Why get home improvement loans?

Having to pay for home improvement loans could be just as tasking as getting a home loan for your dream house. Being prepared ahead of time is always the best choice, but when cash in hand isn’t enough, a personal loan for home repairs could be a good way to go. For a country always distraught with natural calamities, a loan can be good for p

A good reason to take a personal loan is that your home will surely stay with you. Unlike secured loans where your home becomes a collateral, an unsecured personal loan will depend on your creditworthiness. Interest rates are usually be higher, but application and approval are usually faster than other options, like a PAG-IBIG loan.

Bank Personal Loan vs PAG-IBIG

The Pag-Ibig loan started to help regular Filipinos get their own homes. They are now one of the main services Filipinos go to for a housing loan. Loan tenures range from 3 years up to 30 years with interest rates starting at 6.5%. This option is ideal for people earning a maximum of ₱17,500 since interest rates will range between 4.5% up to 6.5% for loans up to ₱750,000. Anything above this will gain higher interest rates.

If you’re planning on choosing a bank for your home improvement loans, you’ll be getting some free services such as consultancies and insurance. You also have the flexibility to choose a floating interest rate where rates will be based on the current market values.

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How much can I borrow to renovate my house?

Bank financing varies depending on the bank you’ll be choosing, but the average maximum amount ranges at around ₱2,000,000. Most home improvement expenses average at around ₱500,000 to a million for works such as renovating your garage or changing your kitchen.

UCPB Personal Loans

UCPB offers a ₱42,778 monthly amortisation for a loan tenure of 3 years with a borrowed amount of ₱1,000,000. Added interest is quite high at 35% which is around ₱540,000 added to the ₱1,000,000 principal amount. For you to avail home improvement loans from UCPB, you’ll need to have an active credit card and checking account with UCPB.

PBCOM Personal Loans

PBCOM offers the lowest monthly fee of ₱35,833 for a loan tenure of 4 years. Total payment will be ₱1,722,500 which has a 41.8% added interest from the principal amount. Just like UCPB, the applicant must also have an active credit card with the bank for at least 12 months.

Sterling Bank of Asia Personal Loans

If all you need is around ₱500,000 from home improvement loans, Sterling Bank of Asia will be the best choice for a 2-year loan tenure. Total payment will reach ₱676,000 with 26% added interest. You need to have a landline number and must have had it for at least 1 year to avail this personal loan for home repairs.

What are the requirements for home improvement loans?

Most banks offering home improvement loans will only take about a week to have your application approved. It’s always best to be prepared ahead of time and prepare the right documents needed. Some of these documentary requirements are:

  • Photocopy of 2 IDs

  • Proof of billing with your address

  • Certificate of employment

  • Latest payslip

  • Latest BIR form 2316

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GoBear Reviews: Compare before you commit advocacy

At GoBear, we want to teach Filipinos to use our comparison tools with instant quotes before going to the bank to apply. Our comparisons offer the highest transparency, allowing you to see how much of the total loan goes to bank fees, interest rates and how much of the loan actually reaches your hands. While GoBear does not have agents to process your application, this startup does not charge a single cent for using the website. When you're ready to apply for your home improvement loans, we redirect your details to the bank or bank provider and they will handle you from there.

Our bank partners and bank providers do not charge processing fees as well and there are no upfront fees. When you apply with our partners, all requirements can be sent via email to them so you won't have to leave your home. When you click through with GoBear, we get a small marketing fee from our partners. And since we don't sell or get commission from helping you compare personal loans for renovating your home, you are assured that the values you see in the quotes cards are the nearest estimates from the bank. No commissions on top.

Comparison made easy — that's the GoBear promise.

Are you searching for the best home improvement loans or for your renovation? Compare personal loans with GoBear to find the best rates available.