(Updated March 17, 2017)
For Filipinos, finally getting their own home in one of the highest achievements they can be proud of. Do you agree?
A home is also a symbol of security, a place where we can live at ease with the assurance that we are not going to 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 think owning a house is almost an impossible feat if you are an ordinary worker, fortunately, banks and other financial institutions have created more accessible housing loans.
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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 the foreign nationals who have not married a Filipino citizen, they can get the housing loan to for condominium purchases only. For foreigners who have Filipino spouses, they can avail 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 if you are getting a housing loan or a property equity loan. If you are new with the housing loan, you must understand that these loans are usually not fixed, and they tend to change yearly.
The housing loans are used for purchasing homes. BPI housing loan interest rate can range from 5.50% up to 11.50%. The property equity loan is using a property as collateral to borrow a certain amount which cannot exceed the equity of your asset. Equity means the real value of your property after all liabilities have been deducted. BPI charges 6.50 % to 12.50 % interest rate for their property equity loans. The rate of these loans changes yearly, 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 are required to pay the downpayment in cash and the bank will pay the rest. The maximum loanable amount will vary depending on which property you are going to use it.
BPI Housing Loan Purpose
Since you are getting a housing loan, this loan is usually to housing purposes which can be 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 in buying the townhouse you have been eyeing in a nearby town or a residential condominium in the heart of the city. On the other hand you can use your home to have the 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 anyway profitable.
Housing loans are usually loans which offer high amount. Banks even offer millions of pesos if you are qualified to do so, however, housing loans are also long term loans that take years before settlement unless you suddenly struck gold. For house and lot, BPI offers a housing loan which can take as long as 25 years. As for the other properties such as condominium, only ten years will be given as the maximum tenure. This is also applied to secured house loans use 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 with legal documents stating its value. BPI charges Php 5,000 as 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 are given a repayment schedule to follow. You must pay on time, or you will be charged with 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.
- You can use your existing loan with PAG-IBIG
If you already have an existing loan with PAG-IBIG, you can have it transferred to BPI Housing Loan, however, the PAG-IBIG must acknowledge the bank guaranty.
- 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 whuch he or she can skip without incurring any penalty fees. This gives a month free of amortization to give way to other financial obligation.
- A 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.
- Yearly repricing rate is at 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 for your application. You have to wait another week or two for the cash to be disbursed to your bank account.