A Guide to Housing Loans in the Philippines
Let’s face it, not all of us have the extra moolah to buy a house or a condominium unit that we like. A majority of us, when we reach the point of actually wanting a place of our own, will come to a realization that you should’ve saved all those Starbucks budget for your very own personal living space.
Fear not, there are housing loans that can help you with purchasing your dream home.
1. Bank Loan
Banks will require a collateral and at this point, your house will be it. Requirements to avail of a bank loan may vary depending on the bank, your employment status (if you work here or abroad, self-employed or employed in a company), the purpose of your loan and what type of property you are buying.
To be able to start on a bank loan, consider the following:
- You are at least 21 years old but younger than 65 years old.
- You must be a regular employee of your company for at least 2 years with a monthly gross income of at least P30,000.
- If you own a business, it must at least be in operation for 2 years.
The loan amount depends on your paying capacity, the interest will cripple you, but you can pay for as long as 20 years.
2. In-House Financing
Developers also have a way of making sure you have an easy time paying for a unit you purchased from them. This also means that the buyers pay their monthly amortization directly to the developers. in-House Financing will require less paperwork, background check and is processed faster as opposed to bank loans. This time though, the interest rates will kill you. But then again, easier process and one step away to a new home!
Developers require the buyer to pay 10% if the project is pre-selling or 20%, the higher your down payment, the lower your balance and monthly amortization. If you pay for your down payment spot cash or as soon as the unit turnover you can receive a discount.
3. SSS (Social Security System)
The SSS housing loan can be used to construct a new house, purchase a new or existing house and/or lot, condominium unit or a townhouse.
Consider the following for getting an SSS Loan:
- Applicant must be an SSS member or an OFW not older than 60 years old upon application, those who are 60 years at the time of application will have a maximum loan term of 5 years.
- The member should have contributed for at least 36 months and 24 continuous contributions in the period prior to application.
- The borrower must also be up-to-date in the payment of their other SSS loans if any and was not previously granted final SSS benefits.
So while this loan is not good for senior citizens, the younger market can opt to pay the loan for as long as 30 years. (Make sure the house is as sturdy as your paying capacity!)
4. Pag-Ibig Loan
The Pag-IBIG housing loan can be used for home construction or repairs, buying a pre-owned house or a new house, condominium or townhouse and for home renovations.
Consider the following for getting a Pag-Ibig Loan:
- Applicant must be a Pag-IBIG member for at least 24 months and have no existing housing loan or any Pag-IBIG foreclosed property loan.
- The borrower’s monthly amortization must not exceed 35% of their total gross salary and must not be older than 60 years old upon application and 70 years old upon loan maturity.
Their interests are really low and most Filipinos opt for this loan.
Well, if this doesn’t excite you to start the process of buying your own place, I don’t know what will. Now that you know financial help is readily available for you, you are now closer to your dream house.