What’s a nicer feeling than knowing you have a house to go home to? It’s always better to live in your own house than to live in someone else’s roof. Are you interested in applying for a housing loan? Keep reading, I’ll guide you how!
There are three most common home financing options in the Philippines; In-house financing, bank financing, SS housing loans and PAG-IBIG housing loan.
(a) IN-HOUSE FINANCING is a program usually offered by developers to buyers. This type of financing requires less paperwork, background check, and is processed faster. This will not require too many documents to prove your financial capacity.
Developers will only require buyers 10-20% down payment from the original price of the unit. The higher your down payment, the lower your balance and monthly amortization. However, in-house financing has higher interest rate compare to other housing loans.
- Certificate of Employment and Compensation
- Source of Income
- Bank Statement or remittance slip
- Posted date checks
Interest Rates: 14%-18%
Qualifications: An interested buyer who can afford the down payment and present required documents.
(b) BANK FINANCING has more competitive interest rates in the market. Most offers flexible housing loan options but requires more strict or rigid conditions such as higher income or down payment. Compared to in-house financing, bank financing requires more paperwork and strict background check and usually takes a delay in approval which can take as long as 90 days.
To check the requirements, please click the link on which bank you wanted to apply.
(c) SSS HOUSING LOAN offers loan for socialized and low-cost housing. It can be used to construct a new house, purchase a new or existing house/lot or a condominium. Interests for SSS loans are reviewed every 6 months and may be fixed for loans not exceeding 15 years but for those going beyond 15 years, they will be subjected for repricing every five years.
Click this link to see the qualifications and requirements through the official SSS Website
- Interest Rates: 8% to 11% per year (depends on the amount borrowed)
- Loan Amount: P400 000 – P2 000 000
- Loan Term 5 to 30 years
(d) PAG IBIG HOUSING LOAN is friendly for OFWs who would like to purchase their own dream home in the Philippines. The loan amounts offered depends on the capacity to repay and the need.
For Eligibility requirements, please see the official PAG IBIG website
Here are the 6 steps to avail PAG IBIG Housing Loan
- Interest rate: 8% to 11.5%
- Loan Amount: 80% property price
- Loan Term: 20 years, 15 years for OFWs
Owning a house requires financial responsibility and planning. It is important to put many factors into consideration before going for a housing loan. First, consider your income. Can you pay the amount required? Will you be able to secure you can pay for a long term? Second, choose your best option. Options you think won’t disappoint you later on. Some buyers only turn to in-house financing because they are denied bank financing. Again, always choose the best option and don’t put yourself in a debt.