Many people think of “housing loan” only as a way to borrow money for the purpose of buying a new house.
In a blog post, the MoneyMax website gives us a clearer understanding of what a housing loan is, how it works, who is eligible for such a loan, and many other basic details.
To begin with, a housing loan is a means of borrowing needed funds for the following purposes:
- Purchasing a fully developed lot
- Purchasing a residential house and lot, a townhouse, or a condominium unit
- Construction or completion of a residential unit located on a member-owned lot
- Improvement or renovation of an existing residential property
- Refinancing of an existing housing loan/mortgage
To apply for a housing loan in the Philippines, you should be between the ages of 21 to 65 years old upon loan maturity. Of course, you must be a Philippine resident. In case you are working abroad as an OFW, you should obtain a special power of attorney as well as a POEA-approved contract or certificate of employment (COE). Some banks in the country allow foreigners but they should be able to meet VISA requirements and provide an Alien Certificate of Registration.
Naturally, the bank or lender will take the time to evaluate your capability to repay the amount based on your age, income, spouse’s income, age, number of dependants, stability and continuity of occupation, assets and liabilities, credit standing, and other qualifications.
As far as required documents go, you will be asked to submit various documents such as valid IDs such as driver’s license, passport, SSS, or postal for verifying your identity. Moreover, you will also need collateral documents such as TCT (Transfer Certificate of Title) or CCT (Condominium Certificate of Title), lot plan and vicinity map certified by a Geodetic Engineer, as well as Master Deed of Declaration of Restrictions (for condominiums).
SUGGESTED POST : PAG IBIG HOUSING LOAN REQUIREMENTS
As mentioned above, you will need to prove your ability to pay and this means you’ll need to show proof of employment or income documents such as ITR (Income Tax Return), payslips from the last three months, or a COE with salary breakdown.
Regarding the maximum amount you’re allowed to borrow, that will usually differ from bank to bank but for the most part, it will depend on your capacity to repay.
Keep checking with us here at PinoyJuander for more helpful topics!