Buying a house is the single most expensive purchase most Filipinos would make. This is why applying for a mortgage is a serious financial commitment. It requires a lot of consideration and contemplation, ensuring you’re ready to manage the biggest debt you might even have and avoid losing your home as collateral.
To advance your knowledge of housing loans in the Philippines, know the answers to the most asked questions about them:
What’s the Maximum Loanable Amount?
All Lancaster reviews from websites such as Land Estimate would say that it would depend on the lender. Pag-IBIG might let you borrow multiple loans not exceeding six million pesos. Most banks allow a minimum of 500,000 pesos, while others approve at least 300,000 or one million pesos worth of loans.
Is Down Payment Always a Requirement?
Not necessarily, but it’s generally advisable. Apart from Pag-IBIG, almost all other lenders wouldn’t loan you 100% of the property’s purchase price. In other words, you have to pay the portion your lender wouldn’t let you borrow out of your pocket.
While it might require you to wait until you’ve saved enough money to cover the down payments, putting some money down is beneficial. The larger your down payments are, the more you can save on interest and faster you can build equity on your property.
Why Is There Age Eligibility?
In the Philippines, the retirement age is 60 years old. While there’s now a law the prohibits forced employee retirement, many Filipinos tend to retire upon reaching this age. Even if retired individuals still receive monthly pensions, there’s a great chance that retirement would affect the borrower’s capacity to pay.
This is why most lenders approve loan applicants who won’t be over 60 years when the loan matures.
Is a Checking Account Necessary?
When applying for bank loans, a savings account is usually the only thing you need to apply. Other lenders usually like to accept post-dated checks, but arranging automatic debit with your bank is common practice too. In short, a checking account is generally not a prerequisite for housing loan applications.
You might apply for a housing loan once in your lifetime, so do it right. As much as the thought of home ownership is exciting, don’t rush into a decision to choose the most favorable housing loan for you.