Bank Financing 101

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Bank Financing 101

Most home buyers here in the Philippines cannot afford to pay off the property in cold cash. Imagine buying a condominium worth P2.4Million pesos and paying it all in one time. It would be too difficult! Only few individuals can afford to do this and even those people with enough money would like to leverage and extend the terms so that they can use their money somewhere else (like business and other investments).

This is the reason why housing loans and financing options are available to public in order for the people to own a house without having to shell out its total amount. This is one reason why real estate is a really good investment. There are properties out in the market that you can already move-in for as low as 5% of its total contract price! Such great leverage that you can already use the property with just a small amount of cash out.

While most of the Filipino employees are members of the Home Development Mutual Fund (HDMF), not all properties can be financed thru Pag-IBIG Financing. One can only borrow up to a maximum of P3Million using this fund. In our personal opinion at DRIVEN Marketing Group, a buyer who intends to borrow P2Million and more for a housing loan can already consider going thru Bank Financing since the interest rate for Pag-IBIG Housing Loan is already at 11.5% per year for loans P2,000,001-P3,000,000. This means that the bank interest rates are almost the same (some banks might offer lower interest rates) with Pag-IBIG Financing interest rates for this loan bracket.

Because of the growing need for housing loans, most buyers are considering to get a loan from a bank to finance their homes. Here we share the basic information that you need to know with regarding to Bank Financing Options.

The Bank of the Philippine Islands (BPI) launched a program to cater this need.

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