Can You Be Sure with PNB Housing Loan?
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 dreams is to provide a home for their families. Since we boast ourselves as family-oriented, a home is a symbol that we can 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. Also, a lump sum makes it almost an impossible feat for many. Fortunately, homes are more accessible and affordable with housing loans. Often, it comes from banks, government institutions, and authorized lenders.
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. That’s why PNB housing finance has been made more competitive in recent years. One of these loans is PNB’s Sure Home Housing Loan. This loan is to both Filipino citizens and natural-born Filipinos who have changed their Filipino citizenship to another. However, the 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 a co-applicant.
PNB Housing Loan Requirements
PNB requires a list of documents. These are the latest Income Tax Return (ITR) and Certificate of Employment (COE). However, this varies depending on the borrower’s income source. Luckily, PNB Sure Home Housing Loan is also available for OFWs, self-employed professionals, practicing professionals, landlords/owners, and transport business owners. Residents who plan to purchase real estate properties outside Metro Manila can still apply for a lower minimum amount. Sadly, it differs from 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 at 10.75%. The fixed interest rate allows you to plan your budget ahead of time. Getting a longer tenure is an enticing offer for a lower monthly amortization. But, you have to see that the interest rate is higher, which means you pay more. PNB encourages the borrowers to apply for the lowest amount they actually need to make sure that they can pay with ease.
The main purpose is to buy real estate properties such as houses and lots, lots, condominium units, or townhouses. Also, you can use it for your house construction, home renovation, and refinancing. Moreover, it is for expenses involving your home using the real estate property as 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 Automatic Debit Arrangement or Post Dated Checks. Make sure that your bank account has enough funds to repay. You will be charged a late payment fee if it lacks the amortization on its due date. Aside from the interest rate, there are other fees you have to think of. Some need to be paid before and after the loan process.
PNB Housing Loan Fees
Before your loan application goes through processing, you must produce documents that may need notarizing. Each page notarized or signed by a lawyer has to be paid. Then there could also be fees for documentary stamps. After submitting the requirements you have tediously acquired, you must pay the appraisal fee. Upon loan approval, you still have to pay certain fees. These are the processing fee, PNB Mortgage Registration fee, Fire/ Lightning/ Earthquake Insurance Premium, and PNB Mortgage Redemption Insurance Premium.
As for the cash disbursal, your cash can be released in two ways. If you purchase a condominium unit, lot, house and lot, or townhouse, your loan will be disbursed in a lump sum. On the other hand, if your purpose is house construction or home improvement, you can get your cash with up to five releases. The borrower who wants a home improvement or construction has a chance just to pay the interest during the home construction. Then, it will be deducted on the second to the last cash release.
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PNB Home Loan Benefits
Listed below are why many Pinoys opt for PNB Housing Loans.
- A fixed interest rate means the interest rate will not be changed for the whole duration of the loan. Housing loans have variable interest rates. It changes according to the yearly appraised value of the collateral. The value of real estate changes on the market. You can reduce the risk of losing money in case the value of the collateral goes down. However, the interest rate is subject to go up according to the bank’s discretion. PNB allows you to plan your finances without worries if your interest rate goes up the next year. However, some banks offer interest rates that can decrease each year. This gives the borrower breathing space over time.
- Certain premium insurance is only for collateral with improvements. Some banks require premium insurance for all collaterals. However, PNB is not as strict.
PNB Home Loan Downsides
Listed below is why some Pinoys hesitate to borrow from PNB.
- The appraisal fee is nonrefundable. You must pay the appraisal fee before your loan application can be processed. Sadly, 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 the term. The maximum loan term is 20 years. However, 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 use as collateral.
- If your spouse is a foreigner and your only source of finances is his salary, you can still get a loan. However, your spouse’s income must be from employment in the Philippines. It requires proof of your spouse’s local employment. 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 come from their spouses who own businesses 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.