PRC 19712

PH – 0917.3665.917 | USA – 267.245.8529

Financing Schemes

Choose your Financing Options

There are 3 popular financing options in the Philippines when a buyer/investor would like to loan to purchase the property.

1) In-house Financing – you get to borrow money (or loan for your balance) “internally” or from the developer itself
Advantages:

  • Easy Approval – no or minimal background check;
  • Developers are more flexible/easy to talk with when it comes to late payments

Disadvantages

  • Shorter term
  • Higher Interest Rates
  • Higher Equity/Down payment to be shouldered by the buyer

2) Pag-IBIG Financing  – you borrow money from Home Development Mutual Fund HDMF (given that you are a member) to pay off your balance from the developer
Advantages

  • Lower to 0% Equity shed from the Buyer
  • Longest term offered (up to 30 years max)
  • Lower interest rates (as low as 6.5% to 11.5%)

Disadvantages

  • Strict Approval
  • Strict policy for late payments

3) Bank Financing – Buyer loans money from a bank to pay off they buyer’s balance from the developer
Advantages

  • Longer term than In-House financing, can go up to  20 years in some banks;
  • Lowest interest rate than In-House and PAGIBIG Financing
  • Lower Appraisal Value of the property, which leads to Higher Down payment/Equity to be paid by the Buyer

Disadvantages

  • Strict Approval
  • Strict policy for late payments