Real estate business in the Philippines


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Let's first talk about the standard way to finance a property, house, condominium or anything else where to stay and live.

Financing by Bank loan

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- No membership needed, no contributions required, no need to have a savings account
- Must be Filipino citizen, or have a Visa requirement for foreigners
- Must have a monthly family income of PHP 40,000.00
- Must have a stable source of income, must have stayed at least 2 years in the current company
or have 3 years of profitable operation if running a business or practicing profession

Loan Purposes
- Can be used to purchase a town house, condominium unit
- Can be used to finance housing construction
- Can apply for re-financing
- Also offer home equity service

How Much You Can Borrow
- Some banks offer a minimum of PHP 300,000.00
- some offer minimum of PHP 500,000.00

Loan Appraisal Value Ratio
Some banks offer 80% – 90%, some banks offer as low as 70%

Interest Rates (subject to change)
- Some banks offer as low as 5.50% for the first year, subject to re-pricing
- Some banks offer a fixed rate of 6 – 7.5% for the first 5 years also subject to re-pricing
- Due to regular re-pricing, on 20th Year, banks offers an average of 9- 12% interest rate

- Application form
- Photocopy of government issued ID with photo & signature
- Marriage contract if applicable
- Alien Certificate of Registration for foreigners
- ITR for employees
- Last 3 months of pay slips or Certificate of employment for employees
- Business Registration Papers for businessmen
- Financial Statements for businessmen
- Bank Statements for businessmen
- Trade References for businessmen
- Lease Contracts or copy of Title for businessmen
- Photocopy of TCT/CCT
- Building plan with vicinity map
- Master of Deed of Declaration of Restrictions for condominiums
- Building plan for construction
- Bill of materials and Labor Cost
- Statement of Account for Refinancing

Miscellaneous Fees
- Appraisal Fee of PHP 3,500 – PHP 4,000.00
- Handling Fee of PHP 5,000.00
- Notarial Fee of PHP 500
- Registration Fee
- Doc Stamps Tax

- MRI or Mortgage Redemption Insurance in the case of death before the full payment of the loan
- Fire Insurance

Processing Time
5 – 7 business days

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