Avail Property thru Bank Financing

Bank financing is a financing option to avail of property, even cars and personal loans. At bank financing, or banks, has the strictest process on loan approval of it's clients, many documents to submit, certain income will be required along with some collateral.

Basic Requirements

Certificate of Employment and Compensation (for local)
Job Contract (for OFW)
Photocopy of 3 months bank statements

Photocopy of latest 3 months payslip
Latest Income Tax Return
2 valid (Gov't) Identification - photocopy and with 3 signatures
Proof of Billing
4 pcs 1x1 pictures

Additional Requirements

Special Power of Atty. for OFW (Bank Form and Developer Form)
Joint and Solidary Undertaking (JSU) for co-borrowers
Filled out Housing Loan Application
Clearance from Credit Company
Photocopy of Passport
Photocopy of Seaman Book

If you are going to avail at a developer, you need to pay the Downpayment (DP) which mostly 20% of the Total Price. Some are offering 10% down payment or 30% down payment. The lower the down payment at bank financing means a high appraisal of the property you are going to avail but a usual rate in the Philippines is 20% DP.

For example:

Total Price is Php. 2 Million less required 20% DP is Php.400,000 = Loanable Amount is Php. 1.6 Million

At above example, your Loanable Amount at bank financing is Php. 1,6 Million, you may now compute for your Monthly Amortization with the table below.

Sample Computation: Suppose an 8% interest rate and you want to avail at 5 years.

MA = LA x (Factor Rate of 5 Yrs at 8%)
MA = 1,600,000 Million x .0202763943
MA = 32,442 per month

 
where: MA is Monthly Amortization, LA is Loanable Amount

For Net Disposable Income (NDI) Requirement

NDI = MA / 30%
NDI = 32,442 / .30
NDI = 108,140 Income per month

Factor Rates Table

Interest Rate	5 years	10 years	15 years	20 years
6.00%	0.0193328015	0.0111020502	0.0084385683	0.0071643106
6.25%	0.0194492617	0.0112280097	0.0085742287	0.0073092820
6.50%	0.0195661482	0.0113547977	0.0087110737	0.0074557314
6.75%	0.0196834607	0.0114824114	0.0088490946	0.0076036401
7.00%	0.0198011985	0.0116108479	0.0089882827	0.0077529894
7.25%	0.0199193614	0.0117401041	0.0091286288	0.0079037598
7.50%	0.0200379486	0.0118701769	0.0092701236	0.0080559319
7.75%	0.0201569598	0.0120010631	0.0094127575	0.0082094856
8.00%	0.0202763943	0.0121327594	0.0095565208	0.0083644007
8.25%	0.0203962517	0.0122652625	0.0097014036	0.0085206565
8.50%	0.0205165313	0.0123985689	0.0098473956	0.0086782323
8.75%	0.0206372327	0.0125326750	0.0099944865	0.0088371071
9.00%	0.0207583552	0.0126675774	0.0101426658	0.0089972596
9.25%	0.0208798983	0.0128032722	0.0102919229	0.0091586683
9.50%	0.0210018613	0.0129397558	0.0104422468	0.0093213119
9.75%	0.0211242437	0.0130770242	0.0105936266	0.0094851685
10.00%	0.0212470447	0.0132150737	0.0107460512	0.0096502165
10.25%	0.0213702638	0.0133539002	0.0108995092	0.0098164339
10.50%	0.0214939004	0.0134934997	0.0110539892	0.0099837989
10.75%	0.0216179537	0.0136338680	0.0112094798	0.0101522895
11.00%	0.0217424231	0.0137750011	0.0113659693	0.0103218839
11.25%	0.0218673079	0.0139168947	0.0115234460	0.0104925601
11.50%	0.0219926074	0.0140595444	0.0116818981	0.0106642963
11.75%	0.0221183209	0.0142029459	0.0118413136	0.0108370706
12.00%	0.0222444477	0.0143470948	0.0120016806	0.0110108613

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Pag-IBIG Housing - Avail of House and Lot at Developers

Purchase of Residential House and Lot through Developers.

pag-ibigfund.gov.ph

To avail of Pag-IBIG Housing through developer, there are steps to follow and required documents to submit. Clients need to be eligible first with the Pag-IBIG Fund to qualify for their program, then must qualify for the requirement of Housing Developer. The Required Net Disposable Income (NDI) is very important to consider before to avail, not only as requirement but also would fit to clients budget.

Pre-Qualify Yourself

- are you a Pag-IBIG member, had been an active member with at least 24 months of contribution. Has no existing housing loans or being co-borrower, no cancelled housing loan, bought back and foreclosed, currently employed and could provide income documents. Not more than 65 years old at the time of application provided you are no more than 70 years old at the time of loan maturity and is qualified with income requirements based on the loanable amount.

Who will Process the Pag-IBIG Loan Application

Processing of Pag-IBIG Housing Loan Application may be a package of a developer for their clients but not all developers are the one processing.  If developer will process, clients is needed to comply with income requirements and documents. Before making reservation, it's best to know if developer will process the loan or the buyers themselves.

Net Disposable Income

- How to determine the the Net Disposable Income(NDI)? The NDI is an income requirement in order that you to qualify for a Loanable Amount with your housing loan. Here’s how to compute for a sample 749,000 Loanable Amount:

NDI = MA + MRI + FI + AC / 40%
NDI = 4,983 + 294 + 166 + 350 / .40
Php. 14, 483 is the required NDI.

MA – Monthly Amort, MRI – Mortgage Reg. Insurance, FI – Fire Insurance, AC – Addtl Contribution.
Out of your Gross Income monthly you need to deduct your monthly basic expenses and your net income should exceed your NDI requirement.

How could you determine your MRI and FI, usually at developers sample computation that is included just to give client an expected Total Monthly Amortization to come up with NDI or you may inquire to Pag-IBIG. Note: Amounts of MRI and FI above are samples only, please refer to Pag-IBIG computations.

While for Additional Monthly Contribution, you may refer with the table below.



Required Documents

For Local Employee - Certificate of Employment and Compensation, Latest 3 months Payslip. Latest Income Tax Return, 2 Valid (Gov't) IDs, Proof of Billing, TIN Number, 4 pcs 1x1 pictures.

For OFW - Job Contract, Latest 3 months Payslip, 2 Valid (Gov't) IDs, Proof of Billing, TIN Number, 4 pcs 1x1 pictures, Special Power of Atty - SPA (Pag-IBIG Form & Developer Form)

Additional Requirement - Filled out Membership Status Verification Slip (MSVS), Filled out Housing Loan Application Form

Housing loan are going to processed once the house is constructed and applicant can move in once approved and will start paying their monthly amortization.


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Jerome F. Morada

Property Investment Specialist

REBL No. 0012399

0927 - 6355127  /  0929 - 2868388

jfmorada@yahoo.com

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Tax Incentives for Economic Housing Properties

Tax Incentives in Buying Philippine Properties

I had a hard time looking for the information regarding tax incentives for "First Time Filipino Home Buyers" on the net. Usually you could find tax incentives regarding first time home buyers in other countries like USA. I later found out that there are really no tax incentives for first time buyers in our country. It's quite a bit disappointing as a first time home buyer myself.

At the end of the day thinking why there are no tax incentives we have for first time home buyers, I've come to realize the tax incentives we enjoy in all economic housing projects.

Maybe not a tax incentives for first time buyers at least we availed 12% tax(VAT) incentives at the time we availed of economic housing like Amaia Scapes Cavite project.

Here is an excerpt from BIR (Revenue Regulations No. 13-2012, dated October 12, 2012)The VAT treatment on the Sale of Adjacent Residential Lot, House and Lot and other Residential Dwellings.

The Sale, transfer or disposal within a 12-month period of two or more adjacent residential lots, house and lots or other residential dwellings held primarily for sale to customers or for lease in the ordinary course of trade or business in favor of one buyer from the same seller, shall be presumed a single or one sale of real property, whether covered by one or separate deed/s of conveyance.The sale shall be subject to value-added tax (VAT) if the aggregate value of the adjacent properties sold exceeds P1,919,500.00 for residential lots and P3,199,200.00 for residential house and lots or residential dwelling. 

This however, does not include the sale of a parking lot which may or may not be included in the sale of condominium unit. The sale of parking lots in a condominium is a separate and distinct transaction and is not covered by the rules on threshold amount not being a residential lot, house and lot or a residential dwelling, thus should be subject to VAT regardless of the amount of its selling price.

The ruling favors property buyers for economic housing classifications. Like some of my clients in economic housing project, they availed duplex units and still able to be eligible in tax limit. I'm sure most property investors had took advantage of the opportunity, as 12% VAT of a price is equal to 120,000 in a million-priced property.

I am still hoping our country could give tax incentives for "First time home buyers", to attract more young professionals to invest in property thus create commitment for themselves that would also be good for the economy in the long run.

Thank you for reading.

Jerome F. Morada

Property Investment Specialist

REBL No. 0012399

0927 - 63551127  /  0929 - 2868388

jfmorada@yahoo.com

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Basic ways on how to Detect Fake Titles

These are the basic ways on how to detect fake titles.

• First, ask a photocopy of title from your seller or owner, then ask for duplicate copy also at Registry of Deeds then compare if the initials, signatures, technical description, annotation and others elements are exactly the same. 
• The Title itself is written in security paper that is 50% cotton and 50% chemical wood pulp with artificially colored silk fibers.
• The owner's copy of the title contains the word" Owner's Duplicate Certificate.

source: uspropertyshop.com

• The Reconstituted transfer of certificate of title is identified by the letters "RT" preceding the title number, while reconstituted original certificate of title caries the letter"RO". 
• Trace the history of a title by asking to it's neighbor and to owner himself, this also to avoid buying property with conflicts with owner's relatives and other person.
• There are other elements and features of a title to look for or to compare with to confirm its genuineness, above were only the simplest way to detect fake title.`

The details herein are not to encourage buyers to do it alone with themselves but to seek assistance from licensed real estate professionals in the buying and selling process including negotiating, transfer, mediate and all acts of real estate practitioners.

Your trusted Licensed Real Estate Practitioner - Agents (Salesperson) and Brokers could do it for you as the whole process of transfer needs a licensed practitioner expertise and assistance.


Thank you for viewing, please share if you find this site useful.


Jerome F. Morada
Property Investment Specialist
REBL No. 0012399
0927 - 6355127  /  0929 -2868388
jfmorada@yahoo.com

read more...