BPI Housing Loan Limitations Which You Probably Overlooked
For Filipinos, finally getting their own home is one of the highest achievements they can be proud of. Do you agree?
A home is a symbol of security, a place where we can live at ease with the assurance that we will not be suddenly kicked out by a landlord any time, and we can even renovate it in any way we want. Over the years, most Filipinos have thought owning a house is almost impossible if you are an ordinary worker. Fortunately, banks and other financial institutions have created more accessible housing loans.
BPI Housing Loan Eligibility
The BPI Housing Loan is available for Filipino citizens of at least 21 years old up to 65 years old by the time the loan has been settled. As for foreign nationals who have not married a Filipino citizen, they can get a housing loan for condominium purchases only. Foreigners who have Filipino spouses can avail of the loan for most of its purposes if they can present an Affidavit of Support and Waiver of Rights over the collateral property. You must also have a total household income of at least PHP 40,000 to get the BPI loan.
BPI Housing Loan Interest Rate
The BPI Housing Loan has separate sets of interest rates depending on whether you get a housing or property equity loan. If you are new to the BPI home loan, you must understand that these loans are usually not fixed and tend to change yearly.
Housing loans are for purchasing homes. BPI housing loan interest rates can range from 5.50% up to 11.50%. The BPI property equity loan uses a property as collateral to borrow a certain amount that cannot exceed the equity of your asset. Equity means the real value of your property after all liabilities have been deducted. BPI charges a 6.50 % to 12.50 % interest rate for their BPI property equity loans. The BPI Housing Loan rates change yearly. So, make sure that you check the fine print before you sign the loan documents.
BPI Housing Loan Amount
The BPI housing loans have a minimum amount of PHP400,000. You must pay the down payment in cash, and the bank will pay the rest. The maximum loanable amount will vary depending on which property you will use it. You may use the BPI Housing Loan calculator to get a figure that would fit your needs.
BPI Housing Loan Purpose
When getting a housing loan, it is usually for housing purposes, from purchasing a home to extending your patio. You can purchase an empty lot in a subdivision or with a house already built in it. You can also use it to buy the townhouse you have been eyeing in a nearby town or a residential condominium in the city’s heart. On the other hand, you can use your home to have a secured house loan and use the money for other purposes.
You have to be mindful when using your home, lot, apartment, or condo as collateral. Failure to fully pay your secured loan gives the bank the right to possess your property and use it in any way profitable.
BPI Home Loan usually offers a high amount. Banks even offer millions of pesos if you qualify for the BPI Housing loan requirements. However, housing loans are also long term loans that take years before settlement unless you suddenly strike gold. For houses and lot, a BPI home loan can take as long as 25 years. As for the other properties, such as condominiums, only ten years will be given as the maximum tenure. Also, this applies to secured house loans used for business and other purposes.
BPI Housing Loan Appraisal Fee
With secured loans, the properties must be appraised by professionals, as these must be accompanied by legal documents stating their value. BPI charges Php 5,000 as an appraisal fee.
You can actually monitor your payments with BPI. However, you must first fill out a Loan Account Information Request Form online and wait for it to be approved. You can also call 89100.
Late Payment Fee
All borrowers have a repayment schedule to follow. You must pay on time, or you will be charged a late repayment fee of 3% of monthly amortization on top of your repayment.
After you have completed your needed personal loan documents, you will get a reply within 5 days. Then it might take a week or two after verification to know the result of your application. Take note of the BPI Housing Loan processing time.
Benefits of BPI Housing Loan
Many opt for a BPI Home Loan because of these advantages.
- You can use your existing loan with PAG-IBIG
If you already have an existing loan with PAG-IBIG, you can transfer it to BPI Housing Loan. However, the PAG-IBIG must acknowledge the bank guarantee.
- Clients can choose a month of the year when they can skip paying
BPI has ‘paybreak’ wherein the borrower can choose a month in each year that he or she can skip without incurring any penalty fees. This gives a month free of amortization to give way to other financial obligations.
Limitations of BPI Housing Loan
However, BPI Home Loan still has some drawbacks you must watch out for.
- Term insurance coverage is required.
You must agree to get the Group Financial Security Plan (previously known as MRI). The GFSP is a term insurance coverage wherein you have to put the bank as your beneficiary. This gives the bank the security that the loan with paid even if the borrower passes away.
- The yearly repricing rate is 7.50% per annum.
The BPI Housing Loan does not have a fixed rate. It changes every year. This makes it hard to do the budgeting as it is not fixed.
- The loan process takes more than a week.
If you are in an emergency situation, then this beats the purpose. It takes 5 days just to get a reply to your application. You must wait another week or two to disburse the cash to your bank account.