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Best Home Loans to apply for in PH

Many Filipinos dream of purchasing their own houses. A home you can call your own is proof of all your years of hard work and sacrifice. Unfortunately, not everyone has the financial means to pay for their dream house right away. Not to mention, simply saving up money can take many years. There may not even be not enough time to live in the home you have saved for.

As a solution to this, Filipinos use home loans. In addition, there is a variety of financial institutions that offer customizable programs to allow you to own a home easily.

However, the financial options available can be overwhelming. So, before you choose one, it is essential to know that buying a home can affect your life savings and your financial status in the future.

Here are the best home loans to apply for in the Philippines:

  1. Banco de Oro

BDO features a minimum loan amount of Php 500,000 for House and Lot. Meanwhile, if you opt to fund a lot alone, BDO can let you borrow Php 300,000. The maximum loan amount for this bank is 80% of the property’s appraised value. The loan term can reach up to 20 years, depending on your needs.

Interest Rates:

6.25% for one to two years

6.75% fixed for three years

7.25% fixed for four to five years

The best part of using BDO Home Loan is the quick approval time. You can process it in a maximum of five banking days. You can even use the money to purchase a condominium unit or for home construction or renovation.

  1. Bank of the Philippine Islands

BPI gives you a minimum loan amount of Php 400,000 and a maximum loan amount of 70% for appraised house and lot value. Meanwhile, if it is for a vacant lot or a residential condominium, they can offer you 60% of the appraised value. Loan terms can be up to 25 years for a house and lot and ten years for a vacant lot or residential condominium.

Interest rates:

6.25% fixed for one or two year/s

6.75% fixed for three years

7.25% fixed for four or five years

9.50% fixed for ten years

10.50% fixed for 15 years

12% fixed for 20 years

There is no minimum income required to apply in BPI. Hence, this option is suitable for applicants with conservative earnings and buying patterns.

  1. China Bank

China Bank offers a similar rate to most banks with a minimum loan amount of Php 500,000. However, it has a stable interest rate of 5.75%. This bank employed different loan terms for other properties. Condominium unit buyers can have up to 10 years loan term, 15 years for vacant lot buyers, and 25 years for house and lot buyers.

China Bank boasts a low insurance premium because it uses its subsidiary, the China Bank Insurance Brokers, Inc. It also has easy repayment via automatic debit arrangement and no hidden charges.

Interest China Bank borrowers must have a minimum monthly income of Php 50,000 (for Metro Manila and Cebu) and Php 35,000 (for other provinces).

  1. Metro Bank

In Metro Bank, you can have a minimum loan amount of Php 500,000 and a maximum loan amount of up to 90% of the property’s net selling price. The loan term can reach up to 25 years.

Interest Rates:

5.75% fixed for one to three years

6.75 fixed for four to five years

Metro Bank Home Loan applicants must have a minimum monthly income of Php 40,000 and continuous employment for at least two years. Meanwhile, self-employed individuals must have an earning of at least $1,000. Self-employed applicants must also show a six-month bank state with a certification of “No overdraft charges.”

  1. Security Bank

Security Bank allows borrowers to loan a minimum amount of Php 1 million. Similar to BDO, Security Bank gives 80% of the property’s appraised value as the maximum loan amount.

Interest Rates:

6.25% fixed for one to two years

6.75 fixed for five years

7.75 fixed for ten years

Those interested in applying to Security Bank Home Loan must have a combined monthly income of Php 50,000 and must be in continuous employment for at least two years.

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