Most real estate properties these days are quite costly. Thus, the majority of real estate buyers cannot afford to pay the full amount on the property that they wanted to buy. Yet still, part of developers marketing plan is to offer great discounts to buyer who can pay in SPOT Cash. But to cater for buyers who do not want to shell-out money urgently, developers introduce different payment scheme that the buyers can choose from.
There are three common housing financing options that are being offered by Developers to individual who wishes to own property: Bank Financing, In-house Financing, and Pag-IBIG Financing.
Before we discuss the three options scheme, we need to consider the first step to do in order for the financing institution to accept your loan. One primary consideration is that buyers must be able to pay their Equity first. The usual equity ranges from 10% -30% of the total package price of the property. Meaning to say that the buyer must be able to pay at least 10%-30% of the property amount before any financing institutions accept the loan. There are developers who require a spot equity payment, but there are some who still offer installment payment on equity.
What is Bank Financing for housing?
Bank Financing is a housing loan that you make from the bank in order to pay your property remaining balance. This includes payment of principal amount and the interest rate.
In simple term, the bank will pay your remaining balance and in return you pay the bank at the term options that was offered and accepted by you. The payment term usually ranges from 5 years to 20 years.
In selecting a bank that would cater your purchases always look around and compare interest rate and deals. There are lots of bank now who offers lower interest rate for short term loan, however might rise as years goes by. Do not just be fooled by one offer, do basic Math so that you will not be into a situation in which you are going to pay a huge interest rate that would lead to higher monthly amortization.
In house financing is a payment option offered by the developer of the real estate property. If you want a lesser hassle task especially in the documentation, then In house financing would be an option. Another reason why choose In-house financing is the Buyer’s age. Other financing company has specific age limits before accepting the loan. However, this financing term usually has the highest interest rates among other housing financing options. The interest rate usually ranges from 12% – 18%.
Due to higher interest rate, others are discouraged to pursue this option. But don’t take it as to all developers because there are some developers who offers promotional lesser interest rate on in-house financing scheme as part of there marketing deals. It is still better to compare the sample payment scheme option before concluding.
Pag-IBIG financing or Home Development Mutual Fund (HDMF) is a very known housing financing options in the Philippines. Most employed individuals are mandated to remit their share automatically to Pag-ibig, thus make them qualified for a housing loan. Actually, Pag-Ibig has lots of products to offer and housing loan is just a part of it.
Before you can have a loan in Pag-ibig you must attend its Seminar first. Davao City Seminar at Pag-IBIG office at Pryce Tower, JP Laurel Ave., Bajada Davao City is usually conducted every Saturday at 9:00AM.
One of the advantages in choosing Pag-ibig financing is its low interest rate especially if you are going to purchase Socialize housing or Low Cost Housing. Price ranges from P400,000.00 to P800,000.00
For more details in applying Pag-ibig Housing Loan, please click this link: How to apply Pag-IBIG Housing Loan in Davao City…
Therefore, any housing financing options might be applicable to you. The best thing to consider in choosing which options suitable for you is to carefully compare the most advantageous offer.