(Updated February 1, 2017) Can PNB Housing Loan help every Filipino afford a home?
Over the years, Filipinos put owning a house on top of their priority list. Whenever you watch a TV contest regardless if it is a singing, dancing or even a reality show, aspiring winners usually say that one of their dream is to provide a home for their families. Since we boast ourselves as family-oriented, a home is a symbol that we are able to provide safety for our loved ones. As for some singles, this shows that they are now mature enough to survive on their own.
Owning a house involves much paperwork and a lump sum makes it almost an impossible feat for many. Fortunately, homes are now made accessible and affordable by housing loans offered by banks, government institutions and authorized lenders.
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PNB Housing Loan Eligibility
While many have discovered the ease amortization brings, some Filipinos still think that they simply can’t afford it with their regular incomes. This is why housing loans were made more competitive in the recent years. One of these loans is PNB’s Sure Home Housing Loan. This loan is offered to both Filipino citizens and natural-born Filipinos who have changed their Filipino citizenship to another, though they latter can only purchase up to a lot area of 1,000 sq.m. only. The borrower must be 21 to 65 years old with a regular income of not lower than P40, 000. If your salary is lower than the required minimum income, you can make your spouse or parent as co-applicant.
PNB Housing Loan Requirements
PNB requires a list of documents such as the latest Income Tax Return (ITR) and Certificate of Employment (COE), yet this can also vary depending on the source of income the borrower has because PNB Sure Home Housing Loan is also made available for OFWs, self-employed, practicing professionals, landlords/owners, and transport business owners. Residents who plan to purchase real estate properties outside Metro Manila can apply for lower minimum amount than those who want to acquire a property in the metro.
PNB Housing Loan Features
The Sure Home Housing Loan can stretch from 1 year with an interest rate of 5.75% up to 20 years charged with 10.75%. The interest rate is fixed, which allows you to plan your budget ahead of time. While it is enticing to get a longer tenure as it potentially offers lower monthly amortization, you have to see that the interest rate is higher, and this means you are paying more. PNB encourages the borrowers to apply for the lowest amount they actually need to make sure that they can pay at ease.
While the main purpose is to buy real estate properties such as house and lot, lot, condominium unit or a townhouse, you can also use it for your house construction, home renovation, and refinancing. Mostly, it is borrowing for expenses involving your home using the real estate property itself as the collateral. The value of the property will be based on the appraisal which will cost you P3, 500.
Since PNB is a bank, the repayment method is either through Automatic Debit Arrangement or Post Dated Checks. Make sure that your bank account has enough to repay the amortization on its due date or you will be charged with a late payment fee. Aside from the interest rate, there are other fees you have to pay before and after the loan process.
PNB Housing Loan Fees
Before your loan application goes through processing, you have to produce documents which may need to be notarized. Each page notarized or signed by a lawyer has to be paid. Then there could also be fees for documentary stamps. After submitting the complete requirements you have tediously acquired, you have to pay for the appraisal fee. Upon loan approval, you still have to pay certain fees such as the processing fee, Mortgage Registration fee, Fire/ Lightning/ Earthquake Insurance Premium, and Mortgage Redemption Insurance Premium.
As for the cash disbursal, there are two ways your cash can be released. If you are going to purchase a condominium unit, lot, house and lot, or townhouse, your loan will be disbursed in lump sum, on the other hand, if your purpose is a house construction or for home improvement, you can get your cash with up to five releases. The borrower who wants a home improvement or construction is given the chance to just pay the interest during the home construction. Then it will be deducted on the second to the last cash release.
PNB Housing Loan Benefits
- Fixed interest rate means the interest rate will not be changed for the whole duration of the loan. There are housing loans which have variable interest rates that can change according to the yearly appraised value of the collateral. The value of the real estate changes on the market, and to reduce the risk of losing money in case the value of the collateral goes down, the interest rate is subject to go up according to bank’s discretion. PNB gives you the freedom to plan your finances without worries if your interest rate goes up the next year. However, some banks offer interest rates which can decrease each year. This gives the borrower a breathing space overtime.
- Certain premium insurance are only for collateral with improvements. There are banks which require premium insurance for all collaterals, however PNB is not as strict.
PNB Housing Loan Downsides
- Appraisal fee is nonrefundable. Since you have to pay the appraisal fee first before your loan application can be processed, you still don’t know if your loan will be approved. In case you get declined, you can’t reimburse your P3, 500.
- You can get a loan for certain properties for only 10 years of term. Though the maximum loan term is 20 years, certain properties such as condos can only be for 10 years term. The flexibility of the term greatly depends on the kind of property you are using as a collateral.
- If your spouse is a foreigner and your only source of finances is his salary, then you can still get a loan, however, your spouse’s income must be from an employment here in the Philippines. This means there must be a proof that your spouse is locally employed. Let’s say your spouse is a foreigner employed in another country, then this must be verified with PNB’s overseas offices. This means Filipinos whose finances comes from their spouses who their own business in another country can’t apply for the loan.
- OFWs applying in the Philippines need a co-borrower to apply for a loan regardless of their income. The co-borrower must meet the eligibility requirements and must pass separate documents.
If you need more flexible loans for other purposes, you can get it from Cash Mart. Cash Mart offers various online loans for quick cash needs.