The government announced that Enhanced Community Quarantine would remain in place until at least May 15 in Metro Manila and several other parts of the Philippines. This will see the grace period for payment of residential loans extended as well. Residential and commercial rents are also covered by a separate declaration.
Some banks are offering more assistance than those prescribed by the 30-day grace period, but these can vary. You can speak to your financial institution to learn more. If you want to know about the grace period for payment of residential loans in the Philippines, here are the answers to a few key questions.
What laws cover the grace period for payment of residential loans in the Philippines?
The information can be found in the Bayanihan Act which was issued by the Department of Finance. The grace period for payment of residential loans in the Philippines went into effect on April 2 and will continue until the ECQ period is lifted.
Who’s covered?
Anyone with a loan for a condo unit, house and lot or lot is eligible.
Are there any additional charges/fees?
No, banks are forbidden from charging the loan holder any fees or penalties. Adding interest to the delayed payment is also not allowed.
When are payments due?
You have 30 days from once the ECQ is lifted to complete scheduled payments. However, with the ECQ having been extended twice, there remain some unanswered questions as to how exactly this will work since some borrowers will have missed multiple loan payments. Many banks are working on finding solutions for clients and it is strongly advised you speak with them directly for additional information.
How do the extensions to the ECQ impact loan repayments?
As mentioned in the previous question, no one is certain at the moment. Finance Assistant Secretary Tony Lambino told CNN Philippines there are provisions in the law that allow for adjustments.
What about loans under Pag-IBIG?
Those with a Pag-IBIG home loan have had payments postponed until June 15.
The Chamber of Real Estate & Builders Association has the full order on their Facebook page. Click here to read it.
