixed and variable rate options, with fixed rates generally 0.5-1% higher than variable rates.

Metrobank's 2025 promotional rates start at 6.5% for qualified foreign borrowers, while BPI offers competitive rates around 7.5% for Americans with strong credit profiles. However, these promotional rates often reset to higher market rates after an initial period.

Banks may offer better terms to Americans with Philippine employment, substantial local bank deposits, or those purchasing premium properties in established developments.

What documents must Americans provide when applying for a mortgage in the Philippines?

Americans need to prepare extensive documentation when applying for Philippine mortgages, significantly more than typical U.S. mortgage applications.

1. **Identity and Legal Status**: Valid U.S. passport, Philippine visa or residence permit, Tax Identification Number (TIN) from the Bureau of Internal Revenue2. **Income Documentation**: Employment contract or certificate, latest payslips (3-6 months), bank statements from both U.S. and Philippine accounts, tax returns from both countries3. **Property Documents**: Sales contract or reservation agreement, deed of absolute sale, property tax declarations, building permits and certificates4. **Personal Documents**: Marriage certificate (if applicable), birth certificate, medical certificate, character references from employers or professionals5. **Financial Statements**: Asset declarations, liabilities summary, credit reports from both countries (if available)

Banks typically require documents to be notarized and may request additional certifications from the Department of Foreign Affairs or U.S. consular services for certain papers.

Processing times can extend 60-90 days due to document verification requirements, so Americans should begin preparation well before their planned purchase date.

Do banks require Americans to have a Filipino co-borrower or guarantor, and in which situations?

Banks often require or strongly prefer Filipino co-borrowers or guarantors for Americans, particularly when financing properties involving land ownership.

For condominium purchases, Americans may qualify independently if they meet all income and visa requirements. However, having a Filipino co-borrower typically improves approval chances and may secure better interest rates.

Land and house purchases almost always require a Filipino co-borrower since foreigners cannot own land directly. In these cases, the Filipino spouse or partner becomes the legal property owner, with the American as a co-borrower on the mortgage.

Some banks accept non-Filipino guarantors if they have substantial Philippine assets or long-term resident status. However, most prefer Filipino citizens as guarantors due to easier legal recourse in case of default.

China Bank and RCBC particularly favor applications with Filipino guarantors, even for condominium purchases, as it reduces their perceived risk exposure.

What upfront costs should Americans expect when buying property with a mortgage in the Philippines?

Americans face substantial upfront costs when purchasing Philippine property with a mortgage, typically totaling 35-45% of the property value.

The down payment alone requires 20-30% of the purchase price, significantly higher than typical U.S. mortgage down payments. For a ₱5 million condo, this means ₱1-1.5 million upfront ($18,000-27,000).

Tax obligations include capital gains tax at 6% of the property value, documentary stamp tax at 1.5%, and local transfer taxes ranging from 0.5-0.75%. These taxes are typically split between buyer and seller but Americans often end up paying the majority.

Bank fees include appraisal costs (₱10,000-25,000), processing fees (1-2% of loan amount), and various administrative charges. Notarial fees and legal documentation can add another ₱50,000-100,000 to the total cost.

Title insurance, while not mandatory, is highly recommended and costs approximately 0.25-0.5% of the property value. Americans should budget an additional 5-10% buffer for unexpected costs during the transaction process.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in the Philippines versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

Are there restrictions on property types Americans can finance with mortgages in the Philippines?

Philippine banks will only finance properties that Americans can legally own, which primarily limits mortgage options to condominium units.

Residential condominiums represent the main property type available for American mortgage financing, provided the building maintains the 40% foreign ownership cap. Banks readily finance units in established developments from reputable builders like Ayala Land, SM Development, and Megaworld.

Land and house combinations require Filipino ownership, meaning the mortgage would technically be in the Filipino spouse's or partner's name with the American as a co-borrower. This arrangement allows financing but creates ownership complexities.

Commercial properties face additional restrictions and typically require corporate ownership structures. Banks are more cautious with commercial mortgages for foreigners and may require higher down payments or shorter loan terms.

Vacation homes, raw land, and agricultural properties are generally not available for American mortgage financing due to ownership restrictions and bank risk policies.

What risks and limitations should Americans understand about Philippine mortgages?

Americans face several unique risks when taking mortgages in the Philippines that don't exist in U.S. property markets.

Foreclosure laws heavily favor lenders in the Philippines, and the process can be swift compared to U.S. protections. Americans may lose both their property and invested capital if unable to meet payment obligations, with limited legal recourse options.

The 40% foreign ownership cap for condominiums creates ongoing risk - if the building exceeds this limit through subsequent sales, it could affect the American's legal ownership status. Buildings must maintain accurate foreign ownership registers, but enforcement varies.

Currency risk poses a significant concern for Americans earning in dollars but paying peso-denominated mortgages. Exchange rate fluctuations can substantially increase the effective cost of mortgage payments over time.

Americans cannot access government-subsidized lending programs like Pag-IBIG housing loans, which offer lower rates and better terms to Filipino citizens. This creates a permanent disadvantage in borrowing costs.

It's something we develop in our Philippines property pack.

What alternative financing options exist for Americans besides traditional bank mortgages?

Americans have several alternative financing options beyond traditional Philippine bank mortgages, each with distinct advantages and limitations.

1. **Developer Financing**: Major developers like Ayala Land and SM offer in-house financing with flexible terms but typically at higher interest rates (8-12%) and shorter repayment periods.2. **Offshore Bank Loans**: Some international banks provide USD-denominated loans secured against Philippine property, though these require substantial deposits and existing banking relationships.3. **Private Lending**: Local private lenders offer faster approval but charge premium rates (10-15%) with shorter terms, suitable for time-sensitive purchases.4. **Home Equity Financing**: Americans can leverage U.S. property equity through home equity lines of credit to fund Philippine purchases outright, avoiding local mortgage complications.5. **Seller Financing**: Some property owners, particularly expatriates, offer direct financing arrangements with negotiable terms and potentially lower rates than banks.

Each alternative requires careful evaluation of interest rates, currency exposure, and legal implications. Americans should consult both U.S. and Philippine financial advisors before committing to alternative financing structures.

It's something we develop in our Philippines property pack.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. Respicio & Co. - Requirements for Foreigners Buying a Condo
2. China Briefing - Foreign Ownership Rules in the Philippines
3. Veles Club - Philippines Property Investment Guide
4. N90 Asia - Home Loan for Foreigners in the Philippines
5. Respicio & Co. - Housing Loan Eligibility Requirements
6. Emerhub - Buying Property in the Philippines as a Foreigner
7. Philippine National Bank - Los Angeles Branch Services
8. Metrobank - Home Loan Promotions 2025