Getting a house here in the Philippines may seem tedious and a headache because of the many documents and the processes that you have to remember and get ready for, but to be frank, the only reason why it seems difficult is due to the long line of people during office hours, the hot, humid weather in cities where the offices involved are located, and the heavy traffic.
For those who don’t have the luxury of paying for a new home upfront, then getting a housing loan is always the first step to owning a house here in the Philippines. In fact, a lot of up and coming single people who work in call centers and other BPO services are now investing in housing loans for the chance to own an apartment or even a condominium.
Because there are so many real estate corporations that allow government housing loans, it’s already possible to own that dream house of years while paying for it for a good price every month. The question here is, how do you exactly do that?
Many real estate companies offer promotions and help to get a loan, once you have find your perfect home through Persquare, don’t forget to ask the realtor about the loans.
Applying for a housing loan should be easy if you have the necessary requirements. Every real estate corporation have different requirements for housing loan applications, but the requirements you need the most are the following:
Eligibility Requirements:
- Filipino citizen or foreigner (need Visa requirements)
- At least 21 years old and not over 65 years old
- Must have stable source of income from business or employment
- If employed, must be 2 years with current company
- If self-employed, must have 2 consecutive profitable or successful years of operation
- Minimum gross income stated by bank or real estate company
Most banks also require document from the housing loan applicant. Most banks will ask for the following documents for a housing loan:
- Signed application form
- Clear copy of 1 or 2 valid government ID’s
- Marriage contract for married applicants
- For expatriates or foreigners, a photocopy of Alien Certificate of Registration (ACR) showing that their VISA status as permanent immigrants or Alien Employment Permit (AEP). VISA ID is also acceptable.
- Latest Income Tax Return (ITR)
- Latest Certificate of Employment or latest pay slips for 3 months
- Business Registration Papers for self-employed housing loan applicants, along with latest Audited
Financial Statements for 2 years and 3 months consecutive Bank Statements.
The documents are then reviewed by the bank’s credit department and once everything is checked and there are no problems with the applicant’s eligibility requirements, then the bank will notify the applicant that his/her housing loan application is approved.
The timetable as to how long the application will be approved or not depends entirely on which bank you’re applying for the housing loan. For banks, the longest timetable is at 15 working days while the shortest is at 4 working days. Lending institutions, such as PAG-IBIG and Social Security System (SSS) can go from 5 to 7 business days.
So how does the whole housing loan process start? As we’ve mentioned earlier, different banks have different timetables and processes, but just to make it simple, it all boils down to four phases:
1. Application Phase: This is the part where you fill the application form for the housing loan and specify the terms and conditions stated in the document. The application phase also starts when you start securing and submitting the requirements needed for the housing loan.
2. Processing Phase: This is when the bank will check and see if you’re qualified for the housing loan. This is called prequalification. Someone from the bank or lending institution will give you a call to check your financial capacity. You can expect questions about your assets, your monthly income, and your liabilities when a representative from the bank calls you.
The bank will also check on your co-maker to see if he/she has the ability to pay should you fail to do so.
The processing phase also includes getting preapproved. Getting preapproved means you need to submit the right housing loan documents, your bank statements, employment information, your latest income tax return, and other important documents. This will show the bank that you do have the capacity to pay for the housing loan every month.
3. Annotation Phase: If you have passed the processing phase for your housing loan, your bank will call you to inform you that your housing loan is approved. However, the borrowers are asked to sign a loan covenant and to pay for the Pay Processing Fee for REM.
4. Release Phase: Once the bank approves your housing loan, the money is then released to you.
Now take note that some banks may have different processes when it comes to housing loans. Check the process at Security Bank and other major banks in the Philippines. Whatever bank you choose, always remember to learn more about their process on housing loans.