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What Are the Different Types of Housing Loans in the Philippines?

By Frederick Johnson / Published on Monday, 02 Apr 2018 09:16 AM / Comments Off on What Are the Different Types of Housing Loans in the Philippines? / 45 views

Housing loan keyboard buttonHousing loans differ according to their purpose, financing method, and interest rates. Filipinos who aspire to become homeowners should educate themselves on the differences of each to make an informed decision on which loan to take out.

Basis Loan Info

Loans for home purchases are the most common out there, but you can also apply for financing when you need money to build a house. This applies if you already bought freehold property, which is the land itself.

Some real estate developers offer in-house financing that saves time and effort for buyers to look for funding options. This is ideal for you if you want to move in sooner and want to pay off debts within a shorter period. Otherwise, you should consider bank loans that allow a repayment period between 20 and 25 years. Government loans, such as those from Pag-IBIG Fund, are another option, especially for low-income households.

Home buyers only need to choose between two types of interest rates. Fixed-rate loans are more expensive than those with variable rates, although the latter will make it hard for you to budget payment because of varying monthly repayments.

Finding a House

Now that you know the basics of housing loans, the next step will be to find the right home at an affordable price. Property values in Metro Manila are more expensive than nearby provinces, hence a bigger home will require you to pay higher amortization for possibly a longer period.

In Cavite, you should consider buying houses in mixed-use developments like those in Lancaster. A review website like South Property Sale allows you to see it and other projects without having to visit the site, which works in your favor if you are just casually looking for properties.

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The best type of housing loan will mostly depend on your income, preferred payment period, and monthly amortization. Before deciding on the right one, consider looking for reviews on listed properties that align with some or all of your requirements.