For most of the working Filipinos, having their own home is a major achievement after years of hard work.
Unfortunately, not everyone can afford to buy a home right away. It even takes decades for some to finally earn enough to completely buy a small bungalow. Then little money is left for the furniture and other home needs. Good thing there are now various home loans you can choose from.
Asia United Bank offers a housing loan for Filipino buyers. However, you need to understand how this loan works.
AUB Home Loan
AUB Home Loan Eligibility
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When taking out a housing loan, everyone has to go through an application process. Most banks follow a list of general criteria though it can differ on certain specifications.
Commercial banks usually require the housing loan applicant to be at least 21 years old up to 65 or 70. If the applicants are not self-employed, they must be employed for at least 2 years in their current company.
Another thing banks consider is the gross income. Most banks require homebuyers to be earning at least P50,000 a month. You can combine your gross income with your spouse or parents to meet this requirement.
Unfortunately, AUB has not disclosed its specific list of eligibility. You will have to personally inquire.
AUB Home Loan Requirements
Banks have different lists of requirements. It is best to know what you will need to submit because incomplete requirements can delay the loan process. You also have to make sure that the documents are accurate, readable and consistent.
AUB requires at least two valid IDs (each from the principal borrower and co-borrower). If you are married, you must also present a photocopy of your Marriage Contract from the NSO.
As for the documents for the collateral, you will need to present the copy of the collateral title, Statement of Account, Reservation Agreement or Contract to Sell from Accredited Developers, photocopy of the lot plan or vicinity map, and updated tax related documents.
If you are planning to use the loan to home construction, you will also need a floor plan, building specifications and bill of materials. This is to help the bank decide how much it has to release for your home construction.
Other vital requirements are your proof of income. You have to present your Certificate of Employment, latest three (3) months’ payslip, and latest Income Tax return. If you are self-employed, you need to include your business registration papers, Audited Financial Statements for the last 2 years, ITR, latest three (3) months bank statements and the list of major trade suppliers and customers w/ contact details.
AUB Home Loan Amount
Loan amount also differs with various banks. Choose that some banks have a minimum offer of P300,000 while AUB has a minimum loan amount of P500,000. Do not be tempted to borrow what you don’t need. Remember that the higher amount you get will also have a higher interest.
AUB Home Loan Term
Choosing the loan term is not something you have to take lightly. You may want to choose the longest term to get the lowest amortization, but this will also cause you to pay more.
Also, should you decide to settle the loan earlier than agreed, you may be charged with a prepayment penalty based on the remaining balance.
- The required documents may depend on the purpose of the loan. If you are planning to purchase a property, then you need to have it appraised then get a loan based on the market value. You will just need the land title, contract to sell, vicinity map and tax related documents.
If you are getting a loan for home construction, you will need to provide a list of construction bills, the floor plan and the building specifications.
- If you do not need as much as P500,000 for home needs, it is better to find other options. This is to stay away from the temptation to borrow more than what you actually need.
- Consider other possible fees and their impact on your finances. Do not just focus on the amount of the loan and the interest charge you have to borrow. Know that there are a lot of other fees to settle. Ask AUB if it will charge you an appraisal fee, handling fee, notarial fee, registration fee, doc stamps tax, and insurance fees.
- Being a Pag-IBIG Fund member allows you to avail of their Pag-IBIG housing loan. Ask the AUB bank if your Pag-IBIG housing loan can help you with your repayments because there are some financing companies which partners with Pag-IBIG to make the housing loans more affordable for working Filipinos.
Housing loans have specific purposes. If you are just looking for a loan to make a minor home repair, then you can just get a fast cash loan from Cash Mart. Visit Cash Mart’s website to know how to apply for an online loan.