Frequently Asked Questions
Are you thinking of purchasing a home or investing in real estate but you don’t know how to go about it?
The questions below are most often asked by our clients, we hope to help you get the answers that you need. However, if you have questions not addressed here, feel free to contact us. We will try our best to answer your questions promptly.
We will make sure you are as educated as possible. Together we can find you your dream home!
1. Why buy a home?
Buying gives you the security of owning your home. You will be able to rest easy at night without worrying of increasing rental rates. You will be able to create your own private space for your family knowing that all you do to your home is yours! No landlord to contend with and there is always the appreciation of your property’s value.
Unlike paying rent monthly, what you pay through a home loan goes to your ownership in the property! Why rent when you can instead pay for your own home?
2. I’ve now decided to buy, how do I go about it?
Browse through our extensive listings of properties from which you can choose your property based on your budget, preferred location and house specifications. You can contact us for more details on the property by filling up an inquiry form.
3. What is the minimum down payment I need to pay?
This varies per subdivision. Usual practice is 20% but there are some who only require 10%. You may opt to pay the down payment in cash or installment. The terms depend on your chosen house.
The balance could then be loaned through the developer itself or through its accredited banks or through the Philippine Government’s Housing Loan program through Pag-IBIG.
4. When will my house be constructed?
When buying through housing developers, they usually require 20% down payment before they can construct your home for you. You may pay the down payment in cash so they could immediately start constructing your home or you may pay through installment. Just remember, the construction starts after full down payment. So if you’re paying through a staggered term of 12 months, they will start construction after 12 months.
Typically, construction period is 4-6 months however, there are some that take longer construction. You need to take this into account, especially if you are in a hurry to move in.
5. When can I move in?
After down payment, construction of your home commences. So you can be sure that what you are getting is a brand new home. After the construction period given by the developer, you can usually move in after approval of your housing loan, whether it be through Pag-IBIG or through banks.
We advise our clients to submit their loan requirements as soon as they finish paying the down payment; processing of the loan application will then start after house construction. When your loan application has been approved and released, you can now move in!
6. I’m interested in rent to own units, how can I avail this?
Rent to own units are few and far between because subdivisions normally require partial payment (in the form of your down payment) to construct. However, we sometimes do have listings such as this. Just note however that the monthly payments are usually higher. Why? You are not just paying for the down payment, you will also be paying for RENT. This is because you have not yet owned the house until you finish down payment and your loan has been released. So you are being treated as a renter. However, once you finish your down payment and the developer has been paid by your bank or Pag-IBIG, you can now call your home rightfully yours.
7. What are the modes of payment in purchasing a home?
You can purchase your home by paying 100% cash. Own your home outright!
However, you can still buy a home even when you don’t have a bundle of cash. You can avail of their installment schemes, some even offer no interest loans!
There are three options open for you:
When paying through in-house, this means that you are loaning your home from the developer directly.
A. Easier Processing – developers normally require less documents from buyers
B. Maceda Law – Under this law, should you default in your housing loan payments, developers are required to issue you three 30 day notices until they can foreclose on you. Should this unfortunate situation happen, you can request for a partial refund. Per Maceda law, this is at least 50% of what you paid, up to 90%. There are provisions on this however.
You must be consistently paying for at least two years. When this threshold has been reached, you can request for 50% refund of the principal amount you paid. Every year thereafter entitles you to an additional 5% up until 90% of your payment.
A. Higher interest rates and shorter terms – The business of the developer is not loans but building houses. Thus, they are not after interest income, in fact, they prefer bank or Pag-Ibig loans so they can be paid already and they can again use the capital in their business and that is to build and sell houses.
- Accredited banks – Subdivisions have partner banks from which their home buyers can apply a loan from. There is a tight competition among the banks and we will help you choose the best option for you.
- Pag-ibig – As a benefit in being a Pag-IBIG member, you can avail of their housing loan program. They are also offering up to thirty (30) years term for minimal monthly payment.
8. I’m not a Pag-ibig member but I would like to avail of a housing loan.
Pag-IBIG housing loan program is exclusive for Pag-IBIG members so first step is to apply for membership. If you are employed and earning at least Php 4,000.00 monthly, your employer must take care of this for you.
If self employed, you can still apply as a member; as long as you can provide the necessary income requirements.
How To Join Pag-IBIG As A Voluntary Member
- Accomplish and submit two (2) copies of the MDF and all required supporting documents to the Marketing and Enforcement Division of the concerned Pag-IBIG branch office (bring all originals for authentication).
- Secure a Payment Order Form (POF) from the Marketing and Enforcement Division, and then proceed to the Cash Division for payment of initial Membership Contributions (MC).
- Present all verified/stamped documents to the Marketing and Enforcement Division.
- Secure a Payment Order Form before proceeding to Cash Division for payment of contribution
Pag-IBIG members who are active in their contribution for twenty four (24) months and above are qualified to apply for a housing loan. However, new members like you who are still short of the 24-month membership requirement, shall be allowed to make lump sum payment based on the mandatory monthly membership contribution rates. This means that you pay for the required monthly contribution in full so you can apply for a loan.
If your down payment is payable in 12 months, you must pay for the 24 required monthly contributions within the 12 month down payment period.
9. What are the requirements in applying for a Pag-ibig loan?
Pag-ibig requirements are as follows:
- Four pieces 1 x 1 ID picture
- TIN Card
- Residence Certificate
- Two Valid IDs with Signature
- Two Valid IDs with Signature of Spouse (if married)
- Marriage Contract (if married)
- Birth Certificate (if single)
- Barangay Clearance
- Pag-ibig Contribution Printout
- 12 Post Dated Checks
- Pag-IBIG Housing Loan Application (PHLA)
- Membership Status Verification Slip (MSVS)
- Special Power of Attorney (SPA)
- Two Valid IDs of SPA
- Residence Certificate of SPA
- Seaman’s Book (Photocopy)
- Job Contract (Photocopy)
- Passport – Photocopy of the page with picture and page with signature
For Local Employees:
- Certificate of Employment
- BIR Form 2316 (with tax certificate or W2)
- Latest 1 month payslip
- Service Record (if Government Employee)
- Mayor’s Permit
- Income Tax Return
- Audited Financial Statement
10. What are post dated checks(PDCs)?
These are checks dated on your due dates. This will not be deposited all at the same time but on your monthly due dates. You have to ensure that you have deposited your monthly payment before your dues.
11. I have an existing property loan with Pag-IBIG, can I still apply for another housing loan?
You must first settle your existing property loan before you can apply for another one.
12. What if I have an existing salary or multi-purpose loan with Pag-IBIG, can I avail of a property loan?
You must also settle existing multi-purpose loans.
13. What are the other costs in purchasing a home?
- Title Transfer and Registration fees – This is to transfer the land title from the developer’s name to yours. You officially own that property!
- Mortgage Redemption Insurance – This is an insurance to cover the unpaid balance of the loan in the event of death or total disablement of the borrowers.
- Fire Insurance – to cover for unfortunate incidents of fire in your home
- Application and Mortgage Fees – payment for application of bank loans
14. Do I pay extra for your services?
We are a realty firm lead by a PRC licensed real estate broker and we are accredited under these developers. There will be no agent fees necessary.
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