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Renovate Your Home with Ease: Get a House Loan for Renovation

Last updated: April 11, 2024
Written by: Alyssa Divina | Reviewed by: Digido Financial Writers Team

Key takeaways:

  • Home renovation loans in the Philippines are designed to help homeowners finance renovations their home.
  • Home renovation loans are available from government agencies and banks and licensed financial companies.
  • There are several types of home renovation loans in the Philippines including Home Equity Loan, Personal Loans and cash-out Refinance loans, each with different terms and requirements.
  • Digido personal loan with easy application process, can help you fast achieve your home renovation goals and increase the value of your property.
How much money do you need?
10 000
min ₱ 1 000
max ₱ 10 000
You will have to return*: 10 000
All your data is under secure protection!
*Interest payments are approximate. The final loan amount and interest rate must be confirmed in your loan agreement after loan approval
Who can get a Digido loan?
You are 21-70 years old
You are a Filipino citizen
You have a valid government ID

Renovation House loan in the Philippines

A home renovation is one of the only investments that can improve the quality of life in your living space and increase the value of your home in the future. Renovating can boost the return on investment (ROI)(1) of a house. Some homeowners want to add more rooms to accommodate an expanding family or to make some kid or elderly-friendly features. Others want to turn their homes into profitable assets, such as rental property or remodel their homes before selling them to get a higher price.

The most important question is how are you going to finance the renovation. With careful research and planning, you can save money and time in the long run.

How you finance your home improvement depends on two factors: the amount of money you have or your willingness to take out for a loan for renovation of home, and the size of the property to be renovated.

Get a Fast Loan for your Home Improvements!
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Top 5 Ways to Finance a Home Renovation in the Philippines

There are viable options for financing a home renovation in the Philippines. Check out 5 easy methods of financing your home renovation:

  1. Personal Savings: If you have savings set aside, it may be a good idea to use that money to pay for your home renovation. This is the simplest and most cost-effective way to finance your renovation, as you won’t have to worry about interest rates or repayment schedules.
  2. Home Equity Loan: This is a type of loan that allows you to borrow money using the equity in your home as collateral. Home equity loans typically have lower interest rates than other types of loans, and you can use the money for any purpose, including home renovations.
  3. Credit Cards: If you have a credit card with a high enough credit limit, you can use it to finance your home renovation. However, you should be careful not to overspend, as credit cards typically have high interest rates.
  4. Personal Loans: You can apply for a personal loan from a bank or other financial institution to finance your home renovation. Personal loans have fixed interest rates and repayment schedules, which can make it easier to budget for your renovation.
  5. Home Improvement Loans: Some banks in the Philippines offer home improvement loans specifically for home renovations. These loans typically have lower interest rates than personal loans and credit cards, and they can be a good option if you don’t have enough equity in your home to qualify for a home equity loan.

Home Equity Loans in the Philippines

A Home Equity loan allows you to borrow against the market value of your existing home and use the funds for home improvements. If you want to borrow from the government, Pag-IBIG Home Equity Appreciation Loan (HEAL)(2) allows qualified borrowers to loan an amount based on the net value of their home at very low-interest.

Learn How to
Minimize House Renovation Cost in the Philippines

Home Equity Loans has its  pros and cons, and here they are:


  • Lower interest rates: Home equity loans typically have lower interest rates than other types of loans, as they are secured by the value of your home.
  • Large loan amounts: Depending on the value of your home, you may be able to borrow a large amount of money through a home equity loan, making it a good option for major home renovations or other large expenses.
  • Flexible repayment terms: Home equity loans often come with flexible repayment terms, allowing you to choose the length of the loan and the monthly payment amount that best fits your budget.
  • Tax benefits: In the Philippines, the interest paid on a home equity loan may be tax-deductible, which can help you save money on your taxes.
  • Use of funds: Home equity loans can be used for any purpose, not just home renovations. You can use the funds to pay for debt consolidation, education expenses, medical bills, or any other major expense.


  • Risk of losing your home: Because home equity loans are secured by your home, if you are unable to repay the loan, you risk losing your home through foreclosure.
  • Fees and closing costs: Home equity loans may come with fees and closing costs, such as appraisal fees, origination fees, and title fees, which can add up to a significant amount.
  • Time-consuming process: Obtaining a home equity loan can be a time-consuming process, as it often involves a lengthy application process, a home appraisal, and other requirements.
  • Interest rate changes: Home equity loans often have variable interest rates, which means that your monthly payment amount can fluctuate over time, making it difficult to budget.

When Obtaining the Home Equity Loan is Ideal: The conditions where applying for a home equity loan is considered well-timed are when home renovations are costly and time-consuming.

You can Improve the value of your home by using Home Equity Loan personal loan to make home renovations. This can be especially beneficial if you are planning to sell your home in the future, and get a higher sale price and recoup your investment.

Home Loan Refinancing

In addition to a Home Equity Loan, you can obtain funds for home renovation by refinancing. Refinancing involves paying out your current loan with a new one. This new loan has a new interest rate, outstanding balance, monthly installments, and repayment terms. You can put the extra cash from your refinanced home loan toward a home improvement project.

Benefits of Home Loan Refinancing

  • Reduced monthly payments: refinancing is intended to make loan repayments more manageable.
  • Reduced interest rates: one of the most common reasons for refinancing home loans is to pay for lower interest rates.
  • You can pay off your loan earlier: If you change your existing loan from a 30-year term to a 20 or 15-year term, you will pay off your loan sooner than expected. Your interest payments will be reduced as well.

Reasons to Refinance Your Home Loan:  Home loan refinancing is only a good option if you have an excellent credit score and history, a substantial amount of home equity, and you have a plan to complete the home loan as soon as possible.

The Downsides of Home Loan Refinancing

There is no guarantee of approval. Having an existing loan does not guarantee approval of a new loan. Lenders will still look at your credit score and credit history. Also, this can prove to be more expensive than other types of home improvement loans.

A new home loan means that you will be paying interest on your new monthly mortgage rather than reducing your outstanding balance. Similarly, switching your loan from a longer to a shorter term will necessitate higher monthly mortgage payments.

Learn How Much
to Build a House in the Philippines

Home Renovation Loans in the Philippines: Personal Loans

A personal loan for home improvement is like any other unsecured loan used for personal needs such as business or renovating a house to increase its value. Personal loans for the renovation of a home can be obtained from banks, government agencies and financial companies.

The SSS Philippines(3) and Pag-IBIG loans are among the most dependable government loans.

Some banks that offer this kind of loan include: Security Bank Home Improvement Loan, Citi Bank Home Improvement Loan, and BDO Home Loan.

Some financial companies that offer personal loan: Blend.ph, Easycash, Finbro, and Digido.

When to Opt for a Personal Housing Loan for Renovation:  A personal loan is an advantageous option if you require small home improvement projects, you have a very good credit score, or your home equity is inadequate.

Advantages of Digido Personal Loans

Digido is a digital lending platform in the Philippines that provides personal loans to individuals online. One of the many ways that Digido loans can be used is for home renovation.

Digido personal loan to renovate your house can be a great way to get the funds you need fast to complete your project or small, urgent needs, without having to worry about high interest rates or collateral requirements.

Get up to 10.000 PHP

It is important that you can get a loan of up to 25,000 PHP in 15 minutes without leaving your home. Digido has a fast approval process and you can get a loan with only government valid ID

Benefits of Digido Personal Loans for Home Renovation

Advantages and Disadvantages of Personal Loans

  • The application is simpler and less expensive:
    Personal loans do not require appraisals or other services to be approved.
  • No collateral:
    Instead of relying on a borrower’s assets as security, lenders approved an unsecured home loan for renovation based on the borrower’s creditworthiness. Moreover, borrowers with low home equity can qualify for a personal loan.
  • Loans with lower loan amounts:
    You can borrow as low as Php 10,000 which is ideal if you need money for minor home repairs.
  • It has a fixed rate of interest:
    For the loan duration, a single interest rate determined by the borrower’s credit history applies, which means that the monthly payments are predictable and easy to budget for.
  • Shorter repayment terms:
    Personal home loans for renovation have shorter repayment terms compared to other types of home improvement loans, typically ranging from one to five years. This allows you to pay the loan quickly and save on interest payments.
  • Loan repayments must be made more quickly:
    Personal home loans for renovation have shorter terms than other home loans, the monthly amortizations can be difficult on the budget.
  • Increased interest rates:
    Certain personal  loans have higher annual interest rates than other types of home renovation loans. This is due to the simple process of applying for a loan and quick approval of applications.
  • Calculate the cost of your loan payment and click apply now to get started.

🔥 Calculate the cost of your loan payment and click “Apply Now” to get started!

I want to borrow ₱ 10000
Min: ₱ 1000
Max: ₱ 20000
Payment Terms 10 days
7 days
21 days
My Monthly Gross Income ₱ 20000
You return*: 10 000
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We recommend taking a loan!

* Interest payments are approximate. The final loan amount and interest rate must be confirmed in your loan agreement after loan approval.

Tips for Choosing the Best House Renovation Loan in the Philippines

  • Ensure that you are borrowing for the right reasons. Do you really need a kitchen and bathroom renovation? Will the renovation add value to your property? Will a larger kitchen and bathroom enable you to earn more money in the future?
  • Calculate how much you really need and can afford. You don’t want to lose your home in case of foreclosure.
  • Compare interest rates: Look for renovation loan options from different banks and compare their interest rates
  • Check the eligibility requirements of each bank. Some banks may require a higher credit score or a certain level of income, while others may have different requirements.
  • Be aware of the additional fees and charges associated with the loan, such as processing fees, early repayment fees, and late payment charges.
  • Check for prepayment options: Look for renovation loan options that allow prepayment without any penalty.
  • Improve your credit score by working on it. This will give you a better chance of getting better interest rates and terms.
  • Inquire about recommendations and feedback from family and friends who have completed home improvement projects.

Learn about
the Most Expensive Houses in the Philippines

5 Tips for Saving on Home Renovations

Home renovations can be a significant investment, but there are ways to save money without sacrificing the quality of your project. This list contains 5 tips to help you save on home renovations.

  1. Set a realistic budget and stick to it:
    Before you begin your home renovation project, set all the costs involved, such as materials, labor, and permits, and make sure you can afford it.
  2. Plan ahead:
    Start by creating a detailed plan of what you want to accomplish with your renovation. Make a list of all the materials you will need, and compare prices from different suppliers.
  3. DIY where possible:
    Doing some of the work yourself can save you a significant amount of money. For example, you can paint the walls, install light fixtures, and even lay flooring with some practice.
  4. Keep existing structures:
    Consider keeping certain elements, such as cabinets, sinks, and appliances, if they are still in good condition. This can save you a lot of money on materials and labor.
  5. Shop around for the best deals:
    Take the time to shop around for the best deals on materials, appliances, and furniture. Look for sales and discount.

Home Renovation

Final Thoughts

Home improvement has become much easier these days because there are numerous ways to finance a home renovation project. Choosing one, on the other hand, should always be based on reality, which is represented by two factors: project size and budget. Don’t rush your decision to avoid making costly mistakes. Examine the benefits and drawbacks of each funding option. You can always ask Digido for help financing your home renovations.

Get a Quick Loan for any Purpose!


  • How can I get a home renovation loan in the Philippines?
    You have several options: get it from a government agency like Pag-IBIG, or from private bank, or from a reputable lending institution.
  • Is a home renovation loan safe?
    Yes, if you get it from a government agency, a bank with a state license, or a legally registered financing company like Digido.
  • What if I’m not eligible for a Loan loan for renovation of home from the government?
    If you are not eligible for a loan from the government, try private banks and other financial institutions. You may not get approval for a loan for major renovation of the house, but you can borrow a small amount for small renovations.
  • What is the difference between a home loan and house renovation loan in the Philippines?
    A home loan enables you to acquire a house while a house renovation loan is meant for improving the home you already own
  • Why do renovation loans have a higher interest rate?
    Home improvement loans in the Philippines have higher interest rates because unsecured loans are always risk of losing money on the transaction for lenders
  • What are some of the best home rennovation loans in the Philippines?
    Pag-IBIG Home Improvement Loan, SSS Housing Loan for Repairs and/or Improvements, CitiBank Home Improvement Loan, BDO Home Loan, Security Bank Home Improvement Loan, and Digido Personal Loan.
Disclaimer and Editor’s note


Alyssa Divina
Author pages:
Alyssa Divina pens blog articles about a wide range of topics, such as money matters and government transactions in the Philippines. Prior to joining Digido Finance Corp., she served as a journalist for Charlton Media Group, a business news magazine, for two years. She holds a degree in Journalism from the University of the Philippines Diliman.
Digido Financial Writers Team is a team of experts in the field of finance and credit, specializing in writing articles for Digido blogs.

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