A mortgage is a type of loan that you can get from a bank or a private lender to buy a house or an immovable property. The property is then titled under the name of the bank or the lender and will be used as collateral for the loan. And if you are unable to make the payments on time, the bank or the lender can repossess your home or the property.
Mortgages are typically paid back over 15 to 30 years in monthly payments, although you can also pay them off earlier. The monthly mortgage payment is determined based on the terms of the mortgage contract given by the lender and signed by you. This contract includes the size of your loan, the interest rate, and the agreement. The higher your loan is, the higher your monthly mortgage payments.
In the Philippines, local and global banks offer a wide variety of mortgage products that you can choose from including fixed and variable-rate mortgages. So, make sure to check what bank and product suit your situation and needs the best. Fortunately, looking for the perfect mortgage bank or lender for our family is now easier with UpFinance.
Housing loan program in the Philippines
Here in the Philippines, Filipinos have two options where they can get their mortgage or housing loan – through public or private programs. Housing loan public programs are offered in the form of PAG-IBIG while private housing loan programs are through banks and private lender companies.
Using UpFinance, you can now efficiently find the most recommended bank and company lenders to get your mortgage loan or housing loan program here in the Philippines. Some of our partner banks that offer this type of loan are:
PAG-IBIG Fund
- interest rates – 5.75% – 9.875% APR
- loan term up to 30 years
- Minimum loan amount: – 450 000 PHP
- Maximum loan amount: – up to 6 000 000 PHP
BPI
- interest rates – 6,25% – 8% APR
- loan term up to 20 years
- Maximum loan amount: – up to 80% of the appraised value
RCBC
- interest rates – 6,5% – 10.5% APR
- loan term up to 20 years
- Minimum loan amount: – 300 000 PHP
- Maximum loan amount: – up to 80% of the appraised value
Maybank
- interest rates – 6% – 7.5% APR
- loan term up to 20 years
- Minimum loan amount: – 500 000 PHP
- Maximum loan amount: – up to 80% of the appraised value
Metrobank
- interest rates – 7.6% – 8.4% APR
- loan term up to 25 years
- Minimum loan amount: – 500 000 PHP
- Maximum loan amount: – up to 80% of the appraised value
CTBC BANK
- interest rates – 5.75% – 7.6% APR
- loan term up to 20 years
- Minimum loan amount: – 500 000 PHP
- Maximum loan amount: – 25 000 000 PHP
UCPB
- interest rates – 6% – 7.5% APR
- loan term up to 20 years
- Minimum loan amount: – 500 000 PHP
- Maximum loan amount: – up to 80% of the appraised value
PRODUCERS BANK
- interest rates – 11% – 12% APR
- loan term up to 15 years
- Minimum loan amount: – 1 000 000 PHP
- Maximum loan amount: – up to 70% of the appraised value
Prestige Bank
- interest rates – from 9.00% APR
- loan term up to 15 years
- Minimum loan amount: – 300 000 PHP
- Maximum loan amount: – up to 80% of the appraised value
Mindanao Consolidated Cooperative Bank
- interest rates – 12% – 16% APR
- loan term up to 15 years
- Minimum loan amount: – 200 000 PHP
- Maximum loan amount: – up to 80% of the appraised value
- Service charge: 2% – 6%
These are only the top ten public and private housing loan programs in the Philippines. The mentioned bank does not only offer housing loans but as well as chattel mortgage and real estate mortgage. Visit UpFinance for additional information and to find more loan program offers.
What is the interest rate for a mortgage?
The interest rate for a mortgage in the Philippines usually ranges from 5% to 7.6% APR.
- For a 2 to 3 years loan term, the interest rate will be 6.750%.
- For 4 to 5 years, it’s 7.25%.
- For 6 to 10 years, it’s 7.38%.
- For 11 to 15 years, it’s 8.25%.
However, this is only the average rate, and your monthly mortgage payment will still vary depending on the loan amount, loan term, service charge, and the contract given by the bank.
How to Apply for a Mortgage
Buying your own house cost a hefty amount of money so applying for a mortgage loan is the best way for you to get that dream house of yours! In different banks and lenders, there are requirements and qualifications needed before applying for a mortgage loan. You require to have a steady income, some collateral, or government files to get the loan. So applying to get a mortgage loan may be confusing but we have your back! Below are the steps and requirements to apply for a mortgage loan.
Requirements needed for a mortgage loan:
- House loan application form
- Valid ID or government-issued ID
- Certificate of employment
- Pay slip in the previous 3 months
- Documents of income for employed and self-employed
- DTI or SEC Registration Certificate
- Income Tax Return
Steps
- Research the best bank for you that will suit your qualifications and requirements to get a mortgage loan. Each bank will differ in the application form and the qualifications so do research first
- Fill out the needed application form in the bank you will get a mortgage loan. It may be available in their facility or can be done online on their website
- Give the needed requirement by the lender or bank.
- Negotiate and have a deal with the lender or bank that you will get the mortgage loan
- Agree with each other and receive the mortgage loan!
Mortgage repurchase insurance
Mortgage insurance is helpful and important in attaining a mortgage loan for you and the people around your house. This helps you protect your property from foreclosure by the lender and banks by covering the amount needed to pay in a set duration. The higher the coverage you pay, the longer the duration of the insurance. To get Mortgage insurance, apply to your favored insurance company for Mortgage insurance. Overall, getting mortgage insurance is the biggest help to you prevent drowning in debt!
Mortgage with UpFinance
Now you know the lengthy process of getting a mortgage loan so want some help with it? Go Upfinance! Upfinance helps you with researching, acquiring, and applying for a mortgage loan by being a partner with multiple banks and lenders that are recognized across the Philippines. They give you the best offer that is well suited for your needs and even has very own mortgage calculator to make it easy for you to make a decision. Their website has a variety of functions that will make it convenient for you to calculate your expenses when availing of a mortgage loan. Get your mortgage loan now to get the house of your dream with the help of Upfinance!
