All You Need to Know About Applying for Housing Loans
2023 Jan 12 | by Apple Barretto
It’s a goal for many families to own a house in a master-planned community — especially a safe and sustainable one. However, the financial journey for this dream is not an easy one. To help you, this blog article goes through all the important information you need to know in applying for a house loan.
There are many housing loans available in the Philippines. From banks to government agencies, one of these options will help you obtain your dream home easier and faster. Keep reading to learn more!
How to Apply for a House Loan in the Philippines?
Acquiring a housing loan in the Philippines requires an individual to reach an agreement with the lender whether it be an in-house company or an agency. This agreement contains the details on how you will complete the loan payment over time.
Just like other loans, payments can be done every month until the payment is complete including interest. If you are applying for a loan for the first time, you must understand that a big portion of this payment is for the interest. The interest on a loan is based on how much you will be paying monthly.
Eligibility for a Housing Loan
It can be quite intimidating to apply for a housing loan in the Philippines, but any Filipino can do it as long as they are eligible for it. Requirements of agencies and banks vary, but all groups look for similar factors when it comes to eligibility.
How much you earn plays the biggest factor in a housing loan. This is the basis in approving your housing loan. If you are married, you can apply for a housing loan with your spouse. Their income is also subjected to evaluation.
When applying for a loan, you must be employed. There is usually a minimum of 2 years of employment. If you’re a business owner, they may ask you for more information regarding your business like taxes, income, business permits, and other relevant documents.
Your age helps agencies determine the maximum length of your loan.
Many agencies ask you for your dependents when applying for a housing loan. This is one of the factors they will check if you can pay for a housing loan.
There are many sources for credit history like bank statements, credit cards, and other collection agencies. If you’re an individual who pays your bill diligently, you will have better chances of applying for a housing loan.
Types of Housing Loans Available in the Philippines
For Filipinos, there are many options available for housing loans. It’s best to do your research to see which agency works best for you and your needs. Here is an overview of the different types of loans you can get in the country.
Most banks around the Philippines offer housing loans to their loyal customers—such as BPI or BDO. However, the amount of the loan and the term differ from bank to bank. The downside to this is that there is a very meticulous application process.
PAG-IBIG Housing Loan
PAG-IBIG is a government agency that was created to help low to mid-income Filipino families. There are many affordable housing loan options available here, including a rent-to-own payment agreement.
When applying for a loan here, you can expect lower and inexpensive interest rates. However, this is only available to PAG-IBIG members with at least 24 months of monthly contributions. The maximum loan amount available is Php 6,000,000.
Another government agency, SSS offers many forms of financial assistance for Filipinos and their families. Included in their services are housing loans and repairs. It’s possible to get this loan to buy a lot, a townhouse, an apartment, and a condominium.
Steps to Ensure That Your Housing Loan Gets Approved
You may not have control over the approval of various agencies, but there are ways for you to ensure that you can get your housing loan approved.
- Ensure that you are qualified for the loan. With any agency or bank you apply to, make sure you are a fit for all their requirements. The most important one would be age, between 21 to 65 years old. In government agencies, you must have made 24 months’ worth of contributions.
- Make sure you don’t have any ongoing payments for your credit cards and other debts. For a housing loan application, you get a higher credit score if all debts are paid off.
- Pay your bills on time. These include your internet, electric, and water bills. Many of these corporations do a comprehensive background check during the application period to see if you can pay bills on time.
- Have a steady source of income. When applying for your loan, you must already know that it’s a big financial responsibility. Your salary must be enough to cover both its payment and your monthly expenses.
That was our quick guide on how to apply for a house loan in the Philippines.
To own your dream home is a big financial responsibility, but if you’re ready to make the investment, then be sure to look through all these points to make sure you’re qualified for one!
At Pueblo de Oro, you can buy a house in one of our private, master-planned communities with either a PAG-IBIG or bank financing loan. You can own a new home for as low as 10% equity of the selling price for up to 36 months in monthly installments.