Comparing rates between financial institutions can be a challenge, but knowing which one has the most favorable one can make a huge difference. Three of the most common home financing options in the Philippines are In-house financing (from developers), Bank financing, and Pag-IBIG housing loan.
Housing loan program usually offered by developers to buyers who wish to buy a house through a series of installments. The house loan will be under the developer, which means that buyers only deal with the developer. There are minimal documents required, but expect a bigger down payment and a higher interest rate compared to what other home loan sources offer.
Who can qualify for In-house Financing?
- Homebuyers who can’t provide proof of income or documents
- Homebuyers with bad credit record or on-going legal cases
- Homebuyers who want easy requirements
Commercial banks have some of the most competitive interest rates in the market. Offering flexible housing loan options, banks require somewhat more strict or rigid requirement and higher income requirement.
Who can qualify for Bank Financing?
- Homebuyers with good credit record or no ongoing legal cases.
- Homebuyers with regular work for 2yrs.
- Security Bank
- East West Bank
How long is the loan approval?
- Loan approval usually takes 2-3months to be processed.
Being a Pag-IBIG Fund member allows you to avail of their Pag-IBIG housing loan. With their program, you can purchase a residential house and lot, buy a fully developed lot not exceeding 1,000 sqm, have a residential unit constructed on a lot that you own, and purchase a townhouse or condominium unit that includes a parking slot.
Pag-IBIG Financing is only offered for selected Diana and Catherine Houses only.
Who can qualify for Pag-IBIG Financing?
- Homebuyers with regular work for atleast 2yrs.
- Active Pag-IBIG member of atleast 2yrs.
I have a Multi-purpose / Salary Loan, am i still qualified?
- You can still qualify as long as your payment for the salary or multi-purpose loan is updated.