Finally getting your new home?
Buying your own home is an accomplishment most Filipinos dream of. It is an aspiration we want to give our families for them to live in comfort and security.
Like every “accomplishment,” It does not come easy. Unless you inherited a home or won it in a raffle contest, you seriously have to consider how to finance it.
Of course, in a perfect world, you have to pay in cash so there will be no need to think of a grueling loan process and interest charge. However, in reality, you will need a housing loan flexible enough to fit your needs.
There is a lot to consider with getting a housing loan. You need to take the time looking for the best home loan. Let’s take a look at Bank of Commerce Housing Loan
Does Bank of Commerce Housing Loan fit your purpose?
A housing loan can be used in various ways, however, there are limitations set discretely by banks. BOC home loans are used to purchase a house and lot, a townhouse or a condominium unit. If you already have a vacant lot, then you can use the loan for a home construction.
What if you inherited an old home which needs to be renovated or reconstructed? BOC Home loan can also fit just right.
On the other hand, if you need a loan to fix your broken ceiling and roof this rainy season, take another option. BOC housing loan just like any bank loan will take a week or so to be approved. If you are in a hurry, then get a loan from other financial institutions such as private money lenders.
Another purpose of BOC housing loan is refinancing. What is refinancing? Let’s say you got a home loan from another bank. You have miscalculated your capacity to pay the monthly installments. Simply you bit more than you can chew.
BOC home loan provides refinancing service. This means that BOC will settle your original loan in your stead. Then you can pay up BOC with new loan terms. Banks with this service usually offer lower interest rates than your previous loans.
Nevertheless, make sure to pay the installments diligently to avoid penalties. A refinancing loan can help you get your dream home, but if you need to handle it responsibly or else it can drag you to deeper debt with higher interest rates.
Can BOC Housing Loan provide the amount you need?
Take note that the question is about the amount you need and not what you want. There are some borrowers who borrow as much as they want since they can pay the amount in installment for years.
BOC housing loan amount starts at Php 500,000 up to 80% of the property’s market value. Some borrowers choose to only pay 20% down payment even though they can push to a higher amount. The advantage of paying higher down payment is paying the lower principal loan and less interest charge.
BOC offers housing loan terms from 10 to 20 years. If you think you can handle a housing loan lower than 10 years, then find another option. The longer term you use, the more interest you have to pay in long run.
Also, use a loan calculator or ask for a quote to know how much you will really have to pay each month. This way you can have a realistic idea if you can handle the payments without sacrificing your daily needs. On the other hand, you can see if you can handle a higher monthly repayment so you can get a shorter term and finish it faster.
Can you avail the BOC Housing Loan with the following requirements?
- Duly accomplished application form obtained either online or from one of BOC’s branch
- 2 pieces of photos of the borrower and the spouse
- Clear copy of 2 valid government IDs bearing the signature specimen of the owner
- Latest 6 months of Bank Statements
- Marriage certificate if applicable
Income requirements for Employed
- Original copy of Certificate of Employment
- Income Tax Return with BIR or bank stamp
- Payslip of the last three months
- Other applicable proof of income.
Income requirements for Self- Employed
- Business Registration Certificate issued by DTI or SEC whichever is applicable
- Photocopy of Audited and In-House Financial Statements for the last two years
- Photocopies of Income Tax Return (ITR) of the last 3 years
- Company profile
- List of customers and suppliers
It is natural for the bank to ask for additional documents depending on the time of property or purpose of the loan. So expect that it will take some time to complete the required documents.
What to Consider
Before getting a housing loan, it is important to clarify your need. Consider the type of property you are buying and the number of years you can handle to settle the loan.
A loan is a powerful tool to get what you dream of, however, you must handle it well so it won’t pull you to uncontrollable debt.