Finally Thinking of Buying Your Dream Home?
When we finally decide to buy real property, one of the most important things we consider is our capacity to pay. And most of us, if not all, tend to consider applying for a housing loan. Some of us prefer PAGIBIG housing loan because of its low interest rates and lower required monthly income while others prefer bank financing. South Forbes has shared this info on bank financing in the Philippines which you will find useful in making your final decision.
Margin of Finance
The margin of financing, also known as the loan-to-value ratio, refers to the amount that a client can borrow. Banks in the Philippines base the amount on the age and income bracket of the applicant, the property type and the location and the current value of the property on the market. The margin is typically 80%. So if you are going to apply for a housing loan to finance a P1,000,000 housing in a key location in Manila you are eligible for a loan amounting to P800,000, and you’ll have to put up the remaining P200,000 yourself as a down payment.
Fees and Charges
Fees and charges differ from bank to bank, but some common fees and charges you would expect to incur include
Appraisal fee;
Registration expenses;
Documentary Stamp Tax which is P1.00 for every P200 of the loan amount;
Mortgage Redemption insurance; and
Handling and notarial fees
Early Termination Penalty
Some mortgage lenders may apply an early termination penalty if the loan is paid off in part or in full within a specified time period including if you refinance the loan with another lender. This specified time period where you are liable to pay an early termination penalty is called lock-in period. Depending on the term and amount of your loan, this change can be quite significant (Source: South Forbes, N.D.)
I hope this information helps you when you finally decide to invest on your dream home.
Like/Follow us on
https://www.facebook.com/TPablico.FuerteRealGroupLuzonPhilippines
tesspablico_realestate on Instagram