When you finally decide to buy the very first house you want to own, your head will be filled up with so many questions about the house. How many rooms do you want? Do you need a big lawn? Would a bungalow just fit your future plans for your family? However, what you must consider first is your housing loan.
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A lot of Filipinos can’t buy a house with huge chunk of cash. Though it is the best option, many just don’t have the money to pay out their homes in just one go, especially that there will surely be cash separation anxiety. Banks have long realized that Filipinos need an option that gives them a chance to afford a home little by little, and thus housing loans became popular if not competitive in the recent years, and this include RCBC Housing Loan.
RCBC Housing Loan is offered to Filipinos 21 to 65 years old. Those who had changed their nationalities can also be eligible for this housing loan, however they are subject to follow Batas Pambansa Blg. 185 and Republic Act 8179. This means that former Filipinos by birth but have sworn to become citizens of another country can only acquire a residential urban land up to 1,000 sq. meters. They can own a residential land in rural areas but only up to one hectare. Foreign nationals married with a Filipino citizen can only purchase condominium units.
You must be employed for a year as a permanent employee to qualify for the loan. Present your COE, government IDs, proof of tax payment, vicinity map of the property, and residence certificate. You also need to provide Building Plans and Bill of Materials if you plan to use the loan for construction. OFWs must have been working for two years abroad.
If you are an entrepreneur, your business must have been profitable for the last two years. Provide a copy of your ITR for the last two years, bank statements of six months, financial statement of two years, business permits and registration, company profile, property documents and your list of suppliers and customers.
As you go shopping for a lot, home or condo, ask for the loanable amount that you can borrow. RCBC Savings Bank has a minimum loan amount of P300, 000 up to the 70 to 80% of the property you are considering since it will be used as your collateral. The bank will evaluate your financial capability to pay and your character as a borrower by pulling out your credit report from credit information institutions such as Credit Information Corporation and Credit Management Association of the Philippines Inc.
With RCBC Housing Loan, you can buy a lot, a house and lot, townhouse or condominium unit. You can have your existing house renovated, have a new house constructed, and reimburse the money you have used to pay the property. Unlike most banks, the RCBC Savings Bank allows you to use this loan to pay off an existing housing loan if you think that it can give you financial ease.
Alongside the purchase price of the property, you also have to pay for the Mortgage Redemption Insurance offered by SunlifeGREPA Financial and the Fire Insurance of Malayan Insurance Company. This is to ensure that the bank will still get paid in event that you pass away before the maturity of the loan.
RCBC Savings Bank offers MYHOME BUDGETER LOAN and HOME BUDGETER PLUS LOAN for Filipinos who have existing homes or real estate properties. They can use their properties as collateral to get a higher amount of loan compared to unsecured personal loans. They can use the loan for debt consolidation, tuition fees, travel and other purposes.
The minimum loanable amount is P300, 000, this is lower compared to most housing loans offered by banks in the Philippines. This means that you can apply for this loan even if you just want a simple home renovation or repair.
However, as good as it sounds, you have another thing to consider. RCBC Savings bank only finances properties within the service areas of RCBC and RSB branches. If you are looking forward to buy a home or land in a province which do not have either RCBR or RSB nearby, then you would have to consider another housing loan provider.
Another downside is, if you are self-employed you have to divulge your list of suppliers and customers. Most customers are not comfortable when any of their information is being shared to a third party. Also, some suppliers may be keen when dealing with a person who has outstanding debt.
If this is your first time to get a home with a housing loan, take time to shop around for other loans that may best suit your needs and lifestyle. Make sure that you understand all the terms, and that you know all the fees you have to pay. Know which one is a responsible lender to protect the future of your finances.