ASK A PRO. ASK A BROKER: What are the different types of financing or housing loans?

​In general, there are 3 common types of financing:
1) Bank Financing
     - Available to almost all developers
     - Interest rates from 5%-10%
     - Loan term up to 30 years (varies per bank)
     - Processing time as fast as 5 working days
     - Processing fee averages from 1%-2% of the loan amount
2) PAGIBIG Financing
     - Eligible to PAGIBIG members
     - Available to selected developers only
     - Maximum loanable amount is P6,000,000
     - Interest rates from 5.35%-10%
     - Loan term up to 30 years
     - Fastest processing time is 15 working days
     - Low processing fee
3) In House Financing
     - Financing offered by the developer
     - No income documents required
     - Interest rates from 12%-19% per annum
     - Maximum loan term is 10 years
     - No processing fee
     - Usually availed by foreigners, buyers with no income documents, buyers with bad credit score and not approvable by the bank, buyers with complicated status

If you intend to avail of a housing loan, before buying, check which financing option would be best for you and applicable to the property you are eyeing to buy. For bank financing, you may ask your broker to assist you in getting a pre-approval first before purchasing. You may get the services of a licensed broker to guide and help you in finding the right investment for you. Feel free to reach me. All the best to you!