Using your real estate property as collateral to get cash thru house and lot loan is easy to accomplish in the Philippines. That is if you will just follow basic rules before and during application process. Below are some important matters that must be addressed by the borrower and your loan agent (if you have one).
Important Considerations Before Application
- Be sure you have complete requirements (see list below)
- Photocopy all documents in advance before reporting to the office of the lending company to apply
- Under our 2-3 minute pre-qualification interview
- Ask your agent or see if you have completely filled up the application form
- Know the terms of payment, processing fee charges, if there are other fees, loanable amount computation, chances of approval and getting declined, appraisal value determination, interest rates and all policies of concern
- Open up qualification, income sources and matters regarding your personal finances with your agent
Basic Requirements for House and Lot Loan
- Certified true copy of TCT (transfer certificate of title)
- Updated RETR (Real Estate Transfer Return)
- Updated tax declarations (land and building)
- Updated tax clearance
- Vicinity map
- Latest picture of the property
- Latest 2 valid IDs of borrower
- Latest electric or water bill of borrower
- Proof of income of the borrower
- Latest tax identification number (TIN)
Interest Rates
- 1.5 % add on per month (subject for qualification) (must not have a bad credit c-map)
- 1.39% add on per month (bank provider)
- 2.5% add on per month (private financing) (no c-map) (allows bad credit borrowers) (allows applicants with court case…) (allows low to medium income qualification)
Loanable Amount or Appraisal
- 80% fair market value or up to 10M maximum possible loan based from capacity to pay and property appraisal value
Processing Fee
- 5.5% of loanable amount value
Processing Time
- 10-15 days (if with complete requirements, no c-map and no application & document problems
Loan Payment Terms
- 60 months maximum (depending on borrower and/or provider policies
Please note that some of our providers allow additional collaterals to use for higher appraisal or loanable amount to avail. We have borrowers who are trucking and construction business owners for example who have opted to use their trucks as additional collateral and they usually get higher cash loan compared to regular borrowers.
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