APPLICATION

Selecting the bank for your loan is an important step mainly for the purpose of comparison. It is best to submit your application to as many banks as possible.

COLLATERAL

Banks require a collateral to offer the loan. Usually the property itself is the collateral. Borrower must provide proof of ownership or sale documents for the property.

ELIGIBILITY

The bank will check your capacity to pay or capacity to earn by going through your income documents, bank statements, monthly expenditures, etc.

APPRAISAL

Banks appraise the property to be loaned. An appraiser will physically visit the property. Be ready to accomodate the appraiser and answer his questions.

APPROVAL

Banks will send a letter or email to inform you of your approved rate. At this stage bank will provide letter of guarantee for you to present to developer if necessary.

PAYMENT

Before a loan is finalized the borrower will have to pay for fees such as Appraisal Fee, Notarial Fee, Transfer Fee, etc. Titles are then annotated in favor of bank.

COLLATERAL

Vacant Lot, House and Lot, Townhouse, Condominium, Apartment, Duplex, etc.

COLLATERAL REQUIREMENTS

Title
Tax Declaration
Real Estate Tax Payment Receipts
Tax Clearance
Master Deed of Restriction for Condominiums
Certificate of Management for Condominiums

ELIGIBILITY

Employees, Self-employed, Companies, OFW, Foreigners
At least 21 Years old.
With stable source of income from employment or business.
At least 2 years with present employment or in business operation.
Not 65 upon loan maturity.

REQUIREMENTS FOR EMPLOYED

Valid Government IDs
Marriage Contract or Certificate of No Marriage
Pay slips / Proof of Income
Certificate of Employment with Compensation, Tenure and Position.
Name, Address and Phone Number of Company.
BIR Form or Income Tax
Personal Bank Statements
Other Proof of Asset ex. Life Insurance, Stocks Certificate, Car ORCR

REQUIREMENTS FOR BUSINESS

DTI/SEC Certificate
Articles of Incorporation
General Information Sheet
Valid Government IDs of Board of Directors and Corporate Secretary
BIR Form or Income Tax
Trade References
Bank Statements

OTHER REQUIREMENTS

Mortgage Redemption Insurance
Fire Insurance
Appraisal Fee
Transfer Fees if property is not yet transferred to the borrower’s name.

TERM OF LOAN

Max 10 Years to Pay for Vacant Lot
Max 15 Years to Pay for Condominium Unit
Max 20 Years to Pay for House and Lot
*These values will depend on Banks

LOANABLE AMOUNT

70% of Appraised Value for Vacant Lot
70% of Appraised Value for Condominiums
80% of Appraised Value for House and Lot
*These values will depend on Banks

CREDIT RATIO

Max Monthly Amortization : 40% of Gross Monthly Income
Example:
Monthly Salary = 60,000
Max Monthly Amortization allowed : 24,000
*These values will depend on Banks

MONTHLY RATE

Monthly Rate = PMT(Rate;Years;Price)
Example:
Rate : 8%, Years : 5, Price : 2,000,000
PMT(8%;5;2000000) = 50,0912 To be paid monthly

Fixed Period | Rate
1 Year | 5-6%
2-5 Years | 7-8%
6-10 Years | 9-10%
11-20 Years | 11-12%

*These values will depend on Banks