Philippine banks' honeymoon mortgage rates: What OFWs should compare before buying

Philippine banks and lenders are competing for homebuyers, including overseas Filipino workers, with promotional "honeymoon" mortgage rates that require careful comparison against long-term repricing terms. The market faces a condo glut with up to 80,000 unsold units, favoring selective buyers. Banks offer varying fixed rates, with Pag-IBIG providing promotional rates as low as 5.75% for one year and 7.125% for a 10-year period, while BDO lists 6.00% for one year and 8.50% for 10 years. BPI offers 7% for one year and 10.25% for 10 years, with PSBank at 9.25% for 10 years. Borrowers must consider that rates reset after fixed periods, potentially increasing monthly payments. The Bangko Sentral ng Pilipinas raised its key rate to 5% on Sept. 1, 2026, its third consecutive increase, affecting mortgage pricing. OFWs should compare repricing formulas, fees, and down payments, not just advertised rates, and consider that a 6% versus 8% rate on a ₱5-million loan could mean ₱5,200 more in monthly payments.