Financing of properties is now made easier these days, even you are based abroad. Banks in the Philippines now accept documents of those who worked abroad, provided, however, they are within the qualified age limit.
Below are some requirements that are needed when buying a home entered into financing.
Income Tax Return - photocopy
Employment Certificate - original
Bank Statements - photocopy
Birth or Marriage Certificate - photocopy
Passport - photocopy
2X2 Photo - original
There are normally banks that are automatically tied-up with developer and are sometimes called “in-house Bank Financing”. With this set up, the buyer doesn’t necessarily need to find his/her own bank and directly apply for a loan. Above requirements are just submitted to the developer, and developer is the one facilitating the papers in behalf of the buyer. This free up the buyer from the legwork needed in processing the papers. B
Standard rate is applied to all approved loan and takes effect during the time of loan approval. Rates in the Philippines vary from other countries. Philippine banks offer 5, 10, 15 years amortization. Some offers up to 20 years financing, depending on the age of the buyer.
With this set up, the developer actually is the one extending a loan to the buyer. Since developers are not financial institution and bear more risk in taking the liability of the buyer’s purchase, hence interest rate is higher. In-house financing is better suggested to those who cannot present the requirements mentioned above. These are the people who are contractual but financially qualified.
When buying a property under cash basis, above requirements are still asked but not mandatory. It is always better to enter on a cash purchase if you have the available funds. Cash purchase may be of the following set up.
Spot Cash - one time payment with discount
Deferred Cash – cash basis on a staggered payment
Pag-IBIG Housing Loan
|This housing loan program grants opportunities to Pag-IBIG Fund members to avail of housing loans to finance any one or a combination of the following:
- Purchase of a fully developed lot not exceeding 1,000 square meters, which should be within a residential area;
- Purchase of a residential house and lot, townhouse or condominium unit, inclusive of a parking slot, which may be:
- Old or brand new;
- A property mortgaged with the Fund; or
- An acquired asset, which is disposed of through sealed public bidding, negotiated sale, the Rent-to-Own Program, or the “Magaang Pabahay, Disenteng Buhay” Program.
- Construction or completion of a residential unit on a lot owned by the member;
- Home improvement, i.e. any alteration in an existing residential unit intended by a homeowner to be a permanent integral part thereof, which will enhance its durability and material value;
- Refinancing of an existing mortgage with an institution acceptable to the Fund, provided that:
The loan is not in default within 12 months prior to the date of application;
The said loan has a repayment history of at least two (2) years with the original mortgagee
- Combination of loan purposes, which shall be limited to the following:
- Purchase of a fully developed lot not exceeding 1,000 square meters and construction of a residential unit thereon;
- Purchase of a residential unit, whether old or new, with home improvement;
- Refinancing of an existing mortgage with home improvement;
- Refinancing of an existing mortgage, specifically a lot loan, with construction of a residential unit thereon
|A. Documentary Requirements
The Pro-forma Health Statement Form (Medical Questionnaire) is available at the Members Services Support Division-Servicing Department for NCR or at any Pag-IBIG Regional Branch or downloadable from the Pag-IBIG website, www.pagibigfund.gov.ph.
- Housing Loan Application with recent ID photos of borrower
- Membership Status Verification Slip
- Proof of Income
3.1 For Locally Employed, any of the following:
3.2 For Self-Employed/Other Sources of Income
- Notarized Certificate of Employment and Compensation (Pag-IBIG format)
- Notarized Certificate of Employment and Compensation (Employer’s format) and latest one (1) month payslip
- Income Tax Return/Certificate of Tax Withheld (BIR Form No. 2316) and latest one (1) month payslip
3.3 For Overseas Filipino Workers (OFWs), any of the following:
- ITR, Audited Financial Statements and Official Receipt of tax payment from bank supported with DTI Registration and Mayor’s Permit/Business Permit
- Commission Vouchers reflecting the issuer’s name and contact details (for the last 12 months)
- Bank Statements or passbook for the last 12 months (in case income is sourced from foreign remittances, pensions, etc.)
- Copy of Lease Contract and Tax Declaration (if income is derived from rental payments)
- Certified True Copy of Transport Franchise issued by appropriate government agency (LGU for tricycles, LTFRB for other Public Utility Vehicle or PUVs)
- Certificate of Engagement issued by owner of business
- Other document that would validate source of income
- Employment Contract (with English translation if in foreign language)
- Original Employer’s Certificate of Income (with English translation if in foreign language). If document submitted is photocopy, it shall be duly validated and certified/initialed by HDMF Information Officer assigned in the country where the member works
- Other Proofs of Income, whether original or photocopy, shall be duly validated and certified/initialed by HDMF Information Officer assigned in the country where the member works
- Photocopy (back-to-back) of one (1) valid ID of Principal Borrower and Spouse, Co-Borrower and Spouse, and Attorney-In-Fact, if applicable. The same ID must be presented during the conduct of borrower’s validation.
- Authorization to Conduct/Credit Background Investigation
- For OFW members, Special Power of Attorney notarized prior to date of departure or duly certified and authenticated by the Philippine Embassy or Consulate in the country where the member is staying, if abroad
- Insurance Coverage
- Health Statement Form (Medical Questionnaire)
- OFW members over 60 years old
- Loans over P2.0 M to P3.0 M and for borrowers aged up to 60 years old
- Health Statement Form (Medical Questionnaire) and Full Medical Examination
- Borrowers over 60 years old
- Marriage Contract (For all married borrower/s, co-borrower/s, spouse, family member/s included on the computation of aggregate income)
- Birth Certificate or any proof of relationship, if with co-borrower/s or family member/s included on the computation of aggregate income
For other financing question, email or phone us. Back to main page
Below are brief details of how to go about purchasing a home..
1.) It is important that you contact first a Sales Agent, someone who would personally attend to your need. You may now ask the Sales Agent of everything that you need to know about the property, pricing, computation and other things that you feel important to you.
2.) If you are based abroad, better send someone here (based in Manila or from other town) to inspect the site that you are interested in so you would have second opinion and first-hand report about the development. You may either ask them to contact us or ask us to contact them. A company provided vehicle shall be mobilized for them if they don’t have a car to use in visiting the development. Get the report from you representative and contact the Sales Agent if you are decided to proceed to get the unit.
3.) You will then be asked by your Sales Agent for the Reservation Fee of the said unit you are interested in to hold it and officially book it under your name. Sending of Reservation Fee can be done by either wiring your funds to international account of the owner/ developer or sending it to your representative and have them personally hand-over to us your Reservation Fee.
4.) Reservation Form will be sent to you afterwards via post mail or email. Fill up the Form and send it back to our Office together with your documents/requirements as listed below.
Married or Birth Certificate (photocopy)
Income Tax Return (photocopy)
Post dated checks
2x2 ID Picture
Other Identification (photocopy)
And other minor documents
5.) Your account shall then be processed and your Sales Agent will give you update on the development of your transaction and of the unit you purchase. Upon reaching the downpayment payment of the Contract Price, the document CONTRACT TO SELL shall then be prepared by our admin staff and a copy shall be sent to you via post mail. Affix your signature to all the documents and send it back to us for notarial by our legal department. A signed and notarized copy shall be sent to you once done and completed. This serves as your legal documents manifesting your ownership and a commitment by our office to deliver the said unit after completion of your payment obligation.
6.) The Sales Agent will contact you, from time to time, to inform you of the development. You may also take the initiative in contacting the Sales Agent for a question or concern.
For urgent reply on your question, please text me or email me.thanks
JOAN JOY ALTURA