How buying a home works
Buying your first house and lot is simpler than it looks. Here is what to expect, in plain words, and we walk you through every step.
Pick how you want to pay
Pag-IBIG housing loan
Usually the lowest monthly. Interest is about 3% to 6.25% a year depending on the program, with up to 30 years to pay and loans up to P10M. You need to be a Pag-IBIG member with at least 24 monthly contributions, and missing months can be paid in one go.
Bank loan
Interest is about 5.5% to 8.5% a year, depending on how many years you choose. Most bank loans run 15 to 20 years, and some banks offer up to 30. Approval looks at your income and credit record, so it suits buyers with steady, documented income.
In-house financing
You pay the developer directly. Easier to qualify, but the interest is higher, about 10% to 18% a year, with terms of 5 to 15 years, depending on the developer.
Cash
Pay the full price in one payment or over a few months. Developers often give a cash discount, so ask us for the spot cash computation.
Rates change, so the developer's or bank's computation is final. Estimate your monthly payment
From reservation to keys
- Reserve. A reservation fee holds the unit or lot for you. It is usually not refundable, and it is deducted from the price.
- Pay the down payment. Most developers let you spread it monthly, often over 12 to 24 months.
- Loan processing. For Pag-IBIG or bank financing, your loan is processed and approved, then the lender pays the developer the balance and your monthly amortization starts. With in-house financing, you go straight to monthly payments to the developer.
- Turnover. You receive the keys once the house is finished and your papers are complete.
Buying while working abroad
You can reserve and pay from abroad. A family member in the Philippines can sign papers for you through a special power of attorney (SPA), which you sign abroad and have authenticated at the Philippine embassy or consulate, or with an apostille, depending on the country. OFWs can also join Pag-IBIG and use its housing loan.
What you usually need
- Two valid government IDs
- TIN (tax identification number)
- Proof of income: certificate of employment and payslips, or ITR and business permit if self-employed
- For OFWs: employment contract and proof of remittance
- Marriage certificate, if married
- Pag-IBIG MID number, for a Pag-IBIG loan
Each developer and lender has its own list, so we send you the exact one for the project you choose.
Costs besides the price
Ask about transfer taxes and fees, move-in fees and monthly association dues. Some developers include them in the price and some charge them separately, so the computation we send shows which apply.