OFWs have been helping our economy thrive for the past decades. They work abroad enduring homesickness, extreme weathers, culture shocks and constant overworking to provide the best for their families. This includes a home they can call their own. Metrobank has created a home loan which includes OFWs as their potential borrowers.
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Metrobank Housing Loan
Metrobank Home Loan is offered to Filipinos and Permanent Residents ages 21 to 65. If you are working in the Philippines, you must be a regular employee earning at least P30, 000 a month. On the other hand, if you are an OFW, you must have an active employment or a signed contract upon application. You have to show that you are earning a minimum monthly income of $1,000. As of writing, this is equivalent to around P50, 000 a month.
The land based OFWs with less than 2 year at the present employment must have at least 5 years of working experience in the Philippines prior to employment overseas. The loan is also offered to OFWs with different employers abroad for five years, or a combined employment both locally and overseas. For seafarers, you must be working as a sea based OFW in your previous agencies for the last 48 months or have completed at least 24 months under your current agency.
OFWs has to present required documents aside from a government ID depending if they are sea based or land based. Land based must submit a certificate of employment with the email of the employer. Seafarers must present the latest POEA contract. These documents will only be available if you already have a current employer abroad.
Note that as the term stretches, the interest rate increases. Fixing period means giving you a fixed interest rate for a period of time. This protects you from fluctuating interest rates which depends on the rates in the real estate market. You can have a better budgeting as you will know the amount of amortization you have to pay.
It might be tempting to choose the longest term of 15 years due to low monthly amortization, but the shortest term has the lowest interest rate. Choose the term that will best suite your needs and cash inflow. If you choose a long term housing loan, but soon decide to pay off earlier than agreed, you might have to prepayment penalty.
Your loanable amount will depend on the property you want to purchase. Note that you are required to pay the downpayment upfront. No bank with finance a home loan 100%. The borrower has to shoulder the downpayment, and the rest will be paid by the bank. The bank will also keep the property title as long as you haven’t settled the loan.
You can use the Metrobank Home Loan to purchase a lot, a house and lot, a condominium, and a townhouse. You can also buy and finance a house construction, or have a house constructed on your own lot. You can also have your home renovated or reimburse the amount you use for your house renovation. Basically, you can use this loan for anything that involves a major purchase and expenses for your home. You can choose a term between 10 to 25 years.
Take note that there are other fees that you must also consider aside from the actual price of the property. Some fees are fixed while others will depend on the location of the property and documents to be acquired.
Since you are an OFW, it will be a convenience to check your loan status online. This way you can monitor your payments even though you are miles away.
Is this a Home Loan for OFWs?
Though Metrobank give housing loans to OFWs, it is not offered to all of them. To be able to qualify, a seafarer must be a ranking official. These days, not every seafarer can get promoted even after some years of breaking backs at the sea.
Also, only land based OFWs with administrative, technical or officer role can apply for the loan. We know that millions of OFWs are working as domestic helpers, construction workers, factory workers, and entertainers. They might be earning more than $1,000 a month if they have multiple jobs, but they won’t qualify for this housing loan.