Do you want to purchase a new home, but don’t have the funds to do so? Or maybe you’re looking to upgrade your current home, but don’t have the extra cash on hand. If this is the case, you may be interested in obtaining a housing loan or chattel mortgage.
A housing loan allows you to borrow money in order to purchase a house. A chattel mortgage is allows you to borrow money in order to purchase property that isn’t classified as real estate, such as a car or boat. Both of these types of loans can help you achieve your dream of owning a home or property.
What is a mortgage in the Philippines?
A mortgage helps people purchase a home. It is also known as home loan, chattel loan or real estate mortgage. The home is used as collateral, which means that if the borrower defaults, the lender can foreclose on the home. Mortgages are typically paid back over a period of 15 to 30 years, and they usually have a fixed interest rate.
This can be beneficial for borrowers because it allows them to purchase a home without having to pay the entire purchase price upfront. However, it is important to remember that a mortgage is a major financial responsibility, and borrowers should only take out a mortgage if they are confident that they will be able to make the required monthly payments.
In the Philippines, mortgages are typically used to buy homes, although they can also be used to finance other types of property, such as land or commercial buildings.
Mortgages work by allowing borrowers to spread the cost of the loan over a period of time, usually several years. This means that they can afford to make monthly payments, which makes them more affordable than other types of loans.
Housing Loan Program Philippines
A house loan program is a government-sponsored initiative that provides affordable financing for families who wish to purchase a home. Although the specifics of these programs vary from country to country, they all share the same goal of making homeownership more accessible to low- and middle-income earners.
In many cases, house loan programs offer below-market interest rates and down payment assistance, which can make purchasing a home more affordable for families who might otherwise be priced out of the market.
In addition, these home loan programs often come with additional protections for borrowers, such as income-based repayment plans or mortgage insurance. As a result, housing loan programs can play a vital role in helping families realize the dream of homeownership.
There are a number of different housing loan programs available in the Philippines. These programs offer different interest rates and terms, so it is important to compare them before choosing one. Our partners offer a number of different housing loan programs, which you can find more information about on our website.
1. Pag-IBIG Fund: The Pag-IBIG Fund is a government-sponsored housing loan program that offers financing for the purchase of both new and pre-owned homes. Pag-IBIG offers the following terms
- Interest rate: 5.75% – 9.875% APR
- Term: Up to 30 years
- Lending limit: 450,000 PHP – 6 million PHP
2. Bank of the Philippine Islands: The Bank of the Philippine Islands offers a housing loan program with interest rates starting at 5.99%. Borrowers can get up to 80% of the value of the property, and loans are typically paid back over a period of 20 to 25 years.
- Interest rate: 6.25% – 8% APR
- Term: Up to 20 years
- Lending limit: Upto 80% of property value
3. RCBC: RCBC offers a housing loan program with interest rates starting at 6.50%. Borrowers can get up to 80% of the value of the property, and loans are typically paid back over a period of 15 to 20 years.
- Interest rate: 6.25% – 10.5% APR
- Term: Up to 20 years
- Lending limit: Upto 80% of property value
4. Maybank: Maybank offers a housing loan program with interest rates starting at 6.25%. Borrowers can get up to 80% of the value of the property, and loans are typically paid back over a period of 20 to 30 years.
- Interest rate: 6% – 7.5% APR
- Term: Up to 20 years
- Lending limit: Upto 80% of property value
5. MetroBank: MetroBank offers a housing loan program with interest rates starting at 6.50%. Borrowers can get up to 80% of the value of the property, and loans are typically paid back over a period of 15 to 20 years.
- Interest rate: 7.6% – 8.4% APR
- Term: Up to 25 years
- Lending limit: Upto 80% of property value
If interested you can use the Upfinance housing loan calculator Philippines to get tentative rates. Important to remember that these rates are specific to the Philippines.
If interested you can use the Upfinance home loan calculator Philippines to get tentative rates. Important to remember that these rates are specific to the Philippines.
What is the interest rate for a mortgage?
The interest rate for a mortgage depends on a number of factors, including the type of loan, mortgage payable, and the term. The interest rate can also be affected by the borrower’s credit history and financial situation.
1. Pag-IBIG Fund: 5.75% – 9.875% APR
2. CTBC Bank: 5.75% – 7.6%
3. UCPB: 6% – 7.5%
4. Maybank: 6% – 7.5% APR
5. Bank of the Philippine Islands: 6.25% – 8% APR
6. RCBC: 6.5% – 10.5% APR
7. MetroBank: 7.6% – 8.4% APR
8. Prestige Bank: Starting from 9% APR
9. Producers Bank: 11% – 12%
10. Mindanao Consolidated Cooperative Bank: 12% – 16%
How to apply for a mortgage?
The users should always carry out due diligence to determine which lender is suitable for them. For this they can use the mortgage calculator on UpFinance to get tentative rates. Once the lenders have been shortlisted, they can be approached.
The process of applying for a mortgage loan is relatively simple.
First, the borrower must fill out an application form and submit it to the lender. The lender will then assess the borrower’s financial situation and credit history to determine whether they are eligible. If the borrower is approved, the lender will provide them with a loan agreement, which outlines the terms. The borrower will then have to sign the agreement and make a down payment on the property.
Some of the common housing loan requirements are
- Identity documents
- Photographs
- Valid mobile phone number
- Proof of residence
- Proof of income
- Proof of ownership(of collateral)
Another way to apply is to apply through the online application option on Upfinance on each lenders page.
Mortgage Redemption Insurance
Mortgage redemption insurance is a type of insurance that pays off your mortgage if you die before it is paid off. This type of insurance can give peace of mind to borrowers who are worried about their family’s financial security in the event of their death.
Mortgage redemption insurance is not required by law, but some lenders may require it as a condition. This type of insurance can be expensive, so it is important to compare rates and coverage before buying a policy.
If interested you can use the Upfinance home loan calculator Philippines to get tentative rates. Important to remember that these rates are specific to the Philippines.
Mortgage Repurchase insurance
Mortgage repurchase insurance is a type of insurance that protects lenders against losses that may occur when a borrower defaults on their mortgage. The insurance policy will pay out a lump sum to the lender if the borrower defaults, which can help to cover the cost of repurchasing the property.
However, it is important to note that this type of insurance does not cover all types of defaults, such as those caused by fraud or misrepresentation. As such, lenders should carefully consider whether mortgage repurchase insurance is right for their needs.
Mortgage with UpFinance
UpFinance is a website that helps borrowers find the best home loan, chattel mortgage, real estate loan and other financial services for their needs. We work with a number of different lenders to offer a wide range of mortgage products.
UpFinance has got mortgage loan calculator or housing loan calculator on the page of each lender. These home loan calculators can allow users to get tentative rates before applying. This is a very useful tool that can help users shortlist the lenders that they want to approach.
Our goal is to help borrowers find the loan that best suits their needs and budget. We offer a free, step-by-step guide that walks borrowers through the process of applying for a mortgage. We also provide a list of documents that are required for the application process.
