Best online mortgages and home loans services in the Philippines
In the Philippines, there are a lot of organizations offering a mortgage loan service. There are two types of interest rates for mortgage registration: fixed and fluctuating. Banks that establish high fixed rates, match the interest with the payments duration. As a result, repaying the debts is comfortable for clients.
The Philippine institutions offer a range of housing loan programs. The borrower should review each of them and choose the one suitable for specific needs. For example, some institutions offer a mortgage loan only if the client purchases a commercial type area, while others agree to issue funds for the purchase of a residential house.
A mortgage loan advantages
A mortgage loan makes the acquisition of a house or land available to everyone. Real estate in the Philippines is desirable due to unique architectural projects, warm climate and beauty spot.
A housing loan is economically advantageous. Real estate prices in the Philippines strongly depend on the dollar rate. Therefore, independent funds accumulation rarely justifies expectations. Formalizing a housing loan Philippines now, a person becomes the owner of real estate. Despite the fact that the debt to the bank is repaid within 10 years, the mortgage is more reliable than the rent. Thus, the debt will be gradually repaid, housing prices will rise, and the purchased apartment or house will forever remain your property.
Where it is better to take a housing loan in the Philippines?
Applying to the bank for a housing loan in the Philippines, the borrower gets the right to purchase or reconstruct real estate. Below, there are the names of the most popular organizations, whose lending conditions suit Filipinos.
Mortgage from BDO
BDO is a financial institution with many branches in the country (including small towns). Advantages of cooperation with the bank:
application approval takes no more than 5 working days;
customers with good credit history are offered bonus programs;
the minimum amount of a mortgage loan is 500,000 pesos;
The housing loan is issued for a period of up to 20 years.
12 months – 5.50%
24-36 months – 6.5%
48-60 months – 6.88%
If the price of the chosen property exceeds 500,000 pesos, the client has the right to get a loan equal to 80% of the total cost of the house.
Mortgage from Pag-IBIG Fund
Home loan interest rate of the organization are clearly distributed from the minimum to the maximum repayment period. Their indicators are the following:
1 year – 5.4%
3 years – 6.4%
5 years – 7,2%
10 years – 8%
15 years – 8.6%
20 years – 8.8%
25 years – 9%
30 years – 10%
For customers receiving a minimum monthly salary, interest rates change in accordance with financial possibilities. The maximum amount of a mortgage loan in the Pag-IBIG Fund is 450,000 pesos.
Mortgage from BPI
BPI is another financial institution in the Philippines that provides housing loan services. The requirements for the borrowers of BPI are standard: to be an adult citizen of the Philippines, whose age does not exceed 65 years at the end of the payment period.
BPI also helps foreigners to formalize mortgage loans. In this case, a person must have permission for a long stay in the country (permanent residence). The minimum loan amount is 400,000 pesos, the maximum – no more than 70% of the total value of the house or apartment.
To be able to repay the debt to BPI, the average monthly income of the borrower must be at least 40,000 pesos. Mortgage loans are issued for a period of up to 25 years.
Mortgage from Metrobank
Metrobank is known in the Philippines as the “Metropolitan Bank”. Interest rates of the institution:
The above indicators are demonstrated for reference only. The rates are reviewed by the agency employee individually. The maximum payment period is 25 years.
Mortgage from Security Bank
Since 2015, the bank offers retail banking services, as well as commercial and corporate lending. Security Bank is considered the eighth largest and most reliable bank in the Philippines. Interest rates:
12 months – 5.25%
24-36 months – 6.25%;
48-60 months – 7%;
72-120 months – 8%;
132-180 months, 9%.
The maximum payment period is 20 years. The annual interest for the payment term exceeding 15 years should be clarified directly with the bank.
Mortgage from PSP Bank
In February 2018, the bank has changed interest rate. The fixed indicators are the following:
1 year – 6%
5 years – 7,5%
15 years – 9.25%
25 years – 9.75%.
The minimum mortgage is 1,000,000 pesos, the maximum is 25,000,000 or 80% of the total cost of the house exceeding the terminal threshold. Payments terms are slightly different from those established by other banks. Only 10 years to repay the debt are given to the borrower who has formalized a loan for the land. A client who has taken a mortgage to buy a house or an apartment can extend the payment period to 25 years.
Mortgage from RCBC
The minimum loan amount is 300,000 pesos, the maximum loan is up to 80% of the total property cost. The housing area must be at least 50 sq.m. (the 1st floor is considered) and 25 sq.m. for a condominium (several owners). Calculating the ratio of interest and the desired repayment period can be made using the mortgage calculator presented on the bank’s website.
Mortgage from SSS
The abbreviation of the name stands for Social Security System. The organization offers home loans in the Philippines for OFW (Overseas Filipino Workers). The home loan Philippines interest rate varies depending on the loan amount:
up to 1 million pesos – 9%;
from 1 000 001 to 1 500 000 pesos – 10%;
from 1,500,001 to 2,000,000 pesos – 11.
The loan is issued to the people who left their country 24 months ago and more. The age of the borrower must be less than 65 at the time of full debt repayment.
Requirements for a home loans
To apply for a housing loan in the Philippines, the applicant must be of legal age and must provide:
A completed loan form. A sample form is published on bank websites. It’s allowed to compile the document online. It is also possible to address personally to a branch for applying. Please fill out the form carefully, considering each point.
Documents confirming identity. They must include the photograph and signature of the applicant. These can be: a passport (required), an international passport, a driving license, a state card, an immigrant card, etc.
Documents confirming solvency (an extract from work for the employed clients, an extract from bank accounts and a report from the tax for entrepreneurs and freelancers).
Documents for encumbered property (if any).
This list is not exhaustive. The exact number of documents is determined by the bank employee upon personal appeal of the applicant.
How to get a housing loan in the Philippines?
Banks of the Philippines are not so loyal to foreigners, as to country citizens. To get approval for a mortgage loan in a Philippine bank, you need to pass correctly each step of the procedure:
To review offers of different banks. Misunderstanding of any item that was eventually ignored may lead to misunderstandings during the negotiations.
To prepare a complete documentation package. It’s necessary to clarify the paper directly during the first negotiations with a bank employee. The documents must be up-to-date, with reliable information. Credits confirming solvency should include data for the last 3 months of work.
To agree on the payment terms. A client who objectively assesses his financial capabilities will never lie about the fact that he can repay debts in a short time. This only causes suspicios of the bank. More open and detailed the borrower sets out his financial plans, more chances he has for the mortgage application approval and even for a couple of practical advice from the bank employee.
Following these simple rules, the approval of the housing loan in the Philippines will take no more than 7 days. If a bank employee asked for additional information, it should be provided immediately. The last step is drawing up a schedule of payments and signing a mortgage agreement. The registration of the housing loan takes no more than 30 days – from the moment of the bank selection till the pass of the keys to the new owner.
Written by Mikka Montero | Modified date: January 09, 2020